History and Analysis of the Pharmaceutical Industry

industry covers services and platforms with a vast variety of focal markets. The portion of the

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

account for 35 percent of total corporate sales volume and have become the fastest growing category of trade. All three companies sell to this category of trade. This trend is

The Pfizer case provides an introduction to external analysis. The case highlights the pharmaceutical industry, which has enjoyed extraordinary long-run profitability. The case also demonstrates how broad changes in broad environmental factors (i.e. demographics, technology, culture, etc.) have an impact on industry competition. The case is not especially complex, so it is not overwhelming as a first case.

computer hardware sector. The company has a high brand value in the market due to its cost

market, either as makers, customers, or both. In 2008, oil gave around 34% of the

1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

|5000 employees at the beginning of the 1990s, it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |

as the biggest market globally and became the center of the art market with a share of fortyfive percent in market sales in value (McAndrew).

both the U.S. and international markets. China represents one of the fastest growing countries for

The U.S. M&E market, which represents a third of the global industry, and is the largest M&E market worldwide, is expected to reach $771 billion by 2019, up from $632 billion in 2015, according to the 2014 – 2019 Entertainment & Media Outlook by

Moreover, one may be able to find more potential business partners in exporting to other countries. One may find a business partner that is willing to cater to and audience of Pfizer’s pharmaceutical products from another country.

Japan 47.3% in FY2011, 14.3% in North America, 13.7% market share in Asia (excluding Japan

Growth in China and other emerging markets expected increase sales by 7.8% in 2015, reaching $350 billion