Question: Five Forces Exercise: Consider the model and the data for analysis. The nursing home competitive market in Poughkeepsie, NY Industry competitors: Five nursing homes with

Five Forces Exercise: Consider the model and the data for analysis. The nursing home competitive market in Poughkeepsie, NY Industry competitors: Five nursing homes with 1200 nursing home beds Potential new entrants: one or two possible new nursing homes Buyers: The hospitals discharge 960 individuals to nursing homes annually. Substitutes: 600 substitute beds (assisted living, independent living) and 100 community alternatives (medical model adult day care) Suppliers: There is one lab There are two major physician groups serving the community.

How would you describe the competitive dynamics? Would you want to enter this market, why or why not? If operating in this market, would you want to stay in this market or leave it, why or why not?

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