Porter's Five Forces Analysis Pharmaceutical Industry

Their prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store.

A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them.

Nowadays it seems like legal drugs are more expensive than illegal ones. This dilemma occurs because the pharmaceutical industry affects the economy significantly. Although the United States is a mixed market economy, there are instances where the economy seems like a free market economy. A free market economy allows companies to determine the prices of goods free from government intervention. The pharmaceutical industry, despite several regulations set by the food and drug administration, is a free market economy. Meaning, the pharmaceutical sector lacks government regulation and has control over the prices of specialty drugs desperately needed by the public. Therefore, the pharmaceutical industry being a free market negatively affects the

In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential.

In the startup phase of Lululemon Athletica they had a high bargaining power. This was due to a desire to work with leading fabric suppliers and increased investments. A majority of their apparel production was in Asia however they are willing to use Canada as well as the United States for production facilities as they are required. There are many suppliers competing for retailer’s business. Common materials used in apparel making such as rubber and cotton are readily available. This gives Lululemon a lot of choice in picking who they want to buy supplies from. In this situation, the suppliers have a low level of bargaining power.

Cadbury was originally founded by John Cadbury where he started a stall at Birmingham in 1824. John Cadbury retailed handmade cocoa and drinking chocolate which were produced by using a pestle and a mortar. As tea, caffeine, cocoa and drinking chocolate were deemed beneficial when compared to alcohol, John Cadbury was certain on establishing the production of his company on a viable scale and John Cadbury purchased a four-story warehouse for his production to take place. As a result, John Cadbury has successfully produced more than 10 assortments of drinking chocolate and 11 different cocoas by 1842.

The bargaining power of suppliers is moderate because it depends on the size of the company and the particularity of the material. To keep its brand unique and differentiated, the choice of suppliers for Disney is limited. Especially for some large suppliers, they are in a good position to negotiate because the switching cost for Disney is too high. While other small companies and vendors do not have the advantage to bargain with Disney company, they would want to cooperate with Disney as they know that Walt Disney company is trustworthy and its brand can bring them more opportunities.

Apple has always surprised the world with its innovation starting from the invention of computer circuit board of Apple I in 1976 to world’s most successful personal computer and electronic device manufacturer. They brought revolutionary changes in user experiences in using personal computers and currently smart devices. The company was always under the supervision of visionary leaders and effective strategies applied by them made the Apple what it is today. The company faced several ups and downs during its operating timeline and remained successful in sustaining their position in the market as a leader. The Harvard Business School Case study of Apple Inc. focuses on the growth and strategic management of the company accordingly.

The model of the Five Competitive Forces, developed by Michael E. Porter, is based on

The retail pharmacy industry has two 800-pound gorillas: Walgreens and CVS. Both companies have over 7,000 pharmacy stores and both count on prescription drugs for about 65 percent of their revenue. Competition between Walgreens and CVS pharmacies is direct and aggressive. For ex: CVS recently ran an advertisement in millions of circulars instructing Walgreens customers how to transition their accounts to CVS, and this behavior has continued as Express Scripts customers can no longer use Walgreens as their prescription drug provider and CVS works to acquire this market share.

Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are

The threat of new entrants for the bag industry is high since putting up a bag business is easy. There are a lot of different companies that are already in this kind of industry. There are international and local businesses that have successfully established their brands here in the Philippines. There is an increasing percentage of local brands here in the Philippines which indicates that the barriers to entry are low in the bag industry. Entering in this type of business can be easy for entrepreneurs who already have enough capital to manufacture bags, who already have a background in this type of industry, who are updated in the current fashion trends and those who already know a supplier and a manufacturer that they can do business with. To be able to enter in this type of industry, you will be needing a money amounting to Php 67,416 for the costs that will be incurred for the first month of the operation of the business. Rent for the bazaar amounting to Php 7,500 and Php 300 for the storage, Php 7,032 for the necessary licenses and permits, Php 991.2 for the electricity, Php 300 for the transportation expense, Php 999 for the usage of

1. What we know about profit pools is that: ‘Profits don’t necessarily follow revenues’ and that ‘Today’s deep revenue pool may become tomorrow’s dry hole’. In this article we are focusing on Apple and the way how it managed to recognize the variability of profit, and along with it, could find out the best way of realizing it. Apple has three main businesses as top priority: Macintosh, iPod-iTunes and iPhone. These are the pioneers of superior improvement in PC, music and smartphone industries.

Below is Porter’s Five Forces Model applied to the Saudi Food & Beverage industry in order to assess its attractiveness.

Wimpy is a franchise in South Africa that is headquarted in Johannesburg and owned by Famous Brands. The first Wimpy was created by Edward Gold in 1934 in Bloomington, Indiana and was called “Wimpy Grills”. The first Wimpy in South Africa was founded in 1967 in Durban. When Famous brands Limited bought Pleasure Foods in 2003 it acquired Wimpy. In February 2007, Famous Brands acquired the UK-Based Wimpy and became in charge in collecting the franchise fees from the other franchises. By 2011, Famous Brands Ltd had 509 Wimpy restaurants in South Africa, making it the largest franchise in the Wimpy franchise system.