Market Research / Secondary Research / Industry Analysis On Nursing Care Facilities In Ireland

2996 words - 12 pages

Industry Analysis on Nursing Care Facilities in IrelandThe Irish Culture and History, background for nursing homesHistorically in Ireland the older generations were a part of the family unit. Particularly in rural Ireland where the eldest son would inherit the family home and would move in with his family and look after his parents. This trend has changed considerably in passing generations and at present is rarely observed. As the economy of Ireland moved from rural based to more technical and knowledge based the family unit has adapted. As people move to more urban areas and lifestyles change often there is no one in the house who can look after an elderly relative due to employment obligations. As a result nursing homes have grown in popularity. This change in the Irish family unit in addition to a growing elderly population means that the government alone cannot provide for the elderly on a long term basis resulting in the emergence of private nursing homes. Since the growth phenomenon known as the celtic tiger hit Ireland in the 90's attitudes and lifestyles in Ireland have changed again and people have more discretionary income which has resulted in the demand for more luxurious nursing homes. Although growth in the Irish economy has slowed considerably since the celtic tiger and is currently in a state of recession the population trends indicate that demand for nursing homes will remain high.In addition to the cultural shift in Ireland and the lifestyle shift that accompanied it, there is growing popularity for nursing homes due to the health sector in Ireland. The health sector in Ireland is in crisis demonstrated by hospital closures, lack of beds and ward closures. As a result there is a lack of confidence in the sector and growing dissatisfaction with public health services. This strengthens the position of private health care providers.Porters 5 ForcesIn order to take a complete view of nursing homes and the industry in Ireland we have put forward Porters 5 forces industry analysis and have looked at the substitutes available, barriers to new entrants, competition within the industry, buyers and suppliers in the industry.2.1 SubstitutesConsidering the variety in people who avail of nursing home care there are a number of substitute services available however none offer the flexibility and range of services that a nursing home can. In terms of healthcare, hospital facilities can serve as a substitute for nursing homes. However due to financial constraints and poor management within the sector often hospitals are unwilling to accept patients whom they feel do not require the specialised services of a hospital. Some residents of nursing homes are in fact patients who have been discharged from hospitals but require an interim period before they return to unassisted living. A costly alternative to a nursing home is a live-in nurse or companion. Public nurses will also make house calls to the elderly. Neither of these provide the round the...

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