History and Analysis of the Pharmaceutical Industry

The History and Analysis of the
Pharmaceutical Industry
Pharmaceuticals Industry Analysis
i
1. Origins and Evolution 2
2. Environmental Analysis (PEST) 2
3. Structural Industry Analysis (Porter’s Five Forces) 4
4. Strategic Issues Facing The Industry 5
5. Analysis of Key Industry Participants and Strategy 6
6. Pfizer – SWOT Analysis and Strategy Review 8
7. Conclusion 10
8. References 10
Pharmaceuticals Industry Analysis
Page 1
Executive Summary
This report provides an analytical strategic review of the pharmaceutical industry; it’s origins,
evolution, development and competitive environment within which it operates and the strategic
issues facing the industry. The report also offers an overview of the industry, it’s key players,
their strategic outlook, the impact of technological developments and other strategic issues
facing the industry.
The latter sections of the report focuses on the industry’s leading firm, Pfizer\Pharmacia.
Pharmaceuticals Industry Analysis
Page 2
The Pharmaceutical Industry
1. Origins and Evolution
The modern pharmaceutical industry is a highly competitive non-assembled1 global industry. Its
origins can be traced back to the nascent chemical industry of the late nineteenth century in the
Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic
properties. A host of modern pharmaceutical companies all started out as Rhine-based family
dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a
merger between Ciba and Geigy), Novartis2 etc. Most are still going strong today3.
Over time many of these chemical companies moved into the production of pharmaceuticals
and other synthetic chemicals and they gradually evolved into global players. The introduction
and success of penicillin in the early forties and the relative success of other innovative drugs,
institutionalized research and development (R&D) efforts in the industry 4. The industry... [continues]

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