Malaysian health care is known all around the world because of the service offered by its private medical Center. As the technology is developed all around the country, the private health care and medical Center are actually benefiting from it. With this high development, Malaysia health care is attracting patients and tourist all around the world.
According to the 2011, Malaysia also has an extensive network of rural health clinics and villagers in remote regions today have access to modern healthcare with referral facilities. The improvement to healthcare facilities in rural areas of Malaysia has been quite remarkable in the past few years.”
Malaysia private hospital is required to be licensed under the Private Healthcare Facilities and Services Act 1998. The country has several private health care institutes and attracts tourism from overseas.
Pantai Medical Centre Bangsar known as Pantai Hospital Kuala Lumpur has opened it door in 1974 as 68 bedded hospital. It was one of the first private hospitals to serve Malaysian community. With the development of the science and technology, Pantai has expanded its network with 9 hospitals. The hospitals are located around the states:
  • Pantai Hospital Ayer Keroh
  • Pantai Hospital Sungai Petani
  • Pantai Hospital Cheras
  • Pantai Hospital Ampang
  • Pantai Hospital Klang
  • Pantai Hospital Penang
  • Pantai Hospital Batu Pahat
  • Pantai Hospital Ipoh
  • Pantai Hospital Manjung (Pantai, 2010)
However, during all those year Pantai hospital has been the greatest quality health care to its and patients and develop its facility with new specialist. The Pantai hospital Kuala Lumpur (PHKL) which is the main Centre is offering 150 specializations with 332 beds followed by 160 doctors and 867 employees. It has received award of Centre of excellence.

1.0.Michael Porter’s 5 Forces Analysis1.1.Bargaining power of BuyersThe power of the buyers in Malaysia health care is very strong due to the number of competitor. As explain previously, Malaysian count a large number of private hospital as well as public. This actually play big role in the bargaining power of the customer. The customer in here also known as the patients are looking for the best quality care at a lower price. Public sector is controlling the price while the private is controlling the quality. As we know, most the customer will be looking for the price before the quality, in other hand the private’s hospital will have some difficulty to compete with public.
For the case of the Pantai hospital with its 9 branches offer promotion on Chinese new year for any test during this period and for every customer holding the Jaya Jusco Privilege card is enjoying a discount of 10%. Besides that, the Pantai hospital is in alliance with several assurance companies. This type of advantage attracted most of the customer to switch from other hospital. Pantai Hospital is one the famous in Malaysia due to 9 branch all around the state with its 332 beds and it is 150 specializations. However, the hospital has been helping citizen heath by natural disaster. According to Camoens.A 2011, “There is more good news for C. Muniandy and his wife P. Vijayakumari, whose home was destroyed in a fire a day before she was due for surgery. The Pantai Hospital here has offered to absorb the total cost of her surgery.”

1.2.Bargaining Power of Suppliers

Like many industries, healthcare is increasingly turning to IT to improve its effectiveness and efficiency. However, this is not an easy undertaking. It poses many hurdles and challenges in areas such as interoperability, privacy and business process pressure, just to name a few.
Compete on delivering unique value over the full cycle of care
  • Base strategies on creating unique value for patients
  • Focus on cycles of care rather than narrow product usage
  • Sell not just products, but provider and patient support
Demonstrate value based on careful study of long-term results and costs versus alternative therapies
  • Use evidence of long-term clinical outcomes and cost to demonstrate value compared to alternative therapies
  • Conduct new types of long-term comparative studies in collaboration with providers and patients
Ensure that products are used by the right patients
  • Increase the success rate instead of maximizing usage
  • Target marketing and sales to minimize unnecessary or ineffective therapies
Ensure that products are embedded in the right care delivery processes
  • Help providers to utilize products better and minimize errors
Build marketing campaigns based on value, information, and customer support
  • Concentrate marketing efforts on value, not volume and discounts
Offer support services that add value rather than reinforce cost shifting
  • Support provider efforts to measure and improve results at the medical condition level.


1.3.Threat of SubstitutionIn the health care industry, threat of substitute can’t be very high because the substitution isn’t based on the product production but the services offered. The patient has stop using traditional medicine but prefer going to hospitals. Competition is made due the service offered by the other hospital. Pantai hospital known for its facility and the different specialization, could compete easily. The services offered are considered by on the best. It also attracted overseas patient. This builds a barrier to the current and the competitor.
1.4.Threat of New Entrances
In order to enter a market, company should take into consideration the barrier made by its new competitor and for the companies should be aware for attractiveness reduction of customer. Health care industry is one the harder market to entire because it needs a large investment and a strong marketing in order to absorb the trust of the customer. However, Malaysia private healthcare industry requires a license under the Private Healthcare Facilities and Services Act 1998.
In the case of Pantai hospital, new competitor won’t really affect its market because it is holding on the larger number of beds and control a large number of specializations. In order for a new healthcare company to open and be able to compete with others, need a very high capital and a strong brand name.

1.5.Rivalry Among existing competitorsA large number of rivalry in the same industy is increasing the competition. The malaysian healthcare industry keeps on developing every year and attracted thousand foreigner patient as defined by the Business Monitor Internation ltd 2010. With a very large number of private hospital all over the country, the competition among the hospitals has as well increase. This augmentation competition is attracting more medical tourism. In order word, each hospital is cutting the price to actually attract their customer. This type of strategic create an exit barrier for the new competitors because they can change the production of product or focalize on other speecilazation. The health care industry is very dangerous market because small private medical centre or hospital has to keep running their business in order to loose their profitibility.
Pantai hospital, as explain previously is one of the large private hospital and it is very hard to compete with it. In order to keep, a very high ranking, it actually promoting and offering differente type of discount and create alliance with assurance company. However, patient are coming from indonesia, Europe, oversea to actually benefice the prices offer by Pantai Hospital.(Business Monitor international ltd 2010)