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The competitive environment consists of new entrants, competitive rivalry, threat of substitutes, power of buyers and power of suppliers.
Firstly, Mayne evolved due to various economic factors. There was falling sales in its “total transport service” business. Consumer demands for private hospitalisation were improving. Health care was an unexploited market and niches were few. “In the USA vast health and aged care corporate empires had been created and vast wealth generated for shareholders.” (Wynne, 2004) US diversification models were a success. Mayne had invested funds into Optus but this investment did not please major shareholders who were demanding that it be put to better use...
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