How competitive is the health care industry? Is there a need for monitoring the activities of rivals? How much attention should healthcare organizations devote to monitoring competition?


The health care industry is very competitive and the need for monitoring the activities of rivals should be the prime concern for the healthcare marketers. For heath care marketers it is essential to identify and assess their competitors very accurately. The threat is very high for healthcare marketers from their competitors. It is difficult to closely monitor the actions of rivals and proactively address developing issues for healthcare marketers.
If marketers fail to identify competitors, they inadvertently afford the unidentified rivals with the strategic advantage of operational secrecy. Because of that, the competitors secure the market share. They are not defining the competitive field and make the error in assessing the competitors.
Donald Lehmann and Russell Winer developed a diagram that depicts levels of market competition. There are four competitive levels like product form, product category, generic and budget in the diagram. These four levels are depicted by for centric circles that surround the product under evaluation. The inner level of the circle represents more competitive products than outer levels that represent less comparable products.
The health care marketer should closely monitor the competitors and attention required should be a top priority for them. Healthcare marketers can simply assess the competition by following steps.

  •  Identify the product offering to be evaluated
  •  Construct the levels of competition diagram,
  • Identify product form, product category, generic, and budgeted competitors, and
  •  Place the identified competitors on the diagram accordingly.

These resulting levels of completion diagram should be then used to gain insight into product competition. So, health care marketer should be attentive to monitor competitive activity.