Google and Oracle in Healthcare

Google and Oracle in Healthcare

Introduction

According to the study made by (Williams Stephen, 2007) healthcare industry deals with the goods and services to treat patients with care within the economic system. Healthcare services are now mobile and different companies are providing healthcare services around the world. Many companies are operating in this sector therefore a healthy competition is taking place among the companies. Now days, it is one of the thriving and become world's largest industry. It is now contributing to the GDP of the many countries to a larger extent. The industry comprises of hospitals, health insurance companies, companies dealing in biotechnology etc. With the advancement of technology the industry has now implemented many information systems.

There are various companies which are operating in this regards. Few are Oracle, Microsoft's Health vault, Dossia and the Open Source Invido project. Google health was also in the list of the competitors but due to some issues the healthcare service of Google is closed in 2011. The discussion below reflects the major issues of the industry and presents an effective business strategy in order to remain stable in the market and to compete internationally in an effective manner. The target organization is Google while the comparison of the firm is dome with Oracle. The analysis of the both the company reflects the performance of the companies in healthcare services.

Discussion

Porter's Five Forces

(Karagiannopoulos et.al, 2005) in his study presented the analysis tool of external macro factors which influence on business. The tool is called Porters' Five Forces which analyze the external factors including threats, power of customers etc.

Threats

For any local and international company there are some internal and external market threats. To run a successful business a company should aware all of these threats.The threats for healthcare industry are high. Like for the industry of biotechnology the main bounding is cash investment for research and development. This is an emerging field in medical that's why research and development is necessary in this sector. In the same way for health insurance companies the most important barrier are regulations requirements of state. New insurance companies are reluctant to enter into the market due to heavy cost which is required to compete with the existing insurance companies. Like insurance companies hospitals are also face same barriers of government regulations as the government does not allow opening a new hospital easily. United Sates has a very strict policy to open a new hospital. It also reduces the possibility of creation of monopoly of hospitals in a specific area. Google healthcare had major threat of privacy as their competitors like oracle provides strong privacy to their customers. But still there are some threats of oracle healthcare like security concerns for healthcare, regulatory concerns and deployment of technology. (Porter, M. E,2008).

Competitors

The competition in the industry of healthcare is very strong, among various pharmaceutical industry and insurance companies. The competition among hospitals is less due to the reasion of less avianlablity of hospitals in certain ...