Strategic analysis of the pharmaceutical industry

Further strategic development of the world pharmaceutical industry shows clearly its consolidation, concentration and strong market orientation.

Strategic analysis of the pharmaceutical industry

Send by email 3D Competitive Analysis As the pharma industry transitions to a more challenging product life cycle profile, companies need to employ innovative approaches for assessing competitors, stakeholders, and markets Apr 01, Pharmaceutical Executive Stan Bernard Belief that the Earth was flat was nearly universal until about the 4th century BC, when Greek scientists and philosophers calculated that the planet was actually spherical.

These days, despite evidence to the contrary, many pharmaceutical companies perceive their competitive world as a relatively flat landscape. These simplistic, often myopic approaches place companies at risk from competitive threats and dangerous blind spots.

As the pharmaceutical industry transitions to a shorter and less profitable life cycle model, competitive planning for brands and companies has become critical for growth. The foundation of this planning is competitive analysis, the process of assessing and understanding the competitive world to help design winning strategies and tactics.

The new pharmaceutical environment demands 3-D Competitive Analysis, a fundamentally different approach that provides a more robust, insightful, and actionable understanding based on three key dimensions: Competitive Personality Analysis Traditional competitive analysis focuses on profiles of key competitors and their products.

Like people, every company has a distinct personality. The personality analysis, by contrast, addresses "how" questions such as "How does a company think and act? For example, many companies have signature methods for launching products. Pharma professionals rarely consider their own company as part of the competitive mix, but corporate self-analysis is an integral part of 3-D Competitive Analysis.

The objective is twofold: Self-analysis is essentially a mirror image of the company profile and personality analysis conducted on your competitors. Predictable competitors are easy prey. Strategic Stakeholder Analysis Traditional competitive analysis focuses primarily on pharmaceutical customers, physicians, and patients.

Because the power of doctors and patients is waning. A recent IMS analysis revealed that less than 15 percent of all US chronic care prescriptions are sensitive to physician promotion. Increasingly, prescription power is being transferred from doctors and patients to "strategic stakeholders.

In many cases, the relative impact of strategic stakeholders on brand sales can exceed that of doctors and patients. And because they play an important role in the adoption and use of specific brands, strategic stakeholder analysis should be part of every 3-D Competitive Analysis. The competitor with the best understanding and impact on this ecosystem will gain substantial competitive advantage.

Market Winning Analysis Three-Dimensional Competitive Analysis takes a holistic view to competing by considering not only marketing and sales factors, but also other market and environmental considerations, including technology, regulation, legalities, public policy, partnerships, finances, reimbursement, manufacturing, and distribution elements.

The analysis accounts for different geographies, markets, and cultures as well as past, present, and future time frames. Analysts should identify, prioritize, and weigh major market factors, then rate each competitor, including their own company, on the prioritized market elements.

This market winning analysis matrix can help to identify how competitors are thriving in a particular market, and how your company compares. Market winning analysis highlights an essential distinction between traditional competitive analysis and 3-D Competitive Analysis.

Standard competitive analysis is primarily reactive and defensive: What can be done to prevent your competitor from threatening and undermining your company? On the other hand, 3-D Analysis adds a proactive, offensive mindset: How can you force your competitor to react to your company and brand actions.

This balanced view of both competitive threats and opportunities reflects the common phrase that "the best defense is a good offense. Companies should not rely on competitive intelligence vendors, whose expertise is primarily competitive surveillance and data gathering.

Instead, use either internal competition experts or external competition consultants who have expertise in comprehensive competitive analysis, strategy, planning, and execution. Companies using 3-D Competitive Analysis possess the strategic framework to support advanced competitive planning and the competitive edge to win in an increasingly complex and multi-dimensional pharmaceutical world.

Strategic analysis of the pharmaceutical industry

Stan Bernard is president of Bernard Associates, a pharmaceutical industry management consulting firm.Pharmaceutical Market Research Reports: TMR tracks the pharma industry to offer latest market trends, analysis, forecasts, and pharmaceutical company profiles Industry Verticals Automotive & .

A Study on the Impact of PEST Analysis on the Pharmaceutical Sector: The Bangladesh Context Mohammad Nayeem Abdullah, Robaka Shamsher PEST analysis, pharmaceutical sector, industry and macro economic factors Kotler () claimed that PEST analysis is a useful strategic tool for understanding market growth or decline, business position.

Pharmaceutical industry is an integral part of healthcare industry, manufacturing, development and research of medicine and various dosage form formulation are the main functions performed by the pharmaceutical industry.

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Strategic sourcing offers pharmaceutical companies an opportunity to evaluate the current state of their purchasing practices and use our resources to supplement internal teams with people, time, technology, and market intelligence.

The global pharmaceutical industry revenue is forecasted to reach an estimated $1, 0 billion by , with good growth over the next five years (). 3D Competitive Analysis.

As the pharmaceutical industry transitions to a shorter and less profitable life cycle model, competitive planning for brands and companies has become critical for growth.

Strategic Stakeholder Analysis. Traditional competitive analysis focuses primarily on pharmaceutical customers, physicians, and patients.

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