Lehmann & Winer’s Levels Of Competition Model

 

Lehmann & Winer’s Levels of Competition Model is a helpful tool to assist you in identifying and understanding the competition. Identify one health care product or service offering available within an 80-mile radius of where you live. Do some research to learn more about the specifics of the product or service, and then construct a Levels of Competition Model for the product or service.

Then, please respond to the following:

In the discussion, share a description of the Levels of Competition Model you created (or an image) and provide an explanation of what you learned from creating the model.

Sample Solution

Direct Competitors:

  • Kenyatta National Hospital
  • Aga Khan University Hospital
  • Nairobi Hospital

Indirect Competitors:

  • Clinics and dispensaries
  • Traditional healers
  • Self-care

Barriers to Entry:

  • High capital requirements
  • Stringent regulatory requirements
  • Need for specialized expertise

Bargaining Power of Suppliers:

  • Suppliers of medical equipment and supplies have some bargaining power, but Avenue Healthcare has a strong position due to its size and reputation.
  • Suppliers of pharmaceuticals have less bargaining power due to the availability of generic drugs.

Bargaining Power of Buyers:

  • Buyers of healthcare services have some bargaining power, but Avenue Healthcare has a strong position due to its reputation and the limited availability of high-quality healthcare services in Kenya.

Threat of Substitute Products or Services:

  • There is a low threat of substitute products or services, as Avenue Healthcare provides a wide range of healthcare services that are not easily replicated.

Threat of New Entrants:

  • The threat of new entrants is moderate, as there are some barriers to entry, but the Kenyan healthcare market is growing rapidly and there is room for new providers.

Overall, Avenue Healthcare is a well-positioned company with a strong competitive advantage. The company’s main challenges are the high cost of healthcare in Kenya and the increasing competition from other healthcare providers.

Here are some additional insights that I gained from creating the Levels of Competition Model:

  • Avenue Healthcare is a large and well-established company with a strong reputation.
  • The Kenyan healthcare market is growing rapidly, but it is also becoming increasingly competitive.
  • Avenue Healthcare needs to continue to invest in new technologies and services in order to stay ahead of the competition.

I hope this information is helpful. Please let me know if you have any other questions.

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