The analysis has been taken from a range of

The Porter’s Five Forces
approaches to the Asiri Hospitals.

This is to analyze not only
the competitive advantage in the health care sector in Sri Lanka but also the
highlight the factors that influence the level of competition within the health
care industry in Sri Lanka.  Data for this
analysis has been taken from a range of secondary sources.

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1.     
Inter
rivalry.

Government hospitals in Sri Lanka provide 73%
of the hospitals and 93% of the available bed capacity in the country. When we
consider the main city Colombo, there are about 10 larger public hospitals
providing services to patients. However, with the larger number of patients
approaching from all over the country to get services available merely in
Colombo public hospitals, there is huge waiting lists maintain by them. This is
the main reason to boost privet hospitals in Sri Lanka and their steady growth
in the over the period of time.

If a person become sick,
there are numerous clinics and hospitals available in Colombo region where
individual can go to. For private health care in Colombo, the rivalry is very
intense for among main hospitals due to the fact that within the Colombo area,
there are many hospitals and clinics available for patients. Durdans Hospital,
Nawaloka Hospital and Lanka Hospitals are the main competitors to Asiri
Hospitals in the region. There is no price competition between the private
hospitals as most of the services are the same prices or covered by insurance.
And also the consultant’s professional charges will be the same in all
hospitals he or she practices. Therefore, prices for the main surgeries and the
investigations does not have a huge difference. However, with the competition
some of the smaller hospitals like Royal Hospital, New Delmond Hospital and
Hemas Hospital try to attract more patients by giving less prices compare to
main giants. This will impact less when we consider the service provide by the
main private Hospitals.

Recently Nawaloka Hospital
in Colombo has increased their bed capacity and also expand the parking lot
which will be attracting more patients while giving them a convince to access
their services.  Durdans Hospital in
Colombo also expanded their parking lot earlier in 2017 to a new building where
their patients finds more convenience to access to the hospital.

2.     
Entrants.

The healthcare sector in Sri
Lankan is highly regulated by the Health Ministry and regulatory approval is
required to set up a private hospital. Moreover, huge initial cash investment
of establishing supply chain network requires huge amount of money. Therefore,
due to high capital cost, threat of new entrants impacting on industry is low.

3.     
Substitutes

Substitutes or alternative
health care providers include; government hospitals, Technology as substitute
to private hospital care, reduction in demand for private health services, Day
care hospitals and channeling centers, Ayurvedic treatment centers, Unani
medical treatment places and Homeopathic treatment centers. The  amount of individuals who believe and
practice this type of traditional medicine in Sri Lanka is very high based on
beliefs and less side effects.

4.     
Bargaining
power of buyers

People get sick and suffer
from certain diseases time to time whether the economy is good or bad.
Therefore, bargaining power of buyers is very limited. In healthcare industry
patients and healthcare professionals are seek the best health service and less
sensitive to pricing.

5.     
Bargaining
power of supplier

In Sri Lankan health care
industry having a strong network of healthcare professionals who refers to
privet hospitals is the main source of generating income. Therefore, healthcare
professionals  are having strong
bargaining power with privet health care providers.

When it comes to consumable
medical supplies, , bargaining power of suppliers are high since private
hospitals are greatly depend on suppliers and specific product types. For an
examples cardiac department may depends on a stent which is only coming from
German company. Therefore, individual supplying companies can usually having
some control over prices and supply conditions.

Most of the leading health
care providers in Sri Lanka has become increasingly depend on advancing
technology by way of high capital cost equipment which is used for diagnostics
and treatment of medical conditions. Moreover, reagents used in this particular
machine may come from one source. For an example Asiri Hospitals having the
only PET/CT scanner in Sri Lanka and the radiopharmaceuticals required to
administer to patient in order to conduct the imaging depend on one Indian
company. This is mainly due to required radiopharmaceuticals are not available
in Sri Lanka and also India is the closest country to provide the radioactive
isotopes.

Hence, medical equipment
have the potential to impact on the industry in a negative way.

3. Vision, Mission, Corporate objectives and
Values

Working on a vision To be
a leading healthcare provider in south Asia with highest quality of clinical
standards, Asiri group of hospitals strongly believe that being the
largest private healthcare conglomerate in the land. Asiri Hospital’s
collective bed strength, technological innovations and medical expertise being
the best in the country, coupled with the country’s best diagnostics specialty.
Asiri Health defines the highest clinical standards with the Group being
regarded as an iconic role model in the healthcare in Sri Lanka.  Their mission is to care for and improve the
quality of human life, through the provision of ethical healthcare solutions
together with cutting–edge technology is providing superior health care service
to the public.

Asiri Laboratories has reiterated
its place as the market leader in the country and is the most sought after
service provider to the entire healthcare industry. It is truly the country’s
largest, fastest, most technologically advanced and most widely spread
laboratory.

The Central Hospital had
successfully completed the Sri Lanka’s first ever bone marrow transplant few
years back and also contains Interventional Cath Lab, the very first Biplaner
laboratory in the country. Moreover, the hospital now offers interventional radiology
using minimally invasive techniques to diagnose and treat various pathologies.
The Hospital has also asserted its position as Sri Lanka’s premier spine and
brain center, having added a highly technologically advanced neuro-navigation
system and being accredited as an International Examination Center for the
prestigious Royal College of Surgeons.

Asiri Surgical, on the other hand
having the state of the art technology performing at high levels of accuracy
and speed providing quick and detailed diagnoses.

Values

Caring with a human touch

Respect for all stakeholders

Innovation and forward focus

Caring for society

Caring for our employees