Faculty of Business Studies
B301B: Making Sense of Strategy II
Second Semester 2013 – 2014
Name: Bilal Zaza
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Introduction: this paper illustrates the Saudi Pharmaceutical market. it shows the factors that effects on the market. it also, shows the domestic demand conditions of the industry. as well as the related and supporting industries. it shows several local characteristics about firms and the nature of competition in this industry. The importance of the government in supporting this industry. Last, the porters five forces analysis have been taking into consideration throughout the research, in order to cover the significant aspects while viewing the mentioned market.
The Market:
Saudi Arabia Pharmaceutical industry recorded an important raise during the years owing to variety impacts like increasing ageing population mostly in the above 60 years bracket, changing demographics and growth in the incidence of lifestyle diseases, rose spending power, result driven government initiatives to promote the increase of indigenous pharmaceutical companies. The pharmaceutical industry in the country still emerging. The drug manufacturing is at a relatively nascent stage owing to many challenges, which need to be resolved (Dallas, 2013).
Pharmaceuticals products sales in Saudi Arabia are expected to surpass US$ 7 Billion by 2018 as compare to US$ 4 Billion 2012. Saudi Arabia is expected to emerge as one of the fastest growing markets in future. The country is one of the most developed and technologically advanced medical sectors in the GCC Region with modern equipment and amenities (Dallas, 2013).
Given a sizeable population base and relatively active domestic pharmaceutical manufacturing segment, Saudi Arabia was...
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In order to sustain the market share in this highly competitive industry, the pharmacies have to establish and maintain strong working relationships with PBMs that have power to divest particular clients from a pharmacy by denying reimbursement privileges to their customers. Buyer Power Strong It is not hard to obtain the same drugs from different sources, so the customer loyalty is virtually non-existent and the pharmacies have to try extremely hard to sustain their consumer base. Threats of substitutes Weak There are very few alternatives to drugs. Alternatives are practically limited to traditional medicine.
It is said that name-brand prescription drugs in Canada cost approximately 40% less than they do in America. But it is illegal for the transport of drugs from Canada to America. Why? It is because Pharmaceuticals are simply greedy and prey on victims that are in need of their products to survive. It makes it hard for large households on a budget to purchase drugs to keep healthy. The way pharmaceutical companies look at their clients is like this: It is a life or death situation for them so the customers have to buy it in order to survive. According to the annual Fortune 500 survey, the pharmaceutical industry, expectedly, made it at the top of the list of the most profitable. The top seven pharmaceutical companies took in more profit-money than the top seven media companies, the top seven airline companies, the top seven oil companies, and the top seven car manufacture companies. (…cost so much, CNN) The profits of pharmaceutical companies are outrageous and extreme. There are many reasons to why these companies are greedily taking advantage of customers. The number one reason is because people who are need of these prescriptions have no other choice but to purchase them.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
Dietary supplements are used to add additional nutritional value to the diet. Some common forms of supplements include: vitamins, amino acids, minerals, herbs, and enzymes, and can be found in a multitude of forms such as capsules, liquids, gel caps, powders, and tablets. Dietary supplements are becoming increasingly popular among Americans today. According to the Centers for Disease and Control, “Over half of the adults in the U.S. use at least one type of dietary supplement, the most common being multivitamins.”1 Many use these vitamins because they are believed to present a number of benefits, such as helping or treating diseases, etc. While dietary supplements can be beneficial to your health; Americans should also be cognizant of the health
This paper analyzes the main economic indicators related specifically to one of the largest pharmaceutical company Pfizer, Inc such as overall performance, revenue, net income, research and development, cost and expenses. There are certain economic indicators that do not apply to individual companies, but influence their economical forecasts. Such factors as inflation and unemployment rate pertain to an industry or region and such factors as political instability or any force major conditions will affect the market analyses even they are not an economic indicators. There are many more factors that affect economic predictions and their detailed analyses are presented in http://www.economic-indicators.com, web site for tracking US economy.
Throughout history disease has run rampant taking many lives with every passing day. Finding a cure or even just a tool in the battle has been the main focus of scientist throughout time. This focus is what brought us the discovery of antibiotics. Over the years antibiotics have been misused by patients, over prescribed by physicians and have led to resistant strains of bacteria.
