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Health Care REIT: Strategic Analysis Research Paper

Imatability: Given the lack of available credit for starting new property ventures and construction, the company's current facilities do give it an advantage. Financial barriers to industry entry are higher than they were in the past. This can act as a barrier to 'imatiblity' of its business model.

Organization: Health Care REIT has a fairly concentrated organizational structure. While this can be an advantage in terms of assuring consistency of service, it can also result in narrowness of vision, such as (perhaps) a tendency to focus too much on high-end offerings, when seniors may have less financial leverage than in the past.

Sources, rarity, and imatability of cost advantages

Economies of scale may be possible, given the size of Healthcare REIT. Unlike some of its competitors, the company was an early, first mover in the field of assisted living. According to the "History" section of the company website, "Today, Health Care REIT is a member of the S&P 500 Index and has an approximately $7.5 billion portfolio spanning the full spectrum of medical, senior living and health science real estate." Its long-standing...

However, the organization is not entirely shielded from risk. Many of the investments are highly concentrated in the more pricey, luxury price range, and if the entire segment experiences an economic downturn, the organization as a whole may suffer. However, some aspects of the company enterprises, such as its acute care facilities, tend to have less elastic demand because of customer need.
References

Executive Officers. (2010). Health Care. REIT. Retrieved November 3, 2010 at http://www.hcreit.com/about-hcn/executive-officers

History (2010). Health Care. REIT. Retrieved November 3, 2010 at http://www.hcreit.com/about-hcn/history

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References

Executive Officers. (2010). Health Care. REIT. Retrieved November 3, 2010 at http://www.hcreit.com/about-hcn/executive-officers

History (2010). Health Care. REIT. Retrieved November 3, 2010 at http://www.hcreit.com/about-hcn/history
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