Preview

Pharma Five Forces

Best Essays
Open Document
Open Document
2399 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pharma Five Forces
Team 1:
Homework No. 1 1. I was expecting an innovative name and logo from your team. 2. A very good introduction of the industry. Note ii. The second edition of the textbook (Barney and Hesterly) is copyrighted in 2008. 3. Industry rivalry: use a note to indicate the source when you applied the number (e.g., 25% of the market presence) to support your analysis. 4. Threat of substitutes: Generic brands are more likely to be considered as “competitive” products. Yes, CAM and alternative medicine are substitutes. However, there are many ways to prevent sickness (e.g., a healthy lifestyle). I think there is no “perfect” substitute to treat disease and sickness in most cases. 5. A good discussion on how the five competitive forces affect profitability of the pharmaceutical industry. 6. Please follow the proper format for using endnotes. The textbook provides good examples for you to follow. 7. Overall, it’s a very good 5-force analysis on the Pharmaceutical industry. You are able to apply textbook theories and additional information to support your analysis. 8. Grade A (90)

Dr. Lee
March 3, 2008

A Five Forces Analysis on the Pharmaceutical Industry

Team #1
Gwen Johnson
SJ Lee
Michelle Middleton
Nigel Ngai
Greg Palmeri
Business Capstone
Professor Lee
February 27, 2008
The Pharmaceutical Industry Over the past few decades, the pharmaceutical industry has been struck by many challenges, such as new state drug substitution laws and federal legislation. There have also been opportunities, such as revolutionary developments in information technology and the emergence of market institutions that include health maintenance organizations and pharmacy benefit managers[i]. The pharmaceutical industry includes all companies that develop drugs and then patent and distribute the drugs to consumers[ii]. This paper focuses on how Michael Porter’s five external environmental forces – barriers to entry, bargaining power of buyers

You May Also Find These Documents Helpful

  • Better Essays

    Pharmasim Project

    • 3960 Words
    • 16 Pages

    The over-the-counter (OTC) cold and allergy remedy market was highly competitive. There were already 10 brands targeting in different segments at the beginning of the simulation. OTC cold medicine is effective to cure 3 major types of illness - cold, cough and allergy which associate with different symptoms like aches, nasal congestion, chest congestion, runny nose, coughing and allergy. Consumers can be segmented by young adult, young family, mature family, empty nester, retired. The products were sold to consumers in various channels including independent drug stores, chain drugstores, grocery stores, convenience stores and mass merchandisers.…

    • 3960 Words
    • 16 Pages
    Better Essays
  • Satisfactory Essays

    Cvs Competitive Analysis

    • 644 Words
    • 3 Pages

    In this section I will be using Porter’s Five Forces to analyze market competition and attractiveness. The analysis showed that the drug/retail market is highly competitive and the risk of new entrants to the market is fairly moderate to high. Considering CVS’s position in the market as the largest pharmacy chain in the US and its integrated services, CVS has only a few strong competitors. Currently, CVS has a few competitive advantages that should be used to further increase the market share, increase profitability, and reduce costs.…

    • 644 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Business Capstone

    • 947 Words
    • 4 Pages

    a) Incorporate the Five Forces of Competition to help write the Industry analysis of your Capstone Project.…

    • 947 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Unit 8 econ HW 1

    • 824 Words
    • 10 Pages

    4. Provide a list of references at the end of the last page of your assignment.…

    • 824 Words
    • 10 Pages
    Satisfactory Essays
  • Powerful Essays

    Prescription drugs are one of the main increasing costs in health care. It has an impact on the population that could not afford prescription drugs, including brand name. The use of generic and OTC (over-the-counter) drugs gave the underprivileged groups in America a better chance for purchase. People believe that the generic form of the drugs do not have the same effect that brand name drugs do. It is a concern that prescription drug addictions rise in the elderly and the younger groups who use for nonmedical reasons. The availability of drugs is one of the causes of abuse. Most people take medicines only…

    • 1538 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    In industries in which the five forces are favorable, such as soft drinks, mainframe, computer, Internet, database publishing, pharmaceuticals, and cosmetics, many competitors earn attractive returns on invested capital. The five competitive forces determine industry profitability because they shape the prices firms can change, the costs they have to bear, and the investment required to compete in the industry. The threat of new entrants limits the overall profit potential in the industry, because new entrants bring new capacity and seek market share, pushing down margins. Powerful buyers or suppliers bargain away the profits for themselves. Fierce competitive rivalry erodes profit s by requiring higher costs of competing advertising, sales expense…

    • 2514 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Big Pharma Research Paper

    • 840 Words
    • 4 Pages

    Many drugs that Big Pharma shepherded through FDA approval--drugs like Vioxx, Fen Phen, Celebrex and Zohydro--killed hundreds of people before they were removed from pharmacy shelves. The medical industry and consumers no longer need Big Pharma or its inherent evils. Small, independent researchers, University research departments, private laboratories, government studies and the experiences of hospitals and medical clinics--working autonomously--can deliver better results faster than Big Pharma ever could or would unless those results guaranteed huge profits and virtual marketing monopolies.…

    • 840 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Free-market advocates claim that competition results in the best possible outcome for all parties involved. Perfect competition is claimed to lead to the best product for the consumer and it’s also supposed to…

    • 4286 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    It is possible that the multinational pharmaceutical company would want to stymie generic competition because of cost. It takes time, research and development to create a new product. Pharmaceutical companies spend an average of $800 million to $1 billion and between eight and sixteen years to research a new drug (nationmultimedia.com). As far as generic brands being a competitor, I can see why pharmaceutical companies would want to hinder generic brands. Once the brand name is no longer patent the competition which is generic brands is free to recreate the drug and getting it approved by FDA to ensure that it is equivalent to brand name drugs. Generic brands are drugs that are manufactured and marketed without brands. Generic brands are much cheaper than brand name drugs for numerous of reasons. Brand name pharmaceutical companies feel the need to charge ridiculous practices to make a profit for the product as well as the research and development for the…

    • 686 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.…

    • 1345 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Purpose of this report is to identify main environmental forces that are currently affecting the pharmaceutical industry and to provide reader the understanding of possible effects of this changing business environment on pharmaceutical firms. It also evaluates advantages and limitations of tools used to analyse pharma industry.…

    • 3462 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Nestle Case

    • 453 Words
    • 2 Pages

    -Is it possible to find a universal blockbuster product given the differences between food/nutrition and drugs/diseases?…

    • 453 Words
    • 2 Pages
    Good Essays
  • Better Essays

    All pharmaceutical companies have been built up their strategies to get the competitive advantage to take over their competitor. For the following sections, it will use PESTEL and Porter’s Five Forces to review the pharmaceutical industry.…

    • 964 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Mr Elmahi

    • 295 Words
    • 2 Pages

    2. Prepare a competitor analysis. How would you define Google’s industry? Who are Google’s competitors?…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    CASE 11

    • 116 Words
    • 1 Page

    b) What does a five forces analysis of the industry tell you about competition in the regional airline industry?…

    • 116 Words
    • 1 Page
    Satisfactory Essays