Thinking: External Environment Sample Essay

Thinking: External Environment Sample Essay.

Thinking: External Environment Sample Essay

Thinking part 2 External Environment

University of Phoenix


May 4, 2020

Thinking part 2 external environmental


MedStar Health care facility has existed for over 20 years. In those 20 years, MedStar has shown growth, and currently, it owns 120 entities include both hospitals and research centers. On top of that, the facility is among the best-employing organization that values professionalism in Maryland. MedStar Health care facility has recorded tremendous growth, and its development has been influenced mostly by the general external healthcare factors. 

Assessing the most important factors in MedStar Health’s external general environment

One of the most significant external factors that have facilitated the growth of MedStar Health is a patient demographic factor. Most patients who rely on MedStar’s services are American from Maryland State. In 2011 MedStar was reported to be one of the employers with most of its employees being people from the region. Therefore, most physicians in the MedStar Hospitals were able to understand the language and culture of most patients who sought medical attention in MedStar Health. So, since most of the MedStar Hospital physicians are from the region, they can communicate better with patients from the area. Such a factor enhances trust between patients and medical workers, thereby influencing the growth of the MedStar Health facility at large. Moreover, the medical doctors in any facility should be trained to adjust their communication based on the demographic variables of every patient.

MedStar Health hospitals have corporative clients. MedStar Health Care facility has the most professional employees in the region. Most people seeking services from an organization want to be served by the best in the company. What affects most health care facilities is that some patients do not trust the medical doctors in those organizations. MedStar health professional medical workers are trained to involve clients in their medical history so that they can provide the best treatment. Whenever patients cooperate with the quality of medical services improve, and for the patients to cooperate, they have to have faith in the medical doctors and physicians (Mosadeghrad, 2014).

Another factor that has affected the progress of the MedStar Health facility is the health care system. First, MedStar is a non-profit organization, and therefore, MedStar Health Hospitals offer quality services at an affordable cost. The medical insurance providers have enabled many MedStar Health’s clients to afford medical services in the facility. Because of the health care system, the company can manage and grow itself.

Identifying and assessing one or more of Five Forces that are most important in driving competition in MedStar Health’s external industry environment

Five forces influence the intensity of competition in a given market. The five points of competition also determine the attractiveness of a market. The force factors that are important at driving MedStar Health’s competition in its external industry environment are three of them. These three of the five forces include buyer power, competition rivalry, and the threat of new entry. 

Buyer Power

Typically, buyers determine the prices of services and products in a business. However, these prices are determined by the number of buyers in the market. Also, the switching of buyers from one supplier to the other determines how an organization has to handle the competition. On the other hand, few significant clients of an organization have the power of dictating terms of an organization that is competing (Varelas and Georgopoulos, 2017). MedStar Health organization depends on the buyer power force to manage competition within the healthcare industry in the Maryland region. Buyer power is a force that can affect the competition of any business, including the healthcare industry. In case MedStar does not meet its customers’ demands, other private healthcare organizations within Maryland State are likely to affect their business. For instance, MedStar has to meet the needs of their most precious and powerful clients to keep itself from losing them to other healthcare providers in the region.

Competition rivalry 

According to Varelas and Georgopoulos (2017), competitive rivalry involves many organizations or businesses that offer undifferentiated services and goods within the same area. When many companies or businesses offer undifferentiated products or services within a region, they lead to reduced market attractiveness to one or more of the companies within the area. Currently, MedStar has less competition rivalry from other health care facilities in Maryland. The company still dominates in the health sector in the region, and it is still working to keep itself firm for a long time. So, competition rivalry is among the five forces of competition that are keeping MedStar Health’s competition in its external industry environment.

The threat of new entry

Profitable markets attract invaders who later undermine profitability in that market. For the market incumbents to overcome new entry threats, they have to implement durable solutions that will keep them strong. Moreover, other factors like government policy, capital requirements, patents, and economic scale, play a role in preventing the invasion of new entries (Gürel and Tat 2017). Therefore, new entries in MedStar Health’s external industry environment can drive it to the competition. More established healthcare providers indeed can compete with MedStar in providing healthcare services. 

Identifying and assessing the specific key competitors to MedStar Health organization in the external competitor environment from an external perspective

MedStar Health Organization faces competition from over eight private and public healthcare providers. Some of the rivals in the market includeLifeBridge Health, Adventist Healthcare, Kaiser Permanente, and many others. For instance, Lifebridge Health organization is the number one competitor of MedStar Health. This competitor has its headquarters in Baltimore, Maryland. However, the company has fewer employees than MedStar Health, which has invested in its staff to provide quality services to as many clients as possible (Comparably Website, 2019).

Adventist Healthcare facility is also a non-profit organization like MedStar Health. The company is located in Gaithersburg, Maryland, just like MedStar Health. Adventist Healthcare has over 6,000 employees and serves over 400 000 people in the Maryland community. On the other hand, Kaiser Permanente is a healthcare facility that is based in California. According to Comparably Website (2019), this healthcare organization has over 22, 000 physicians, and around 217 000 employees. Kaiser Permanente also provides almost the same health care services as MedStar.


MedStar Health organization is growing fast and becoming among the most reliable health care facilities in the US. The company’s ability to grow has been accelerated by various factors in its external environment market. In conclusion, MedStar Health will have to withstand the competition for it to keep serving everyone who needs medical services. MedStar Health has a promising future in serving the people of Maryland and beyond.


Comparably Website. (2019, July 18). MedStar Health Competitors. Retrieved April 30, 2020, from

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research10(51).

Mosadeghrad, A. M. (2014). Factors affecting medical service quality. Iranian journal of public health43(2), 210.

Varelas, S., & Georgopoulos, N. (2017). Porter’s competitive forces in the modern globalized hospitality sector–the case of a Greek tourism destination. J Tour Res18, 121-131.

Browse more products here

Order Here

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.