The specific health care product or service offering I chose to explore is physical therapy. Physical therapy is a type of treatment that uses evidence-based techniques and exercises to help patients improve their mobility, strength, flexibility and overall function. Physical therapists use various modalities such as joint mobilization, therapeutic exercise, manual therapy and patient education to treat musculoskeletal injuries, neurological conditions and other medical issues.
To construct the Levels of Competition Model for physical therapy in my area I mapped out the competition based on geography as well as common factors related to this industry (Figure 1). The geographical area was an 80 mile radius from where I live in central Pennsylvania. Within this region there are five major competitors which are grouped into three tiers based on their market share: Tier 1 includes two large hospital systems with multiple locations throughout the state; Tier 2 consists of smaller independent practices that offer a variety of services across several counties; Tier 3 includes single location clinics with limited services offered within each county.