Case Studies Essay Example | Topics and Well Written Essays - 1500 words

Case Studies - Essay Example The key market players of the pharmaceutical industry are the companies originating from USA, Japan, Europe, China, and Brazil. The medicines manufactured by the leading pharmaceutical companies are prevalent across the globe. USA is regarded as the world’s largest market of pharmaceutical and is the also the world leader in the Bio pharmaceutical research. 80 Percent of the research and development in pharmaceuticals is conducted in the laboratories of USA (Select USA, 2013). However, USA is largely dependent on the import of generic drugs and 40 percent of the pharmaceutical is consumed in USA (Select USA, 2013). It is believed that the present market situation of Biologic, over the counter (OTC), and generic drugs reflect the potential of the pharmaceutical market (U.S. Bureau of Labor Statistics, 2011). As per the reports of House of Commons, UK around 650 million prescriptions are prescribed by the general practitioners of United Kingdom (UK) itself (House of Commons, 200 5). The National Health Service which is one of the leading medical organizations of UK sells medicines worth ?7 billion every year and 80 percent of these medicines are manufactured by branded companies (House of Commons, 2005). In the UK the pharmaceuticals industry is regarded to be the most profitable sector after Finance and Tourism. Majority of the pharmaceutical company’s revenue is generated from the USA because it is the world’s largest free pricing market for pharmaceuticals. Marketing Environment Analysis The marketing environment analysis will help us in indentifying the factors that affect the company directly and indirectly. The macro environmental factors affect the activities of the company directly and the micro environmental factors affect the activities of the company indirectly. The micro environmental factors constitute of environmental factors like suppliers, distributors, competitors etc. The macro environmental factors constitute of demographic, economic, socio cultural, political, physical and legal factors. The PEST analysis will be instrumental in determining the external threats and opportunities faced by the pharmaceutical industry in the USA. Political Factors Department of Health The US department of health is a government body which regularly monitors the activities of the pharmaceutical companies. The main task of this government body is to scrutinize the license, clinical trials etc of the pharmaceutical companies. Economic The medicines manufactured and sold by the pharmaceutical companies are expensive because these companies incur huge amount of research and development costs. Post recession majority of the established pharmaceutical companies have closed down their research sites because the cost of research and development is too high and the profit earned by these companies is minuscule (The Guardian, 2013). It is observed that the most of the pharmaceutical companies are incurring losses due to the current economic slowdown (Gallagher, 2012). Socio Cultural Factors The sales of the medicines in the USA are largely influenced by the ageing population and the increasing obesity among the youth. Although, post recession the purchasing power of the common people has reduced the demand of the medicines and