Pharmaceutical Industry Analysis

Case study 3

Table of Contents
INTRODUCTION...........................................................................................................................1
Q.1 Environmental forces affecting global pharmaceutical industry..........................................1
Q.2 Relevancy of five forces framework....................................................................................1
Q.3 Forces differ by industry sector and where would it place the in the industry life cycle.....2
Q.4 Strategic choices made by Pfizer from 2008 onwards and drivers behind these choices....3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................3

INTRODUCTION
Pharmaceutical industry plays a major role in facilitating patients suffering from various
diseases by offering suitable drugs to them at affordable price (Dunlap‐Hinkler, Kotabe and
Mudambi, 2010). This assignment is going to highlight factors which affects the success or
development of this sector with the help of corrective information.
Q.1 Environmental forces affecting global pharmaceutical industry
Micro and macro elements fluctuated due to changes in various other factors which
influence the development of pharmaceutical industry such as ; increment in general population
or ageing have a greater impact on this sector (Hess and Rothaermel, 2011). One of the major
issues which affects is a problem of intellectual property that consider as a global obstacles for
entire industry. As a result fraudulent activities get maximized and shaken the overall sector.
Moreover, control by governing bodies on pricing is another challenge for this industry which is
consider in the form of “parallel trade”.
(Source:- Benson, 2015)
Q.2 Relevancy of five forces framework
Porter five force models is highly suitable for resolving environmental issues which
influence the entire society because it aids in understanding the bargaining power of various
1
Illustration 1: Global needs drive growth of pharmaceutical
industry