Globalisation's Impact on Australian Pharmacy Industry Analysis

This report examines the impact of globalization on the Australian pharmacy industry, focusing on the external business environment. It utilizes a PESTLE analysis to assess the influence of political, economic, social, technological, legal, and environmental factors. The report highlights both the positive and negative effects of globalization, such as increased healthcare spending, regulatory frameworks, aging population, technological advancements, and market competition. It provides an overview of the pharmaceutical industry's operating conditions in Australia and concludes with recommendations for the health community and pharmaceutical companies to navigate the challenges and opportunities presented by globalization. The report emphasizes the need for adapting to health trends, biotechnology advancements, and pricing pressures to improve profitability and sustainability within the industry.

Business Fundamentals

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Executive summary
The impacts of globalisation are instantaneously posting and negative differs as per the
factors like geographic location, age, education level, ethnic origin and socioeconomic status.
The health community engage more directly in the current research and policy debates on the
globalisation. The globalisation inspires values which promote human health. Moreover,
globalisation procedure identifies that attending to health impacts reinforce the long-term
sustainability of the globalisation.
Growing healthcare spending has turned out to be a big prospect for globalization. The
globalization has led to providing the unique opportunities to the businesses worldwide. This
report comprises the significance of external environment on the business operating
conditions within the international context. The PESTLE analysis has been analysed
concerning to the pharmacy company of Australia. This analysis provide framework to define
the positive and negative impacts caused by the external environment (Sharma, Saboo and
Kumar, 2018). The regulatory framework of Australia incorporates several government
agencies and drug concerning laws. The increasing healthcare spending in the country has
turned out to be a big opportunity for globalization of the medical industry. The globalization
has created unique opportunities to businesses worldwide. The globalization follows an
erudite advertisement system that enables companies to interact with the users. The
supremacy of the pharmaceutical compliance enforcing industry in Australia has been
augmented due to reliability and unconventionality. The customers also demand high-quality
products at attractive prices. The operating conditions of the pharmaceutical industry has
been described in the report. The regulatory framework in Australia includes numerous
government agencies and drug concerning laws.

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Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
PESTLE Analysis affecting pharmacy industry........................................................................3
Conclusion..................................................................................................................................6
Recommendations......................................................................................................................7
References..................................................................................................................................8
Appendices...............................................................................................................................10

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Introduction
The globalization in the pharmaceutical industry is influenced by trends. The trends are
influenced by the trends driven by the technology, customers, distribution channels and
initiation of innovative offerings. The advancement in technology, strict regulatory controls,
expiry of the patents and unpredictable investor confidence has made the Australian
pharmaceutical industry quite tough and competitive. The health impacts of globalization are
concurrently positive and negative, differ as per the factors like education level,
socioeconomic status, and geographic location. The globalization in the pharmaceutical
industry has resulted in offering the greatest benefits with the least costs. The globalization in
the case of the Australian pharmaceutical industry has proved to be promoting human health.
The impacts on health have reinforced the sustainability of the globalization.
The positive impacts of the globalisation in the case of pharmaceutical industry has been
realised in the form of increased pathogen flows, increased information flows, increased trade
flows, increased financial flows, and increased people flows. The movement of people in this
concern is regarded to transport of pathogens. The development in the telecommunication has
designed the modern globalization. The globalisation in the pharmaceutical industry has
helped in enhancing health knowledge along with the technological innovation. The increase
in the trade flows has been enabled with economic integration. It has resulted in the
generation of new sources of wealth and health (Riley, 2017). The increased financial flow as
a positive impact of globalization has reorganized the production across the national borders.
On the other side, negative impacts of the globalization have been realised in the form of less
progress towards better health. It took place as a consequence of diffusion of medical
procedure.
PESTLE Analysis affecting pharmacy industry
The pharmaceutical has become global, products are sourced and manufactured from around
the globe, marketed and then sold to the large proportion to the world population. The
globalisation of the pharmaceutical industry is stated to the growth and expansion of
pharmaceutical companies into the international markets. The pharmaceutical companies are
known to research, manufacture, produce or market products like medicines, medical
equipment, health care services comprising insurance, patient care and biotechnology. In the
context of globalization, pharmaceutical companies are in the procedure of integrating and
cooperating pharmaceutical networks around the world (Hanson, et al. 2016). These

