Case Study of Pharmaceutical Industry
Prezi Transcript
PESTLE Analysis of the Pharmaceutical Industry Political - Recent US health reforms has led to increased pressure on price. - Increased push for continued overseas aid, particularly through the United Nations and the European Union, with price of the drugs being a major factor in the supplier choice. Economical - Due to the current economic climate, price has become a major factor in pharmaceuticals especially on drugs where generic brands are also available. Social - Skilled employees can be difficult to source in other third world countries where segments of the batch production line may be based. - Increasing pressure on pharmaceutical industry to support developing countries through the supply of reduced cost drugs, tightening margins. Technological - Technology evolution in the industry is fast and needs to be updated frequently to avoid being left behind with the first to implement radical new technology into the production process gaining 'first mover' advantages Legal - Many legal restraints to releasing drugs suitable for human consumption - High legal costs associated with passing drugs for human consumption and dealing with unforeseen side effects of a drug Environmental - Batch production processes of pharmaceutical products can have manufacturing plants based in multiple countries. The carbon footprint of many drugs can be very large due to the amount of transport involved in the batch production processes.
Prezi Transcript
Industry Competitiveness Overall the pharmaceutical industry is highly competitive, due to reasons already discussed but also due to the potential for very high returns if new drugs can be created. The market is densely populated with many of the firms being established for significant amounts of time and well known globally. Bargaining Power of Suppliers Established industry has led to a multitude of suppliers limiting influence. However suppliers tend only to supply technology as drugs are produced in house.
PESTLE Analysis of the Pharmaceutical Industry Political - Recent US health reforms has led to increased pressure on price. - Increased push for continued overseas aid, particularly through the United Nations and the European Union, with price of the drugs being a major factor in the supplier choice. Economical - Due to the current economic climate, price has become a major factor in pharmaceuticals especially on drugs where generic brands are also available. Social - Skilled employees can be difficult to source in other third world countries where segments of the batch production line may be based. - Increasing pressure on pharmaceutical industry to support developing countries through the supply of reduced cost drugs, tightening margins. Technological - Technology evolution in the industry is fast and needs to be updated frequently to avoid being left behind with the first to implement radical new technology into the production process gaining 'first mover' advantages Legal - Many legal restraints to releasing drugs suitable for human consumption - High legal costs associated with passing drugs for human consumption and dealing with unforeseen side effects of a drug Environmental - Batch production processes of pharmaceutical products can have manufacturing plants based in multiple countries. The carbon footprint of many drugs can be very large due to the amount of transport involved in the batch production processes.
Prezi Transcript
Industry Competitiveness Overall the pharmaceutical industry is highly competitive, due to reasons already discussed but also due to the potential for very high returns if new drugs can be created. The market is densely populated with many of the firms being established for significant amounts of time and well known globally. Bargaining Power of Suppliers Established industry has led to a multitude of suppliers limiting influence. However suppliers tend only to supply technology as drugs are produced in house.