The Global Pharmaceutical Industry

2747 WordsOct 23, 201111 Pages
Strategic Management Student name: Thivhilelililio Mkojiholo Assignment Title: The Global Pharmaceutical Industry Date: 2011 August 20 Table of content Contents Page 1. Introduction 4 2. Pestel analysis of the global pharmaceutical industries 5-6 3. Drivers for change in the future of pharmaceutical 7 4. Five forces analysis on the global pharmaceutical industry 8-10 5. Threats to a big pharmaceutical company 11 6. Conclusion 12 7. Bibliography 13 Introduction The pharmaceutical industry According to (Johnson et al, 2008:56) the pharmaceutical industry can be traced to the late nineteenth century. It develops, produces drugs for use as medications.…show more content…
Marketing and new product development should identify eco opportunities to promote as well. (Shaw, January - 19 – 2011). LEGAL It embraces legislative constraints or changes such as health and safety legislation International agreements on Political Economical Changes to the health care funding Introduction of stringent price controls Lack of public and political support for the industry (Johnson, Scholes & Whittington, 2008:610). Introduction of price or reimbursement controls The reduction in consumer disposable income. Increased pressure from shareholders has caused a consolidation of the industry: more mergers and acquisitions will take place over the coming years. Shaw (2011). Switching to generics to save costs Social Technological The increasing aging population creates pressure to the health care funding system. Patients are becoming more informed. Shaw (2011). Payers are establishing generic drugs as a first-line treatment option, with a patented drug used if generic fail. (Johnson, Scholes & Whittington, 2008:610) Payers use variety of methods to control pharmaceutical spending Complex and costly clinical trials Decline R&D productivity with lengthening development times (Johnson, Scholes & Whittington, 2008:614) Increase of the biopharmaceuticals Growth in the generic market Environmental Legal A move to become health information
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