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companies markets products to the new markets and leverages diverse populations in order to
boost growth. When it comes to pharmacy industry, globalization has effects through the
combination of technological and economic dimensions. The pharmacy industry concentrates
on research, develop and allocate drugs. The pharmacy industry of Australia is affected
through 3 major segments, research and development, production and marketing. With the
arrival of globalization, the availability of the information has enhanced which has changed
the role of the doctors. The globalisation process has even influenced the marketing by
shifting towards the patients. The influence of PESTLE factors on Pharmacy’s industry’s
operating conditions is explained below:
Political factors: The political factors affecting the pharmacy industry comprises:
Regulatory frameworks: Australia is having strict regulatory framework for the
pharmaceutical companies. The regulatory framework encompasses several government
agencies and drug concerning laws. The regulatory frameworks in most of the cases concerns
to the health and safety of the medications. The globalisation has great role in advertising and
selling medicines. Sometimes, complex regulatory framework turns out to be a serious
barricade for the entry of new competitors (Abouk, Pacula and Powell, 2019) (Horner, 2016).
On the other side, existing pharmaceutical companies found it easier to follow.
Pricing pressure: The pharmaceutical companies in Australia are free to price medications as
they want. It has resulted in substantial outrage as different manufacturers sell the medicines
at hugely marked prices. When drugs like diabetes treatments are critical for the survival for
human health, it appears incredibly immoral to sell the medicines at high prices. Now the
globalization has resulted in limiting the price of the drugs to be sold. It also means that
pharmaceutical companies are left with fewer profits after consideration of all the things.
Economic factors: The economic factors influencing the pharmaceutical industry of
Australia are:
Growing healthcare spend: The upward trend has been realized in household healthcare
spending. The average individual spending has been increased more in the healthcare
comprising medication. The increasing healthcare spending has turned out to be a big
opportunity for globalization (Mahajan, 2019). The increasing spending on healthcare
services has ultimately resulted in greater revenue for the pharmaceutical industry of
Australia.

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Social factors: The social factors affecting the pharmaceutical industry are mentioned below:
An aging population: The healthcare has rapidly enhanced globally but Australia faces the
problem of the aging population. It states that the average person is older than before. The
older individuals are having precarious health problems than younger individuals. Therefore,
the ageing population represents that Australia has more health issues to manage. It creates
demand for the globalization of the products and creates more revenue in the pharmaceutical
industry of Australia (Duong, et al. 2019).
Growing obesity rates: The obesity has become a serious health issue in the emerged nations.
Moreover, obesity rates are rapidly increasing. Although the globalization has helped in
declining the diseases like malaria or AIDS diseases of affluence are more predominant.
Obesity has become a serious issue in Australia and the rate of obesity is also increasing in
Australia. There are even secondary health issues linked with obesity and out of which
various necessitate pharmaceutical treatment. Therefore, increasing rates of obesity have
actually resulted in the positive impact of globalization. The obesity rates are actually
enhancing sales of some drugs along with increasing the complete revenue of the industry.
Health trend: Other than the increasing rates of obesity, the trend is growing towards more
health consciousness in Australia. Moreover, it has become a fashion among young and
middle-age adults to lead a healthy life. Such a trend has influenced people to lead a healthy
and superior lifestyle. It has even impacted globalization in a negative way as the need for the
pharmaceutical will be reduced in the future (Corley, 2017).
Technological factors: The technological factors influencing Australian pharmaceutical
industry encompasses:
Mounting biotechnology industry: Biotechnology is used on living organisms to enhance the
lives of people. The technology is used in areas like food science, agriculture, and medicine
(Nirjar, Acharya and Aniruddha, 2018). The biotechnology in medicine has put positive
impacts on the pharmaceutical industry of Australia. The globalization has helped in
producing and distributing an extensive range of products along with generating additional
revenue (Bignami, Mattsson and Hoekman, 2019).
Direct advertising: The globalization has resulted in offering a unique opportunity to
businesses worldwide. The globalization follows a sophisticated advertisement system that
enables companies to interact with the users. It has helped in greatly enhancing the

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advertising potential (Parameswar and Dhir, 2018). It will result in lowering acquisition costs
along with attaining more customers. It has resulted in the growth of companies as companies
can appeal to new customers to procure several medications.
Legal factors: There is higher growth potential in Australia due to a competitive market.
Australia has open borders to import and export medicines. The cultural distance is tending to
be lower for Australia (Vermeulen, 2018). The nation has attained greater investment from
the stakeholders which has increased innovation. The social-political environment has an
influence on the decisions made by the pharmaceutical companies in Australia. The
globalization has increased pressure on the pharmacy companies to trade in the ethical
manner of offering medicines (Pancholi, Yigitcanlar and Guaralda, 2019).
Environmental factors: The Power of the pharmaceutical compliance enforcing industry in
Australia has been increased due to credibility and independence. The customers also demand
high-quality products at appealing prices. The customers in the concerned industry are having
a low level of involvement. The pharmacy industry also has to perceive compliance and
regulatory reforms. The globalization has even encouraged innovations in the pharmaceutical
industry. Australia has a greater interest in healthcare because of the greater demand
(Eckhardt and Lee, 2019).
Conclusion
The globalization is a wider one and its denominational groups are full of apparent sinners
and saints. The impact of globalization in the case of the pharmaceutical industry is felt
through the cultural and economic dimensions. It is an economic phenomenon created by
nation-states performing in the interests of capitalist expansion. The pharmaceutical industry
aims at offering beneficial products for human consumptions along with the chemical
medicaments. The globalization has brought deviations in the pharmaceutical industry. The
pharmaceutical at present is a highly modest non-assembled international industry. The
advancement of the globalization is confidentially associated with the grip of neoliberal
doctrine and its enactment in the government policies.
The globalization concentrated on the research and development of the drugs. The
globalization has affected the pharmacy industry by 3 channels production, marketing, and
research and development. The increased and improved accessibility of the information has
made people more attentive to the adverse effects of the drugs and also made the verdict of
the doctors questionable. It has been deliberated as a positive impact of globalization in the

