Professional paper
Investing in home for elderly and disabled persons in the Požeško slavonska county
Ana Asančaić
Olga Plazibat
Ivan Vukoja
Marko Vukoja
Abstract
Business venture of starting a home for the elderly and disabled people in Požeško-slavonska county, Croatia, is based on demographic trends –
population ageing and increased number of young people emigration. Growing need of adequate accommodation for the elderly and disabled people was noted, which will fulfil their requirements. Porter’s five force model analysis showed that accommodation in home for the elderly and disabled people was moderately attractive; threat of new venture entry was weak; competition among the existing homes was moderate; the power of buyers was moderate to strong; the power of suppliers was
weak, and the influence of substitute was moderate to strong. Collected information showed that the market of homes for the elderly and disabled people wasn’t saturated, that accommodations prices in county homes were lower than in private homes, and that building expenses were high. With the capacity of 22 beds, building expenses amounting to 1.5 million kunas (about 220,000 US$) and monthly expenses (gross salary, credit, gas, electricity, water and food expenses) around 60.000 kunas (8.700 US$), such a home couldn’t reach the break-even point. Although it is a popular activity, investment in such homes with a capacity of 22 beds is ill advised.
Keywords
home for the elderly and disabled persons; Požeško-slavonska county; Porter’s model
Hrčak ID:
149241
URI
Publication date:
9.12.2015.
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