Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Research Paper:
Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.
The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and Wolfe 101()
The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The number of consumers shows the customer base and changes in demand for health insurance while the average cost of providing medical cover shows any cost savings that can be done. The last factor which is pricing shows the evolution of the industry and how it affects profits and the cost of health insurance cover for consumers.
Pricing strategy of competitors
The health care industry in general is based on value-based competition since as earlier discussed pricing does not play a major role in influencing the market share of a company. The quality of premiums provided and any improvements in client processes of claims are the major factors that influence consumer demand and lead to increased consumer satisfaction. Rivers and Glover (634)
argue that each of the consumers in the health insurance industry is not concerned on price only. They are also concerned on other factors such as quality of cover, communication, delivery of services and other factors. These are the major drivers of competition. Therefore competitors use value-based pricing where the price is determined by the value of the service being provided. A service that has more value-added services will have higher pricing and vice-verse since the price creates an image of the product or service being of higher value. This pricing strategy also enables the competitors to keep their medical loss ratio low since with more value-added services, the companies will need to payout more to the insured parties.
Suggested pricing policy
For the business chosen, the suggested pricing policy is the value-based pricing policy which is in use by the competitors. The major reason for this suggestion is that in this oligopolistic industry, price does not play a major role in influencing the demand and market share of the company. This pricing policy should also be coupled with price lining where the company should provide different levels of insurance coverage at different pricing. This will enable the company provide its consumers with a wider variety of products or services from which to choose to enable them gain market share.
Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.
Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.
Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.
Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.
Frasco, Gregg P. "The Kinked Demand Curve When Demand Shifts." The Journal of Economic Education 24.2 (1993): 137-43. Print.
Maskin, Eric, and Jean Tirole. "A Theory of Dynamic Oligopoly, Ii: Price Competition, Kinked Demand Curves, and Edgeworth Cycles." Econometrica 56.3 (1988): 571-99. Print.
Rivers, Patrick a., and Saundra H. Glover. "Health Care Competition, Strategic Mission, and Patient Satisfaction: Research Model and Propositions." J. Health Organ Manag 22.6 (2008): 627 -- 41. Print.
The Commonwealth Fund. "Obamacare Medical Loss Ratio Saved $1.5 Billion in 2011: Report." 2012. December 11th 2012.
"Market Model Patterns Of Change" (2012, December 11) Retrieved October 25, 2016, from http://www.paperdue.com/essay/market-model-patterns-of-change-77021
"Market Model Patterns Of Change" 11 December 2012. Web.25 October. 2016. <http://www.paperdue.com/essay/market-model-patterns-of-change-77021>
"Market Model Patterns Of Change", 11 December 2012, Accessed.25 October. 2016, http://www.paperdue.com/essay/market-model-patterns-of-change-77021
Market Model Patterns of Change Market Model Pattern of Change The market model industry I research on is the rental movie industry, which the Blockbuster video was the dominant product. This industry has undergone through gigantic market change over many years. Hollywood video is the national competitor; however, they often compete with the local and regional movie rental industries. The use of the new technology has significantly led to the competition among
Market Model Patterns of Change Sir/Madam, answers attachment page. But write a APA format, citing quotations a APA format. answers fits 3 pages. The operating system software industry that was dominated by Microsoft was a monopoly till quite some years back when other players came into the market and disrupted the monopoly. These players include Linux with their various operating system software such as Redhat and Ubuntu and Apple with their Macintosh
Market Model Changes The medtech, or medical technology, industry is a large and intensely competitive industry that produces highly innovative medical devices for hospitals and other healthcare facilities in the effort to save lives and improve health for patients (Research, 2012). It is spread across different segments including, cardiology, oncology, neuro, orthopedic, and aesthetic devices. It relies largely on aging baby boomers, high unmet medical needs, and increased incidence of lifestyle
Market Behavior One industry that has seen a shift in the market model is the smartphone industry. During the mid-2000s, this industry was an oligopoly, populated basically by two firms that emerged from the old PDA market. Palm and RIM (Blackberry) operated as a duopoly, catering primarily to business customers with early smartphones. Apple joined the industry with the iPhone, and was quickly followed by a number of other players. The
Market Orientation of Medical Diagnostic Units Dissertation for Master of Health Administration i. Introduction ii. Objectives iii. Description iv Administrative Internship v. Scope and Approach vi. Growth vii. Methodology viii. Hypothesis ix. Survey Questionnaire x. Research Design xi. Observation and Data Presentation xii. Test provided xiii. Analysis of findings Marketability of Patient Satisfaction Importance of Employee Satisfaction xiv. Conclusions and Recommendations xv. Bibliography xvi. Notes xvii. Appendices Market Orientation of Medical Diagnostic Units
Market Patterns One industry that has shifted in the past few years in terms of its structure is the smartphone operating system market. A few years ago, most of the early smartphones were based around proprietary operating systems. Palm and Blackberry dominated the market. Apple joined the industry with the introduction of the iPhone, but more recently other firms have entered the market as well, including Google (Android), Windows, Symbian and
Change Management After recession, many employers expected their employees to inject more hours into work than they did before the recession. This trend is expected to continue in the near future because employers believe that working extra hours increase productivity. This can however, be dangerous in the long run because it affects employee well being and retention (Lepore, 2011). Organizations that pressurize their employees to work extra hours to increase productivity