Industry Report

Carla Llaneza
Business 1.0
Professor Lamel
14 February 2013

Industry Report- Pharmacies and Drug Stores in the U.S.

1. ·       As you read about your industry, what did you find most interesting?
   While reading about the pharmaceutical industry I found most interesting the fact that because of the increase in competition amongst these companies in the most recent years, there has been pressure for pharmacies to open for longer hours and more drive thru locations to become available. This is all emphasized in order to create an influx in customers. I also found that the new process of "mail-ordering" pharmaceutical products has caused a heavy amount of competition because they typically carry cheaper prices.
   
   
   ·       What questions do you now want to explore further in your project?
   Some of the questions I would like to explore further in my project would be the question of what it takes to be a competitor in this business. I would like to understand the patterns and cycles that the company sees profit and why it seems to be this way. I believe in answering this question, I will learn a lot about the different factors that go into the structure of the business as a whole. I also would like to further understand how even though the industry has witnessed a pretty steady increase in business since the 20th century, what is in store for the competitors? What will they be faced to decide between for the future in regards to mail ordering and the internet?
   
   
   ·       What initial thoughts do you have about the future of this industry?
    I believe there will always be a need for pharmaceutical products and therefore the "life expectancy" of this industry will ultimately never fade away. However, I do believe that there will be some struggle in the near future with the government having plans to cut spending. In the moment, I strongly believe the pharmaceutical industry has a promising future because it will always be in high demand.
   
   
   ·       Share one interesting data point about your industry and/or assigned company. 
   One interesting data point about our industry is the fact that pharmaceutical products, mostly over the counter medication and prescription drugs, only make up 74% of sales in business. The other 26% is made up of purchases done in the convenience area of the stores with products known as "fill-ins". 
   
   
   References:
   
   
   http://clients1.ibisworld.com.proxyau.wrlc.org/reports/us/industry/currentperformance.aspx?entid=1054