FIN5EQS S1 2019 Equity Research Report: Healthcare Sector Analysis

This equity research report provides an analysis of the Australian healthcare sector, including an overview of the industry, competitive positioning, and a discussion of key players. The report utilizes Porter's five forces to evaluate the competitive landscape, examining factors such as the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitutes, and industry rivalry. The report also examines the current state of the healthcare market and provides insights into revenue sources and market dynamics. The report also contains an introduction, a main body, and a conclusion, as well as references to support the analysis. The report is a comprehensive equity research report on the Australian healthcare sector, suitable for students and professionals interested in understanding the healthcare market and making informed investment decisions.

Equity
Research
Report
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Industry overview and competitive positioning..............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6
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INTRODUCTION
MAIN BODY
Industry overview and competitive positioning
Australia has an integrated health-care system but resources are still not uniformly dispersed
due to their large scale. In Australia, medical care is provided by both government and the
private sector firms which are also paid for by the government. Healthcare in Australia is
primarily financed by government at national, state, and local government levels, as well as by
private medical insurance but health care expenses are also incurred by non-profit organisations,
with significant costs borne by patients or charities. Some resources, particularly remote and
mental health services, are provided by volunteers.
The Community Services includes a variety of health care and services. Public hospitals are
the main profit producer for the region, accounting for over half of Australia's revenue from
health care. Subdivision general practitioners, nursing professionals and doctors also serve major
revenue sources. As well as widening private insurance coverage, Australia's rising and aging
population is expected to create high demand for healthcare services over the five years to 2018-
19. Increasing demand has largely guided revenue growth, as inflation in some sectors has
outpaced rises in Medicare benefits per program and schedule fees.
There are some key players which capture the Australian health care market and all are as
follow; Ministry of health market, Department of Health and Human Services, Queensland
Health and Department of Health of Western Australia.
Porter’s competitive strategy:
Threats of entrants: New competitors in Health Care Equipment & Services are need to
introduce creativity, innovative ways of working and bringing pressure on Ansell Limited
through a lower pricing approach, reducing prices and supplying consumers with new value
proposals. Ansell Limited must overcome all these obstacles and build successful barriers to
preserve its competitive advantage. Through making new goods and services innovated. New
services not only carry new clients to the market but also offer old consumers a reason to
purchase goods from Ansell Limited. By creating economy of scale so the fixed expense per unit
can be reduced. New competitors are less likely to enter a competitive market, where existing
players like Ansell Limited tend to regularly define the standards.
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Bargaining power of suppliers: The margins that Ansell Limited can gain from the
market can be reduced by distributors in leading position. Strong Health Care Equipment &
Services suppliers use their bargaining leverage to obtain higher rates from companies in the
Health Care Equipment & Services market. By getting multiple suppliers create efficient supply
chain. By playing with consumer designs utilizing various materials in such a way that if costs
increase from one raw resources then the business will switch to another. Developing dedicating
suppliers those are dependent on the client. Some of the things Ansell Limited should learn from
Wal-Mart and Nike are how third party distributors were founded by those firms.
Bargaining power of suppliers: Buyers are also very aggressive. They choose to buy the
best possible items by charging as small price as feasible. This put long-term stress on
profitability for Ansell Limited. The larger and smaller the customer base is from Ansell limited
the stronger the consumers 'negotiating power and the greater their willingness to pursue through
discounts and deals. That will be useful in multiple ways. This would that the buyers 'bargaining
power and provide the company with an opportunity to simplify its selling and manufacturing
cycle.
Threats of substitutes: When a different product or service addresses the needs of a
specific customer in different ways, productivity in the industry suffers. Services such as
Dropbox and Google Drive replace hardware drives for example. A replacement product or
service is highly threatened if it provides a business model which is fundamentally different from
the sector's present offerings. By becoming more service focused than simply product focused.
By understanding the consumer's core desires, instead of what the consumer purchases and by
raising the price to the consumers to turn.
Rivalry: When the competition in an industry's established players is strong then it will
push down prices and undermine the company's overall profitability. Ansell Limited serves in a
very dynamic field of Health Care Equipment & Services. This rivalry takes toll on the
organisation's overall long-term productivity.
CONCLUSION
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REFERENCES
Books & Journals
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