CARLA LLANEZA
What is the competitive landscape of this
industry in the USA? Where does your
company fit into this landscape?
For the pharmaceutical industry,
the amount of competition that takes place is large and continues to grow
today. Specifically, there seems to be a large investment in the generic brand
drug than there is the brand named drug. This movement towards investing in the
generic market is because the prices are so low that other investors can use
that as a way to buy from them. However, does this new competitive edge and the
landscape by which it seems to lay out go against the basics of business
etiquette? That’s a question worth asking as the landscape continues to grow
and expand over time.
Another
segment of the landscape in the pharmaceutical group would be the barriers to
entry. There are very high barriers in a company, which demands innovation and
undoubted trust. This industry has been around for years on end, the idea to
compete in such an industry is one that includes the main idea which would be
competing in price. The generic brands are increasingly popular amongst
customers because of the cost efficiency of the product (IBIS World). The
generic brand continues to be a “cheaper” option which always is a factor in
the competitive landscape of companies. In specific, the CVS brand will usually
be a few dollars cheaper than the “Tylenol” brand at the supermarket. This is
strategic because customers know and understand the main ingredient in the “Tylenol”
which happens to be Ibuprofen. This definitely foreshadows an even greater and
larger boom for the generic brand companies. Unfortunately, the brand name
companies being at the quality level they are will take a larger stab. The idea
that the generics are taking off because of price is a way in showing how the
economy in the United States is doing. There is less revenue therefore
customers would rather spend it on cheaper drugs than the more expensive brand
named drugs. Therefore why is it that the competition has continued to stay
alive if there is a clearer and cheaper option?
There is no
denying that the generic company does not have as many advertisements as the
brand name products. However, now there are also strategies by which brand name
products are creating to veer customers away from purchasing their products.
(IBIS Wrold). The United States continues to be a powerhouse in the market and
will continue to grow so long as the competition between the generic and brand
name pharmaceutical companies remains alive.
http://clients1.ibisworld.com.proxyau.wrlc.org/reports/us/industry/competitivelandscape.aspx?entid=488
Hi Carla,
ReplyDeleteInteresting post! I like how you explored the generic v brand name drugs, as well as other competitive landscape aspects. Your analysis was good as well. I like how you asked questions and even compared generic medicine and the state of the economy. Also, remember to post at least 2 comments per blog entry!
This was a very interesting post Carla, I liked how you compared the generic versus the brand name drug and then talked about the barriers to entry . It helped me create a better understanding about the pharmaceutical industry. But I would've also liked to see what the barriers of exit are?
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