분야
ppt2.First condition
3.Second Condition
4.Third Condition
5.Fourth Condition
Eli Lilly's present day global manufacturing plants. In 1998, Eli Lilly formed a joint venture with Icos Corporation (ICOS), a Bothell, Washington based biotechnology company, to develop and commercialize Cialis for the treatment of erectile dysfunction.
From 1995 to 1999, Merck introduced a total of 15 new drugs, including Crixivan, a protease inhibitor used in the treatment of HIV; Fosamax, used to treat osteoporosis; and hypertension medication Cozaar. The eight drugs accounted for more than $1 billion in sales in 1996, about ten percent of the company's total drug sales. Through its joint venture with Johnson & Johnson, Merck also received U.S. approval in April 1995 for the antacid Pepcid AC, an OTC version of Merck's Pepcid.
Five forces analysis Degree of
forces
strength
Reasons
Rivalry among firms
Medium It is not directly related with product maker. They can provide their product with pharmacies.
Threat of
new entrance High There are still many entry barriers
Such as high capitalization, regulations, big firms in industry with patents
+Prescription requirement regulations.
Bargaining
Power of suppliers
Low Components of pharmaceutical product is not valuable, inexpensive, easy to get.
Bargaining
Power of buyers
Low Before the prescription regulations buyers can get pills more easily.
But after prescription requirement regulations their option decreased.
Threat of
substitute
Low It can say “ there are no substitute”
Because of high regulations, product which have similar functions with pills hard to get.
