pharma porter model final
Post on 13-Apr-2018
232 Views
Preview:
TRANSCRIPT
-
7/24/2019 Pharma Porter Model Final
1/11
Porters FiveForces Analysis
of - INDIANPHARMACEUTICA
L INDUSTRS!"#itte$ %y
&ro!'-(Me#"ers)Pankaj BhattAnurag SarkarAshish GandotraChopalli SaiJyothi
-
7/24/2019 Pharma Porter Model Final
2/11
The Indian pharmaceuticals market is third largest in terms of volume
and thirteen largest in terms of value
India is the largest provider of generic drugs globally with the Indian
generics accounting for 20 per cent of global exports in terms of volume
The countrys pharmaceuticals industry is expected to account for
about 3.!3."# of the global pharma industry by value
$argest %xporter in &eneric 'rugs
(ontributed 2.")# to the India*s &'+
In$!stry
*vervie+
-
7/24/2019 Pharma Porter Model Final
3/11
In$ian P,ar#ace!tical in$!stry is e'ecte$ to e'an$ ata CA&R of ./01( 'er cent to US2 // "illion "y (3(3
In$ia is e'ecte$ to ran4 a#on5st t,e to' t,ree',ar#ace!tical #ar4ets in ter#s of incre#ental 5ro+t,"y (3(3
In$ias cost of 'ro$!ction is si5ni6cantly lo+er t,ant,at of t,e USA an$ al#ost ,alf of t,at of E!ro'e
A s4ille$ +or4force as +ell as ,i5, #ana5erial an$tec,nical co#'etence
Contin!o!s s!''ort fro# &overn#ent
Attractiveness of
In$!stry
-
7/24/2019 Pharma Porter Model Final
4/11
Porters Five
Forces
-
7/24/2019 Pharma Porter Model Final
5/11
%arriers to
EntryLess invest#ent in 6e$ assetsEcono#ies of Scale
%ran$ E7!ity
Hi5, 8or4in5 Ca'ital
Hi5, c,ances of fail!re in case of re9ection of $r!5 "y
re5!latory "o$y
Creatin5 %ran$ A+areness an$ franc,isee a#on5st
$octors for lon5 ter# s!rvival
Access to Distri"!tion
Learnin5 C!rve A$vanta5es
&overn#ent PoliciesModerate Barriers
-
7/24/2019 Pharma Porter Model Final
6/11
According to ICICI
Lombard and India Todayreports
En$ !ser of t,e 'ro$!ctis $i:erent fro# t,ein;!encer
Cons!#er ,as noc,oice "!t to "!y +,at$octor says
In so#e cases< can
s+itc, to s!"stit!tes
&ovt0 'oliciescontri"!te for so#e$r!5s =Price Ceilin5>
%!yers
Po+er
-
7/24/2019 Pharma Porter Model Final
7/11
Mo$erate 'o+er in in;!encin5 t,e 'rice
T,ey can re$!ce t,e 7!ality of t,e c,e#icals
T,ey can even +it,,ol$ s!''ly
May not ,ave ,i5, s+itc,in5 costs in #ost sit!ations
S!''liers #ay 5o for for+ar$ inte5ration =*rc,i$ C,e#icals ?Stri$es S,as,!n C,e#icals>
Di@c!lt to s+itc, s!''liers =For life savin5 $r!5s>
Moderate bargaining power
S!''liers
Po+er
-
7/24/2019 Pharma Porter Model Final
8/11
Do#inance esta"lis,e$ "y t,e lar5e ca' co#'anies
C!t t,roat co#'etition
Pro$!ct $i:erentiation an$ 'atents
Hi5,ly fra5#ente$
Consistently re$!ce 'ro6ta"ility $!e to reverse en5ineerin5 of$r!5s "y co#'etitors
Ra'i$ Ac7!isitions an$ Mer5ers "y eistin5 6r#s to e'an$ #ar4ets,are
=Stri$es Arcola" ac7!irin5 S,as,!n P,ar#ace!ticals>
=L!'in P,ar#ace!ticals ac7!irin5 &avis P,ar#ace!ticals< a US6r#>
Rivalry a#on5
Co#'etitors
-
7/24/2019 Pharma Porter Model Final
9/11
Substitutes that are available inIndia:
Ay!rve$a
Ho#eo'at,y
!ar4s an$ Talis#ans
%iotec,nolo5y- Ste# Cell Researc,
o5a
T,reat of
S!"stit!tes
-
7/24/2019 Pharma Porter Model Final
10/11
Availa"ility of S!"stit!tes Ayurveda, homeopathy, yogahave a good stronghold.
Price val!e of s!"stit!tes Cheaper than allopathy.
Price elasticity of in$!stry
$e#an$
Relatively inelastic.
For instance, in drugs used orchronic conditions, patients otenorm loyalties to one particulargeneric because o tablet shapeor color.Also, in drugs used or some lie
threatening condition may haveno other perect substitute or thepatients to choose.
Availa"ility of co#'le#ents !ther pharma drugs,biotechnology "may becomesubstitutes in the uture#
Price val!es of co#'le#ents $ery e%pensiveT,reat fro# s!"stit!tes #o$erate0
T,reat of S!"stit!tes
cont$0
-
7/24/2019 Pharma Porter Model Final
11/11
Concl!sio
nP,ar#ace!tical in$!stry in In$ia ,as enor#o!s'otential of 5ro+t,0
In or$er to enter an$ s!rvive in t,is in$!stry
t,e co#'any enterin5 s,o!l$ o:er a$i:erentiate$ 'ro$!ct or a t,era'y
A ne+ 6r# s,o!l$ t,in4 t+ice as t,e in$!stry isla"o!r intensive an$ ca'ital intensive
T,ere is a 'ossi"ility of ,i5, initial invest#entassociate$ +it, it +,ic, ten$s to $isco!ra5ene+ co#'anies to enter into t,e #ar4et
T,ere is also ,i5, ris4 an$ ,i5, c,ances offail!re if $r!5 is not a''rove$ "y re5!latory"o$ies
top related