Correspondence: Bruce E Perrott, UTS PO Box 123 Broadway, NSW Sydney, Australia. Tel: +61 2 9514 3524; Fax: +61 2 9514 3535; E-mail: Bruce.perrott@uts.edu.au

¹is interested in strategic management. He is concerned with how business and marketing strategies are formulated, formalised and managed through to the implementation phase. This interest is pursued through a broad range of activities including research, post graduate education, management development and consulting. Current research interests focus on corporate and knowledge management and marketing strategy in healthcare. Numerous papers and workshops have been presented in recent times to international conferences and academic forums in Australia, Belgium, Canada, Finland, Norway, China, France, Germany, UK and the United States. He is increasingly involved in working with private and public sector management in helping them to develop profitable growth and effective knowledge management strategies. He recently directed two major research projects investigating strategic issues facing the private hospital industry and dimensions of knowledge management practice, and is currently a member of a large research programme investigating self disclose of medical procedures in the public health system.

Received 4 April 2007; Revised 4 April 2007.

Abstract

Some researchers contend that it is only through a deep understanding of the possibilities and nature of routine coordinated activity that whole industries can be properly framed and understood. This paper sets out to examine industry dynamics of the Australian private hospital industry regarding factors that will impact industry members in setting business and marketing strategy for future directions. A strategy framework is used to examine the extent of competitive rivalry, the threat of new entrants, the role of consumers, the role of substitutes and the role of suppliers. In discussion, an assessment is made of the industry's attractiveness, implications of the findings for industry managers and an overview of future issues facing the industry.