Professional Documents
Culture Documents
Forces Analysis
of - INDIAN
PHARMACEUTICA
L INDUSTRY
Submitted By
Group-2
Members:
Pankaj Bhatt
Anurag Sarkar
Ashish Gandotra
Chopalli Sai
Jyothi
Industry
The IndianOverview
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 3.1-3.6% of the global pharma industry by value
Largest Exporter in Generic Drugs
Contributed 2.67% to the India's GDP
Attractiveness of
Industry
Indian
Pharmaceutical industry is expected to expand at
a CAGR of 15.92 per cent to US$ 55 billion by 2020
Porters Five
Forces
Barriers to
Entry
Less investment in fixed assets
Economies of Scale
Brand Equity
High Working Capital
High chances of failure in case of rejection of drug by
regulatory body
Creating Brand Awareness and franchisee amongst
doctors for long term survival
Access to Distribution
Learning Curve Advantages
Moderate
Government Policies
Barriers
Buyers
Power
According to ICICI
Lombard and India Today
reports
Govt. policies
contribute for some
drugs (Price Ceiling)
Suppliers
Power
Rivalry among
Competitors
Threat of
Substitutes
Substitutes that are available in
India:
Ayurveda
Homeopathy
Yoga
Threat of Substitutes
contd.
Availability of Substitutes
Ayurveda, homeopathy, yoga
have a good stronghold.
Price value of substitutes
Relatively inelastic.
For instance, in drugs used for
chronic conditions, patients often
form loyalties to one particular
generic because of tablet shape
or color.
Also, in drugs used for some life
threatening condition may have
no other perfect substitute for the
patients to choose.
Availability of complements
Price values
Threat
of complements
from
substitutes
Very expensive
moderate.
Conclusio
n
Pharmaceutical industry in India has enormous
potential of growth.
In order to enter and survive in this industry
the company entering should offer a
differentiated product or a therapy
A new firm should think twice as the industry is
labour intensive and capital intensive
There is a possibility of high initial investment
associated with it which tends to discourage
new companies to enter into the market
There is also high risk and high chances of
failure if drug is not approved by regulatory
bodies