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A Process for Service Area Competitor AnalysisService area competitor analysis is a process of understanding the market and identifying and evaluating competitors. Together with the general and health care trends and issues, service area competitor analysis must be synthesized into the strategic issues facing the organization. The synthesis will be an explicit input into the formulation of the organization’s strategy. As illustrated in the strategic thinking map in Exhibit 3–2, service area competitor analysis begins with an understanding and specification of services or service categories the organization provides to its customers. Next, the service area must be specified for the various services or service categories. Then the service area structure or competitive dynamics should be assessed. Competitors providing services in the same category in and around the service area must be analyzed. Each of the organizations can be positioned against the important dimensions of the market and assessed as to their likely strategic moves. Finally, the results of the analysis must be synthesized and implications drawn. These conclusions will provide important information for strategy formulation.
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