The Global Pharmaceutical Industry
The global pharmaceutical industry
Introduction
Pharmaceutical industry is the one of big revenue business in the world. There are lots of company gains a lot of profit and market share in this industry. Most of those companies were established in 19 century and early 20 century. This study explains their model development process of pharmaceutical industry, it details some issue like Thalidomide tragedy in 1970’s and legislation, then decreases the risk of side effect and protects the patient. The pharmaceutical industry pressured by economics and some new regulation from government for safety in 80’s.
The current business model of pharmaceutical industry is moving to a highly complex. The technology assists to discover and develop of human knowledge. The distribution system of development and management is complex and high costly with some huge size of companies.
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.
PESTEL
-Political
In this industry, the companies must corporate with government. When they have a new concept to develop a new product, they have to do a lot of research in the market & government. At least government would not reject the products when finished. The management must have some connection with the government or senator to keep a good relationship with them. In the other way, government may have requested them to develop a new pill/vaccine to confront the disease/virus; they have to coordinate with government.
-Economic
In past few years, the global economy has yet to shake out the fall from the crisis of 2008. US / Japan / Euro will still lead the growing of global economy on coming years. And it predicts the China will overtake the EURO on 2013. Those countries are the major market of global pharmaceutical. The profit of this industry
Introduction
Pharmaceutical industry is the one of big revenue business in the world. There are lots of company gains a lot of profit and market share in this industry. Most of those companies were established in 19 century and early 20 century. This study explains their model development process of pharmaceutical industry, it details some issue like Thalidomide tragedy in 1970’s and legislation, then decreases the risk of side effect and protects the patient. The pharmaceutical industry pressured by economics and some new regulation from government for safety in 80’s.
The current business model of pharmaceutical industry is moving to a highly complex. The technology assists to discover and develop of human knowledge. The distribution system of development and management is complex and high costly with some huge size of companies.
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.
PESTEL
-Political
In this industry, the companies must corporate with government. When they have a new concept to develop a new product, they have to do a lot of research in the market & government. At least government would not reject the products when finished. The management must have some connection with the government or senator to keep a good relationship with them. In the other way, government may have requested them to develop a new pill/vaccine to confront the disease/virus; they have to coordinate with government.
-Economic
In past few years, the global economy has yet to shake out the fall from the crisis of 2008. US / Japan / Euro will still lead the growing of global economy on coming years. And it predicts the China will overtake the EURO on 2013. Those countries are the major market of global pharmaceutical. The profit of this industry