Mary is asked to develop a service area structural analysis using one of the selected service category and service area from Cottage Senior Living, and the Porter's Five Forces Competitive Framework. Mary must identifying one threat and demonstrate or explain a rationale for the threat and assess the threat as high, low, or medium. Also, assist with Mary with explaining what the analysis suggests for Cottage Senior Living within the long-term care industry.

References

1. Cottage Senior Living Case Study, https://bcs.wiley.com/he-bcs/Books?action=mininav&bcsId=11121&itemId=1119349702&assetId=450378&resourceId=43941&newwindow=true
2. The Cottages https://cottageassistedliving.com/
3. Ginter, P., Duncan, J., & Swayne, L. (2018). Strategic management of health care organizations (8th ed.). Hoboken, NJ: John Wiley & Sons, Inc. ISBN 9781119349709

Step 2: Conduct Service Area Structural Analysis Harvard's Michael E. Porter developed a "Five Forces" framework for external analy- sis through an examination of the competitive nature of the industry. Porter's frame- work has been applied to a variety of industries; however, because of the nature of competition in health care, it is more appropriate to apply the framework more nar- rowly to the service category/ service area. The use of Porter's Five Forces in health care can be referred to as service area structural analysis. A service area structural analysis assesses the attractiveness of an identified geographic region for a product/ service category. Service area structural analysis provides considerable insight into the attractiveness of a service category in a service area and its competitive dynamics. Porter suggested that the level of competitive intensity within an industry is the most critical factor in an organization's environment. In Porter's model, inten- sity is a function of the threat of new entrants to the market, the level of rivalry among existing organizations, the threat of substitute products and services, the bargaining power of buyers (customers), and the bargaining power of suppli- ers.# The strength and impact of these five forces must be carefully monitored and evaluated to determine the viability of the service category and may be used to assess the changes likely to occur in the future. As illustrated in Exhibit 3-2, Porter's industry structural analysis can be adapted to service areas to understand the competitive forces for health care organizations. EXHIBIT 3-2 Service Area Structural Analysis: Forces Driving Service Area Competition Potential Entrants Threat of New Entrants Bargaining Service Area Bargaining Power Competitors Power of Suppliers of Buyers Suppliers Buyers Rivalry Among Existing Firms Threat of Substitute Products or Services SubstitutesAssignment 2.2: Five Forces Analysis Name: Five Forces Threat of New Entrants Intensity of Rivalry Among Existing Organizations Bargaining Power of Customers Bargaining Power of Suppliers In 250 words or less, describe what the analysis suggests overall for Cottage Senior Living within the Iongten'n care industry