* Early 1940s – Introduction and success of penicillin
* 1960s – Expansion of the industry
* 1970s – Introduction of high regulatory controls and fixed periods on patent protection of branded products
PORTER’S FIVE FORCES ANALYSIS
* Barriers to entry are very high, the cost of R&D is very important.
* Though some new small laboratories appear on the market especially with generic products.
* Generics: as the patent of many worldwide medicines is expiring, more generic products appear on the market. The cost of emitting generic products is less expensive than patent brand products.
* Very high competitive situation. Big companies are taking the majority of sales.
* Though small companies are sometimes quicker in producing generic products
* US market represents 60% of global sales (see article..)
* Supplier power is low. Big companies are dictating its rules. But the power of big wholesalers is important as it represents an important turnover (3 wholesalers=38% of turnover of Pfizer).
* Buyers power depends on countries. It can be considered as low worldwide as medecins on prescription give no choice to the customer. Though US medical associations (MCO) defend buyers rights and negotiate prices with the help of the State.
Political Economic Social Technological analysis
Over the years, the industry has witnessed increased political attention due to the increased recognition of the economic importance of healthcare as a component of social welfare. Political interest has also been generated because of the increasing social and financial burden of healthcare. Some welfare states are in debt and are examinated the medicine to be reimbursed. A particular attention is given to this industry to reduce costs.
Economic Value Added:
The Social Dimension:
The effect of the...