Impact of the sphere of influence in hospital of the density of the customer population of a service centre is high near the service centre but decrease with increasing distance due to the frictional effects of the distance
. This means that the closer a customer is to the service center, the more likely they are to use its services. As customers move further away from the service center, they are less likely to visit due to the inconvenience and cost of travel.
The sphere of influence also affects the competition within the market. If a hospital has a large sphere of influence, it may attract customers from a wider geographic area, which can lead to increased competition with other hospitals in the surrounding area. On the other hand, if a hospital's sphere of influence is limited, it may have less competition and be able to capture a larger share of the local market.
Additionally, the sphere of influence can impact the hospital's revenue and overall success. A hospital with a large sphere of influence may have a larger customer base and therefore higher revenue. Conversely, a hospital with a smaller sphere of influence may struggle to attract enough customers to sustain its operations.
Overall, the sphere of influence plays a significant role in determining the success and viability of a hospital. Understanding and effectively managing the sphere of influence can help hospitals attract and retain customers, compete in the market, and ultimately thrive in the healthcare industry.