Pharmaceutical Industry - Consolidated Paper
|The Pharmaceutical Industry |
|Consolidated Paper |
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Table of Contents
Introduction 3
Macro-Environmental Challenges 3
Political Challenges within the Macro-Environment 5
Economic Challenges within the Macro-Environment 8
Social Challenges within the Macro-Environment 11
Technological Challenges within the Macro-Environment 12
Legal Challenges within the Macro-Environment 13
Five Forces Review 15
Threat of Entry 15
Degree of Rivalry 17
Bargaining Power of Suppliers 18
Bargaining Power of Buyers 19
Closeness of Substitute Products 20
Industry Life-Cycle 21
Growth Rates 22
Intensity of Competition 26
Emphasis on Product Design 27
Major Areas of Functional Concern 28
Segment & Strategic Group 30
Financial Profiles - Segments & Strategic Groups of the Pharmaceutical Industry 31
Industry Growth 33
Industry Comparison 36
Industry Competition 37
Current Issues within the Industry 38
Current Issues – Lawsuits 39
Current Issues – Technology 40
Current Issues – Regulation 41
Conclusion 42
Works Cited 43
Introduction
This paper summarizes the results of assorted research conducted as part of our pharmaceutical industry analysis. Our analysis includes exploration into various areas of interest within the industry to include the impact of macro-environmental issues, industry life cycle, segment and group analysis, five-forces, and current issues within the industry. The goal of the paper is to provide a high-level overview of each of these areas in an attempt to depict our analysis of the major challenges within the industry.
Macro-Environmental Challenges
In a 2007 article titled Pharmaceuticals, General Survey, the pharmaceutical industry is described as an industry that
|Consolidated Paper |
| |
Table of Contents
Introduction 3
Macro-Environmental Challenges 3
Political Challenges within the Macro-Environment 5
Economic Challenges within the Macro-Environment 8
Social Challenges within the Macro-Environment 11
Technological Challenges within the Macro-Environment 12
Legal Challenges within the Macro-Environment 13
Five Forces Review 15
Threat of Entry 15
Degree of Rivalry 17
Bargaining Power of Suppliers 18
Bargaining Power of Buyers 19
Closeness of Substitute Products 20
Industry Life-Cycle 21
Growth Rates 22
Intensity of Competition 26
Emphasis on Product Design 27
Major Areas of Functional Concern 28
Segment & Strategic Group 30
Financial Profiles - Segments & Strategic Groups of the Pharmaceutical Industry 31
Industry Growth 33
Industry Comparison 36
Industry Competition 37
Current Issues within the Industry 38
Current Issues – Lawsuits 39
Current Issues – Technology 40
Current Issues – Regulation 41
Conclusion 42
Works Cited 43
Introduction
This paper summarizes the results of assorted research conducted as part of our pharmaceutical industry analysis. Our analysis includes exploration into various areas of interest within the industry to include the impact of macro-environmental issues, industry life cycle, segment and group analysis, five-forces, and current issues within the industry. The goal of the paper is to provide a high-level overview of each of these areas in an attempt to depict our analysis of the major challenges within the industry.
Macro-Environmental Challenges
In a 2007 article titled Pharmaceuticals, General Survey, the pharmaceutical industry is described as an industry that
Cited: Abbott Laboratories. (2012). 10-K Annual Report. Retrieved from Hoovers Database Baines, Donald Daemmrich, Arthur, 2011. US Healthcare Reform and the Pharmaceutical Industry. Retrieved February 28, 2013 from http://hbswk.hbs.edu/item/6832.html Eli Lilly & Company FDA. (2012, March 27). Pharmaceutical regulation. Retrieved from http://www.pharmamanufacturing.com/industrynews/2012/036.html Gassman, O., Reepmeyer, G., & Von Zedtwitz, M Herper, M. (2012, February 10). The truly staggering cost of inventing new drugs. Retrieved from http://www.forbes.com/sites/matthewherper/2012/02/10/the-truly-staggering-cost-of-inventing-new-drugs/ Highbeam Business, 2013 Hoovers. (2013). Pharmaceuticals Manufacturing. Retrieved February 28, 2013 from http://ezproxy.una.edu:2204/H/industry360/description.html?industryId=1486 Hoovers Kessel, M. (2011, Jan 10). The Problems with Today’s Pharmaceutical Business – an Outsider’s View. Retrieved from http://www.nature.com/nbt/journal/v29/n1/full/nbt.1748.html The Lead. (2011). Retrieved from http://www.lead411.com/biotechpharmacompanylist.taf Leamay, E Merck & Co., Inc. (2012). 10-K Annual Report. Retrieved from Hoovers Database. Muller, Daniel R. (n.d.). ehow.com. In Competitive Strategies in the Pharmaceutical Industry. Retrieved March 10, 2013, from http://www.ehow.com/info_8196424_competitive-strategies-pharmaceutical-industry.html. Mullins, J. (2007). A recent history of the pharmaceutical industry - based on all five forces. (2007, August). Retrieved from http://www.venturenavigator.co.uk/content/154 Pfizer Inc A Recent History of the Pharmaceutical Industry - based on all five forces. (2007, August). Retrieved from http://www.venturenavigator.co.uk/content/154 Reuters Seiffert, D. (2013, Feb 5). Lots of biotech M&A expected in 2013, but it may be a seller’s market. United States Department of Commerce (2013). GDPbyInd_GO_NAICS [data file]. Retrieved from http://www.bea.gov/industry/gdpbyind_data.htm. United States Department of Commerce (2010). Pharmaceutical Industry Profile [data file]. Retrieved from http://ita.doc.gov/td/health/PharmaceuticalIndustryProfile2010.pdf Wikipedia ----------------------- The charts to the left reflect the industry operating margin and industry net margin comparison over a six-year period (2007 – 2012) for the various pharmaceutical companies operating under their applicable NAICS Code.