Discussion 2 Peer Responses
Peer 1
(A) When it comes to launching an entirely new service, there are bound to be obstacles for medical staff. He should buy the necessary instruments, which are a bit expensive. Also, he will force acceptable and qualified staff to work with him. The only true head of affairs is responsible for the initial finances of the business. Some barriers to exit include; when departure, some patients should be noted various services, which isn’t forever a straightforward task. Another barrier to exit is that the instrumentation that was purchased at a high value is sold-out at a less expensive value.
(B) Fitness centers are sometimes very expensive. This includes value for trading buildings, but also for the cost of buying instruments. The price of insurance is another concern for newcomers. There is conjointly a slim chance that the club attracts and retains gifted staff. Some exit barriers: Clients are notoriously difficult to get fired, especially when clubs have to leave. The organization should deliver services following the terms of the agreements.
(C) Tertiary hospitals provide comprehensive services, which can make it difficult for hospitals to meet restrictive needs throughout the admissions process. Establishing a coronary artery bypass graft program may well be troublesome in terms of enhancing care criteria for sufferers of a circulatory heart condition. Competitors may also offer the same program, thus creating a troublesome barrier to providing equivalent services. In this case, some of the barrier exits reflect the fact that there may still be patients who need regular check-ups and visits, allowing the hospital to continue serving a few shoppers until the peak. This constrains the choice to go away.
Peer 2
The barriers of entry is defined as “factors that can prevent or impede newcomers into a market or industry sector, and so limit competition” (Hayes, 2022). These barriers are also the conditions that a company must overcome to be able to accomplish a business opportunity or task they are working towards.
According to Berkowitz (2017), barriers of entry typically come down to cost acquisition of new technologies which is the total expense that is incurred when purchasing or starting something new. The barriers of entry for these examples would also come down to the cost of capital which “represents the return a company needs to achieve in order to justify the cost of a capital project, such as purchasing new equipment or constructing a new building” (Hayes, 2022). If the tertiary hospital is funded by the government, then the cost of capital would not be a barrier for the hospital, however, the hospital can face challenges legally by the hospital complying with all legal provisions on arrival.
A main barrier to entry for the physician starting their own practice would be the cost of starting up their own business due to it being very expensive having to purchase all the equipment and hiring the right staff that is knowledgeable and licensed to treat their patients. Cost goes along with section B as well due to gym equipment being very expensive and the company will need to purchase insurance to cover their business in case injuries occur on site. The organization will need to cover all necessary terms and conditions in a legal agreement prior to anyone joining the gym as well.