<p align="justify">Aetna Inc. is a health care company operating in America. The company sells the consumer directed and traditional health care insurance. It also provides other services like pharmaceutical, medical, dental, long-term care, behavioral health, and some disability plans. It offers services mainly through the employer-paid partly or fully benefit programs or insurance, also through Medicare. The company is the subsidiary of the CVS Health since 2018. Aetna believes in bringing the positive change in the patients’ life and consider itself socially responsible. It believes in providing the healthier lives to people and work for the healthier community (Aetna, 2019).</p>
<p align="justify">The company is operating in the world market, it is necessary for it to have industrial analysis. The company have to compete with rivals for maintaining the leading position. Hence, Porter five forces model is suitable for the detailed industrial and external factor analysis. The model helps in identifying the strategic position of the company. It also makes the decision-making process easier. Here is the detailed Porter five forces analysis of Aetna Inc.;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">As Aetna provides the insurance services and benefit programs, the company does not significant threat from individual buyers. However, its corporate clients have high bargaining power and more control over prices. This is because they pay huge sums as the premium of Health insurance of its employees to the companies. Company makes good profit margins with its corporate clients more than individual ones. However, it is important for Aetna to improve its offers and services for individual clients also, as they are socially responsible for providing the healthier lifestyles (Gerard, 2019).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of the suppliers is low to moderate. As their bargaining power mainly derived from prices and demand of the products. Thus, they are not the big threats for the companies in healthcare industry. However, threats are existing from the human forces supply. Human capital is the main component in this industry. Many large companies attract the talent from the small companies in order to grow itself by providing good services. It becomes difficult for the small firms to retain its employees. Thus, it is necessary for Aetna to maintain good relationship with its human force (Sohail, 2011).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">Threats of the new entry in the health care and insurance industry is low to moderate. One of the major reasons to this is the strict rules and regulations imposed by the government. This involves high tariff rates, tax rates, entry restrictions, documentations tec. Moreover, the already existing companies in the industry has increased the competition level too high. It is difficult to work with them. Furthermore, the development of distribution channels and network is a big task. The high capitalization requirement is another factor contributing in low threats of entry (Gerard, 2019).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Aetna Inc faces high threats from the substitute products. As the company works in the health care and insurance industry, plenty of choices are available in the market. Many of the services are standardised and offered in low prices. The high competition level already exists in the market. The large companies use their competitive advantage to gain more customers. The substitutes are available in terms of more choices and options available. However, no product substitution exists now. Aetna has to improve the services and increase its portfolio in order to be competitive in the industry (Gerard, 2019).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The competition level in the health care industry is vey intense. The main competitors of Aetna Inc are United Health Group, Well Point Inc, and CIGNA Corporation. In health care insurance, consumers look forward for the high-quality services in less possible prices. Their demands are linked with increasing medical costs and other options. The profitability and growth of company is highly dependent on the operations and contracts with health care and medical personnel. Therefore, it is important for Aetna to offer more benefit programs and insurance benefits to compete with the rivals in the industry. The company should also look forward for the expansion to increase the customer base (Sohail, 2011).</p>
<h2 align="justify">References</h2>
<p align="left">Aetna, Inc. 2019. About us, who we are? [Online], Available at: <a href="https://www.aetna.com/about-us.html">https://www.aetna.com/about-us.html</a>, [Accessed on: 27th December, 2019].<br />
Gerard, 2019. Porter five forces analysis of healthcare sector. [Online], Available at: <a href="https://gerardcambon.net/porters-five-forces-model-analysis-of-healthcare-sector/">https://gerardcambon.net/porters-five-forces-model-analysis-of-healthcare-sector/</a>, [Accessed on: 27th December, 2019].<br />
Sohail, N. 2011. Aetna health insurance group. [Online], Available at: <a href="https://www.scribd.com/document/61937638/aetna-health-insurance-group">https://www.scribd.com/document/61937638/aetna-health-insurance-group</a>, [Accessed on: 27th December, 2019].</p>