Australia Population in 2015

In 2015, Australia has a total population of 23.8 million (The World Bank Group, 2016). This reflects an increase of about 326,000 people since 31 December 2014. With this, 5.9 million of people are from the states of Victoria and 517,000 people are from Tasmania. According to the population growth rate, it is stated that Victoria have a highest growth rate at 1.9% (Australian and Statistics, 2016).

Australia have an overall of 13.2% of population aged 65 years and above in 2008.

In Victoria, 13.5% people aged 65 years and above of the total population. Melbourne had a lower proportion of 12.6% older people compared to the Victoria 16.0% of the population. It is estimated that by 2021, 17% of Melbourne’s population and 23% of Victoria’s regional population are estimated to be above 65 years.

Demographic changes in the older population is one of the main impact on aged care where more services are required (DocPlayer, 2016).

3. Industry analysis

Michael Porter’s Five Forces framework is used to analyse the environment and evaluate the industry attractiveness. The five forces include the threat of entry, rivalry between competitors, threat of substitutes, the bargaining power of the buyers and supplier (Hill and Jones, 2014).

3.1 Threat of entry- Low

Government rules and regulation has constituted a major entry barrier for many industries including the aged care industry. According to the Aged Care Act 1997 and Aged Care (accommodation payment security) Act 2006, the organisation will need to follow the government rules and regulation that the government have implemented to protect both the customers and the organisations.