Few aspects of the American healthcare system provoke more frustration than prescription drug pricing. When patients skip doses of insulin to save money or pay $500 for a medication that costs a fraction overseas, it raises a fundamental question: how can something essential be so unaffordable in one of the richest countries in the world? […]
Tag: barriers to entry
In a typical market, supply and demand work together to determine price and quantity. More supply brings prices down. More demand raises prices. Consumers weigh costs against utility and make rational choices accordingly. In healthcare, these normal rules break down. The textbook model of perfect competition — the kind students see in Economics 101 — […]
THE advent of blogging during the late 1990s significantly lowered the barriers to entry in the publishing industry. Any person with a computer, a blogger account and a half baked idea could get into the industry, and they did. To shake things up further, the advent of blogging reduced the cost of distribution and the […]
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Understanding the Competition
“Know your [competition], know yourself and you can fight a hundred battles without disaster.” ~ Sun Tzu YOU are running a company, advising companies or would one day like to be. A company needs to understand its competition, and here are 11 points to help you do that. 1. Identify the competition Who are the […]
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Barriers to Entry
You may want to launch a new product, start a new business or enter a new market. What’s stopping you? BARRIERS to entry are costs that must be paid by a new entrant but not by firms already in the industry. Barriers to entry have the effect of making a market less contestable and allow […]
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Porter’s Five Forces Analysis
The Porter’s Five Forces framework is used to determine the competitive intensity and attractiveness of an industry HARVARD Business School professor Michael Porter, in his 1979 book Competitive Strategy, developed the Porter’s Five Forces. The Porter’s Five Forces framework is used to determine the competitive intensity and attractiveness of an industry. Attractiveness in this context […]