The Glbal Phamaceutical Industry

1609 Words7 Pages
Student Name : Singh, R. : Hariram, E. : Marimuthu, V.K. Student Number : 20054057 : 20101233 : 19852274 Assignment Title : The Global Pharmaceutical Industry. Date : 10 March 2012 Programme : BTECH-MANAGEMENT IV Question 1 Identify the main environmental forces currently affecting the global pharmaceutical industry? PESTEL analysis of the global pharmaceutical industry: Political * Governments set stringent regulation and is a powerful purchaser. * Governments around the world focus on pharmaceuticals as a politically easy target in their efforts to control rising health care expenditure. * Inter-country pricing disparities. Economic * European free trade agreements. *…show more content…
* Threat to intellectual property resulting from a combination of generic competition and the HIV/AIDS crisis in Africa. * More informed consumers. Opposing key drivers: * The pharmaceutical industry facing a rapidly changing environment, which offers both opportunities (such as harmonisation of regulatory requirements) but also threats (more discriminating purchasers); * The need for global presence to achieve adequate return on escalating marketing capabilities and R&D costs; * A strong focus on healthcare cost containment, such that new treatments must be justified on cost-benefit grounds, adding to development costs; * To command price premiums, new products must offer unique benefits, yet information leakage means that most products are imitated rapidly; * IT developments provide greater access to detailed healthcare information for both providers and patients, also pushing forward cost-effective treatments; * Educated consumers demanding advances in therapy; * There are opportunities to change organisational models but no-one has yet found a feasible alternative; * Continued industry consolidation. Scenarios | Big positive change (i) | No change (II) | Big negative

    More about The Glbal Phamaceutical Industry

      Open Document