Opium, the first opioid, is derived from the sap of opium poppies, whose growth and cultivation dates back to the ancient civilization of Mesopotamia around 3400 BC. Egyptians and Persians initially used opium. Eventually spreading to various parts of Europe, India, China, and the Middle East. During the 18th century, physicians in the U.S. used opium as a therapeutic agent for multiple purposes, including relieving pain in cancer, spasms from tetanus, and pain attendant to menstruation and childbirth. It was merely towards the end of the 18th century that some physicians came to recognize the addictive quality of opium.
They increase the spending on connectivity and human resources (Saudi Arabia Emergence Innovation Kingdom, 2014). Saudi Arabia is the largest economy in the Middle East and the richest Arab country. The economy of Saudi Arabia is entirely based on oil (Smetoolkit.org, 2014). Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world (Saudiembassy.net, 2014). Exports now in the kingdom include all economic sectors.
In recent years’ health reform has been a driving force in the United States political system. If you watch the news, you will understand how citizens, the government, or the economy are or might be affected by some sort of change in medical regulation. One of these hot topic issues is the cost of prescription drugs. Every major drug market besides the United States regulates the price of drugs in some way (Abbott and Vernon). By the United States not doing so, many believe it opens consumers up to being exploited by large pharmaceutical companies.
Due to longer life expectancy and the rapid increase of the world’s population, the pharmaceutical industry is becoming increasingly important. The problem of aging population and high healthcare cost is particularly serious in Japan. This essay will focus on a Japanese drug maker – Takeda Pharmaceutical Company Limited (Takeda, the company). First, in order to provide background information, the current business model and relevant information of Takeda will be outlined and analysed based on financial data and the company’s annual reports. Second, the essay will examine the most significant challenges that the company has faced over the past five years, including the cause and effect behind this challenges. Finally, the discussion will be looking at the pharmaceutical industry as a whole, exploring the merger and acquisition activities of large pharmaceutical firms in the world, i.e. Big Pharma.
Janssen is a division of Johnson and Johnsons that primarily focus on diseases that can help develop new strategies in improving prevention as well as developing vaccines and its accessibility to the world. The pharmaceutical company of J&J invests large amounts of money in research and development of its products. The competitive environment of Johnson and Johnson is very high for pharmaceutical companies due to which that many companies are releasing drug products and other devices. However, this company does not face any potential competitors due to which that it is a large company that provides a wide range of opportunities such as finances, and experiences. This leads to advantages compared to other competitors due to whom the pharmaceutical companies creates a barrier because of the high cost in research and development in medicine. In addition, Johnson and Johnson have to make sure that it has many suppliers for different categories for their products especially in medicine if one supplier causes shortages. Although suppliers do not bargain for the price values of its products, it still influences the price in the market in different countries. In addition, finding
For commodity generic drugs, Teva has an opportunity to expand its core business into emerging markets, but there it will have to face institutional voids because such markets are driven by physicians and both physician and other people are not aware about the effectiveness of generic drugs. To cope with the challenge of institutional voids Teva have to look for some competent small pharmaceutical firms for acquisition and some big firms for the joint venture. For changing the perceptions of people and physicians, Teva will require to run marketing campaigns and direct approaches to physicians to develop a market for their products.
Achievement is not coming easily. Achievements require energy as well as a good plan and strategy to can achieve it successfully that is what United Arab Emirates (UAE) health care system did. The ambition of the UAE health care system to become one of the favorite destinations for local patients and a center for international medical tourists need high quality and cost-effective procedure and treatment, that is what makes UAE put long-term strategy to achieve this aspiration (WHO, 2009). In order to support the health care system, the UAE government increasingly focused its effort to attract unique high-level health care providers to the UAE. However, despite the strong support of the UAE government, health care providers, still facing major challenges to grow and operate in the UAE (Eid. n.d). There are many challenges faced UAE health care system, but the government and the health care system reject Surrender and still confront challenges without fatigue or boredom from its side.
If I had to market to Saudi Arabia I would concentrate on functionality with less of an emphasis on the sensitivity of the consumer. Or I would chose to concentrate my efforts on the home-sick American military and professionals to provide them with a "little taste of home".
Would like to start to put most of reasons that make medical errors in Saudi Arabia such as: some doctors cheating with their licensed, operating on the wrong body part, infection infestation, baby switchers.