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Pharmaceutical Industry in the United States - Porter’s Five Forces Strategy Analysis

United States pharmaceutical market: Latest market analysis presented

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2014-02-24 20:32:01 - Pharmaceutical Industry in the United States - Porter’s Five Forces Strategy Analysis - a new market research report on

Pharmaceutical is one of the most intense "Knowledge Driven" industries, which is continually in a state of dynamic transition.Diversities in life forms and diseases pose stiff challenge to the design of specific and targeted solutions. The process of "drug discovery/invention" is elaborate requiring on an average 8-10 years at a cost of US$ 300 million to reach a new drug to the market.

We analyze the Pharmaceutical Industry in United States in the Michael Porter´s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term



macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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