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@ Poup 2 W LOCE 7 Home Z Question 2 (Total 10 points) Suppose an analyst investigates the clinical services industry from the perspective of investors of large medical groups that provide private clinical services. The analyst describes the clinical services industry as follows: i. Due to aging population, demand for private clinical services is going to be booming. This is especially true when the government is under fiscal budget constraints and cannot support increasing demand for public clinical services. ii. While the price of clinical services has been increasing, patients are relatively price insensitive because of the government's subsidies to private medical insurance. iii. While providing clinical services requires medical doctors and nurses with relevant qualifications, medical schools provide an increasing supply of medical professionals. Instead of joining a medical group, many medical doctors operate as sole proprietorships. iv. The supply of medical instruments is tightly controlled by a handful of major firms. There are almost no substitutes for those instruments. Answer the followings: a) (4 points) Which of the above factors (i), (ii), (iii), and (iv), are factors that are related to Porter's five forces? Explain your answer. b) (6 points) Based your answer in (a), use Porter's five forces framework to describe the attractiveness of the clinical services industry

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