Marriot

Industry Analysis 1. The threat of new entrants into the senior housing industry is low and not a major threat to established companies in the industry. One major barrier to entry is the large amount of capital needed to build or purchases housing communities and to provide trained personnel such as managers and nurses to fill them. Product differentiation in the industry includes different types of living accommodations such as independent living, assisted living and special …

…is dominated by a few large firms. Also the industry is currently experiencing quick growth to accommodate the increasing demand for senior housing, which tends to lower rivalry. High fixed costs are also associated with the industry increasing rivalry. Some major companies are now providing a fee-for-service basis to reduce costs and residence fees. Diverse competitors tend to lower rivalry in the industry. This diversity includes types of special care centers, locations, and price ranges.