Porter Pharmaceutical Analysis

The drugs and pharmaceuticals sector consists of the following components: medicine and botanicals, pharmaceutical preparations, diagnostic substances, and biological products. Selling drugs has always been lucrative, but it will only become better. People are living longer (thanks in part to advancing pharmaceuticals) and spending many years of life in need of a cocktail of drugs creating the kind of demand for products that executives in other industries can only dream about. Rising standards of living …

…threat is very high; countries around the world, especially developing nations are tightening patent laws to encourage pharmaceutical growth. NEW ENTRANTS: The barrier of entry is very high in this industry as a very large initial investment is required to start a company. New technologies are a chance for new firms to emerge in the industry but again, this is extremely expensive. New firms can be more flexible and for innovation or leap frog competitors.