Niche strategies in the healthcare industry

Abstract

This paper examines niche strategies in the healthcare industry. I begin by discussing productivity trends in large firms. In order to understand trend shifts in productivity from a focus on output to a focus on input, I examine the competitive strategy frameworks of Duncan Simester of MIT, and Michael Porter of Harvard, and then apply these frameworks to the healthcare industry. That foundation allows me to develop the framework for a niche strategy. There are two input reduction strategies, and I discuss each one based on the niche strategy framework. I also examine the role of healthcare start-ups and compare them with startups in other industries. Finally, I compare the growth strategies of incumbent large firms and start-ups in the healthcare industry.