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
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.
* 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