Case Study of Pharmaceutical Industry Essay

3195 Words Jun 9th, 2013 13 Pages
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,
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Threat of Substitutes There will be a higher threat of substitutes in the market once continuous flow manufacture becomes the dominant manufacturing process due to the increase in reagents and "more chemistry" that can be used in the continuous manufacture process compared to batch manufacturing methods. Porters 5 Forces Analysis Threat of New Entrants Once continuous flow manufacture methods have become the dominant process in the pharmaceutical industry, the threat of new entrants will likely increase due to the availability of smaller scale continuous flow manufacturing units and also due to the fact that there are more opportunities to find new drugs, coming from the increased flexibility of the continuous flow system. Strengths - Still a highly competitive industry, helping to deter new entrants - High investment costs for implementing continuous flow chemistry techniques, again deterring new entrants - Cost savings in long run once technology has been implemented will lead to even high profit levels - Easier to control variables in manufacturing process, increasing quality and increasing the likelihood of discovering new drugs Weaknesses - Increase in number of reagents that can be used while helping in the discovery of new drugs will also mean molecular dissimilar, but affect similar substitutes will be increasingly discoverable. - High investment costs to research and implement the technology with companies having to invest this to stay competitive

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