A PRESENTATION ON :

PRESENTED BY:POONAM ACHARYA (A010)

NIKET JAIN (A035)
APEKSHA NARULA (A042)
VIDHI AGARWAL (A073)

INTRODUCTION
Worlds Third largest in terms of volume and
14th in terms of value
Major pharmaceutical hubs- Mumbai,
Hyderabad and Ahmedabad
Mix of public and private enterprises
Indian pharmaceutical market size is expected
to grow to US$ 85 billion by 2020
Manufacturing costs in India are approximately
35-40 per cent of those in the US due to low
installation and manufacturing costs

SWOT ANALYSIS
A structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities and
Threats involved in a business
Strengths:- characteristics of the business that
give it an advantage over others
Weaknesses:- characteristics of the business that
give it an disadvantage over others
Opportunities:- elements that project could
exploit to its advantages
Threats:- elements in the environment that could
cause trouble for the project

PORTER FIVE FORCES

ANALYSIS
Porter model first detailed in Competitive
Strategy by Michael Porter in 1980
The aim of the model is to analyse the
basic forces that affect industry
profitability and provide a guide to
successful strategy
To a large extent it applied basic economic
concepts like the structure-conductperformance paradigm to general business
analysis

INDUSTRY COMPETITION
Sometimes rivals compete
aggressively and sometimes rivals
compete in non-price dimensions
such as marketing
Low concentration ratio in this
industry
Top 5 players own a mere 18% of
market share
Government subsidies
Need to invest in R&D

BARRIERS TO ENTRY
Profitable markets that yield high returns will
draw firms. This results in many new
entrants, which will effectively decrease
profitability.
Economies of scale
Creating brand awareness
Winning the trust of the doctors and patients
Setting up efficient distribution channels
Product differentiation due to patents

BARGAINING POWER OF BUYER

End user of the product is different
from the influencer
Consumer has no choice but to buy
what doctor says
Buyers are scattered and they as
such do not have much power in
pricing the product

BARGAINING POWER OF SUPPLIERS

Pharmaceutical industry depend upon
various organic chemicals
Very competitive and fragmented industry
Chemicals are largely a commodity
Suppliers have very low bargaining power
The industry can switch from their
suppliers without incurring very high cost

THREATS OF SUBSTITUTE
One of the great advantage of
pharmaceutical industry
Demand for pharmaceutical products
continues and industry thrives
Traditional medicine more used than
generic medicine

COMBAT STRATEGIES
Shift from opportunistic strategy to
one of focus
Companies should shift from a fully
integrated pharma company model
to one that uses partnerships to
manage risk and return

RECOMMENDATION
Better transport and medical
infrastructure.
Better data research and collection.
Higher funding in R&D
Stricter rules regarding the quality of
drugs
Better government policies for
payment of medical expenses.
Wider expansion of medical facilities
in rural areas.