Case Study: American Academy Of Family Physicians
Thomas and Maurice (2010) describe various potential issues that can serve as barriers to entry into a particular market. A strong barrier to entry makes it difficult for a new company to enter into a market to compete against existing companies and produce a substitute product. The potential barriers are barriers from economies of scale, governmental or legal barriers, barriers of essential inputs, brand loyalties and consumer lock-in (Thomas & Maurice, 2010).
The company chosen for discussion is the American Academy of Family Physicians (AAFP). The AAFP is the national organization representing 120,000 Family Physicians across our country and territories. The function of the Academy is to provide various services to support the members and promote the specialty. The strategic objectives of the organization are advocacy, practice enhancement, education and health of the public. The Academy is made up of 54 state and territory chapters which consist of a variable number of local chapters. The AAFP is the largest medical specialty organization …show more content…
recognized.
A barrier to other organizations entering into the marketplace incorporates economy of scale.
Academy services include the production of continuing medical education (CME) for family physicians. Our AAFP CME division is the largest producer of AAFP CME prescribed credits through live courses, enduring products, journals and online activities (COCPD Report, 2014). Membership surveys list CME issues as three of the top five important services provided. Other CME providers produce CME for family physicians; however, no one else has the resources to compete to the same level. Changing rules and regulations increasingly impact the CME to maintain independence from pharmaceutical industry (Lee, 2014). The AAFP is accredited by the Accreditation Council for Continuing Medical Education (ACCME) to provide prescribed CME showing their ability to maintain voluntary standards to prevent biased
presentations.
A second barrier is based upon brand loyalty. The active member market share as of May, 2015 was 76.3%. The rate for active member retention is 94.4%, with a new physician retention rate of 89% (CMMS Report, 2015). No other organization can compete with the AAFP for services provided to the family physician members, and this is supported by the retention rates for active members. Another AAFP service is the notification to the American Board of Family Medicine (ABFM) of AAFP member successful completion and maintenance of CME for board certification.
Finally, not only is the AAFP a producer of accredited CME for family physicians, but is one of only five entities having the ability to accredit CME. The AAFP is the only entity with the ability to accredit AAFP prescribed credit, which lends itself to a potential for a barrier involving consumer lock-in. Academy control of CME providers to meet the high standards to receive AAFP prescribed credit via the accreditation process sets the Academy apart from all other medical specialty organizations.
References:
The company chosen for discussion is the American Academy of Family Physicians (AAFP). The AAFP is the national organization representing 120,000 Family Physicians across our country and territories. The function of the Academy is to provide various services to support the members and promote the specialty. The strategic objectives of the organization are advocacy, practice enhancement, education and health of the public. The Academy is made up of 54 state and territory chapters which consist of a variable number of local chapters. The AAFP is the largest medical specialty organization …show more content…
recognized.
A barrier to other organizations entering into the marketplace incorporates economy of scale.
Academy services include the production of continuing medical education (CME) for family physicians. Our AAFP CME division is the largest producer of AAFP CME prescribed credits through live courses, enduring products, journals and online activities (COCPD Report, 2014). Membership surveys list CME issues as three of the top five important services provided. Other CME providers produce CME for family physicians; however, no one else has the resources to compete to the same level. Changing rules and regulations increasingly impact the CME to maintain independence from pharmaceutical industry (Lee, 2014). The AAFP is accredited by the Accreditation Council for Continuing Medical Education (ACCME) to provide prescribed CME showing their ability to maintain voluntary standards to prevent biased
presentations.
A second barrier is based upon brand loyalty. The active member market share as of May, 2015 was 76.3%. The rate for active member retention is 94.4%, with a new physician retention rate of 89% (CMMS Report, 2015). No other organization can compete with the AAFP for services provided to the family physician members, and this is supported by the retention rates for active members. Another AAFP service is the notification to the American Board of Family Medicine (ABFM) of AAFP member successful completion and maintenance of CME for board certification.
Finally, not only is the AAFP a producer of accredited CME for family physicians, but is one of only five entities having the ability to accredit CME. The AAFP is the only entity with the ability to accredit AAFP prescribed credit, which lends itself to a potential for a barrier involving consumer lock-in. Academy control of CME providers to meet the high standards to receive AAFP prescribed credit via the accreditation process sets the Academy apart from all other medical specialty organizations.
References: