The health care industry Provides health products and service which involved the leading technology of life science. It is a fast-growing industry and will continue to grow in the future because of the increasing request to the advanced medical care. The Global Industry Analysis (GIA,2009) predicted that the prescription drug market is value around $897 billion in world economy in 2015, and Asia-Pacific region is expected to have highest growth in prescription drugs. The health care sector in Australia is one of the most advanced and sophisticated industry in the world. Numerous world leading healthcare companies are located in Australia. According to the Government Department of Innovation, (2011) there are approximately 470 companies developing and selling biotechnology products in Australia and abroad. The healthcare industry contributed almost 10 percent to the Australia Gross Domestic Product (GS1 Australia,2011). Meanwhile, in the ASX Health Care and Biotechnology Sector Profile, (2011) the number of ASX listing company in the healthcare and biotechnology industry is 151, and the market capitalisation in March is around 52 billion dollars. This report will analysis the industry characteristics via value the chain, use Porter's five forces,and compare with the market. In addition, two notable and representative health care company, namely CSL (CSL)and Cochlear(COH) will be introduced to provide supplementary information for the health care industry analysis.
1 Value Chain Analysis
In general, the primary sequence of producing in biotechnology industry can be divided in to the following sectors, research and discover the drug, test and get the approval from government regulators,design and produce the drug, delivery and sell of the drugs.
In the chain of the health care industry, the researh of new drug requires a large amount of capital. On the basis of the common size of CSL and COH, the R&D...