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pharmacy industry. Along with this, globalization has increased the revenue of the industry.
Along with this, it has resulted in the monopoly of the larger multinationals.
Recommendations
The health community is required to engross more directly in the recent research and policy
debates on globalisation and inspire values which encourage human health. Add on, the
globalisation procedure should identify that appearing to the health impacts will robust the
sustainability of globalisation in the future.
The globalisation in the pharmaceutical industry has led to tough regulatory framework
which sometimes disturb to the market. Therefore, it is recommended to modify regulatory
framework to make sure that the healthcare spending also increases. Along with this, health
trends, biotechnology advancements and several pricing pressures should also be modified to
increase profitability of the industry.

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References
Abouk, R., Pacula, R.L. and Powell, D., 2019. Association Between State Laws Facilitating
Pharmacy Distribution of Naloxone and Risk of Fatal Overdose. JAMA internal
medicine, 179(6), pp.805-811.
Bignami, F., Mattsson, P. and Hoekman, J., 2019. The importance of geographical distance to
different types of R&D collaboration in the pharmaceutical industry. Industry and
Innovation, pp.1-25.
Corley, T.A.B., 2017. The British pharmaceutical industry since 1851. In The
Pharmaceutical Industry (pp. 14-32). Routledge.
Duong, M.H., Moles, R.J., Chaar, B. and Chen, T.F., 2019. Stakeholder perspectives on the
challenges surrounding management and supply of essential medicines. International journal
of clinical pharmacy, 41(5), pp.1210-1219.
Eckhardt, J. and Lee, K., 2019. The international political economy of health. In The
Palgrave Handbook of Contemporary International Political Economy (pp. 667-682).
Palgrave Macmillan, London.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Horner, R., 2016. Pharmaceuticals and the Global South: A Healthy Challenge for
Development Theory?. Geography Compass, 10(9), pp.363-377.
Mahajan, V., 2019. Structural changes and trade competitiveness in the Indian
pharmaceutical industry in product patent regime. International Journal of Pharmaceutical
and Healthcare Marketing, 13(1), pp.21-39.
Nirjar, A., Acharya, M. and Aniruddha, 2018. The networks-innovation-firm performance
relationship: does it hold good in Indian pharmaceutical industry?. International Journal of
Business Innovation and Research, 16(4), pp.399-423.
Pancholi, S., Yigitcanlar, T. and Guaralda, M., 2019. Place making for innovation and
knowledge-intensive activities: The Australian experience. Technological forecasting and
social change, 146, pp.616-625.

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Parameswar, N. and Dhir, S., 2018. Technology Transfer and Innovation in Global
International Joint Ventures—Emerging Markets’ Perspective. In Global Value Chains,
Flexibility and Sustainability (pp. 77-87). Springer, Singapore.
Pharmafile, 2017. A patent analytics study of the Australian pharmaceutical industry.
fromhttp://www.pharmafile.com/news/513654/patent-analytics-study-australian-
pharmaceutical-industry [Accessed on 12/01/2020]
Riley, P., 2017. Wright, Sue: Language policy and language planning. From nationalism to
globalisation. Journal of English as a Lingua Franca, 6(1), pp.201-204.
Sharma, A., Saboo, A.R. and Kumar, V., 2018. Investigating the Influence of Characteristics
of the New Product Introduction Process on Firm Value: The Case of the Pharmaceutical
Industry. Journal of Marketing, 82(5), pp.66-85.
Vermeulen, B., 2018. Geographical dynamics of knowledge flows: descriptive statistics on
inventor network distance and patent citation graphs in the pharmaceutical
industry. International Journal of Computational Economics and Econometrics, 8(3-4),
pp.301-324.

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Appendices
(Pharmafile, 2017)