A Process for Service Area Competitor Analysis

Service area competitor analysis is a process of understanding the market and identifying and evaluating competitors within that market. Together with the results of the general environment, health care system, and service area trends and issues, service area competition will be analyzed and the results synthesized into the strategic issues facing the organization. The synthesis is an explicit input into the formulation of the organization’s strategy. not every potential competitor in a service area is of concern because of targeting differences, posi- tioning differences, quality differences, pricing differences, and so on.

As an overview of the service category and service area, plastic surgery repre- sents a highly competitive and low market share industry, especially for cosmetic procedures that are rarely covered by health insurance. reconstructive plastic surgery (required because of accidents and disfigurements, birth defects, ravages of disease, and so on) is often covered by insurance; however, reimbursement rates have been declining. Typically, a number of board-certified plastic surgeons have offices in any given service area. These physicians compete not only among themselves; but also against emergent niche providers who are often board certi- fied in a specialty other than plastic surgery – physicians in ophthalmology (eye), dermatology (skin), eenT (eye, ear, nose, and throat), dental (teeth and jaw), and OB/gYn (women’s reproductive system). 

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