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Issue:

Business

 

Written by:

Garrett C

 

Date added:

September 9, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 689

 

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1904 times

 

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Yet generally, substitutes in the health insurance industry are limited to a select few. In the insurance industry there is a low threat of substitutes. Within the health insurance industry there is an advantage for companies focusing on particular areas, usually allowing them to gain a competitive advantage...
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This advantage depends entirely on the size of the niche, and on whether or not there are any barriers preventing other firms from entering. (Investopedia) For the health insurance industry, there are a low number of substitutes that would be able to pose as a real threat to its industry. The definition of substitute products, the health insurance industry is competitive force, as they could take away demand or tie up those customers who choose to use the substitute instead of the main product; one cannot generally label a product as a substitute for health insurance...
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