Pharmaceutical industry pestel analysis

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Pharmaceutical industry pestel analysis

  1. 1. PHARMACEUTICAL INDUSTRY SUBMITTED BY:- RAHUL PAGARIA ABHIJEET KUMAR POOJA BALA NIKHAR RAVIRAJ ADITYA SHAH CHETAN DHAVAL
  2. 2. 1. Introduction 2. About Indian Pharma industries 3. Growth of Pharma industries 4. Key players 5. PESTELEE Analysis
  3. 3. INTRODUCTION  Rapid Growing sectors of the Indian economy.  Producer of low cost high quality bulk drugs and formulations.  The total market size of Rs. 1,233 bn ( domestic Rs.600 bn~48.6%) and exports Rs. 633 bn ~51.4%).  The industry grew at a CAGR of ~12.5% during the past five years and is expected to growth at a robust  CAGR of 15.1% during FY2012-17 given huge export potential.  Steady growth in the domestic formulation market.
  4. 4. GROWTH OF THE INDUSTRY  Worth of the Pharma industry – $ 6 billion  Accounts for - 1% of the world's Pharma industry in value terms and 8% in volume terms. .  Revenues generated - US$ 7.6 bn and have grown at an average rate of 10% over last five years  India is now among the top five pharmaceutical emerging markets  expected to grow five-fold to reach Rs 5 lakh crore (US$ 91.45 billion) by 2020
  5. 5. Ranbaxy* Dr. Reddy's Cipla Lupin Nicholas Piramal Sun Pharmaceuticals GSK Cadila Healthcare Aurobindo Wockhardt* Key players in pharmaceutical industries
  6. 6. PESTEL ANALYSIS  A PEST analysis is concerned with the environmental influences on a business.  The acronym stands for the Political, Economic, Social and Technological  These issues affect the strategic development of a business.  Identifying PEST influences is a useful way of summarizing the external environment in which a business operates
  7. 7. POLITICAL  There is now growing political focus and pressure on healthcare authorities across the world. This means that governments will be looking for savings across the board. -What pressures will be put on pricing? -What services will be cut? -Will the same selection of drugs be available to everyone?  Political uncertainty – no consistent policy.  Stringent Price Control .
  8. 8. SOCIAL  The increasing aging population offers a range of opportunities and threats, trick will be to capitalize on the opportunities.  There is also the problem of the increasing obesity amongst the population and its associated health risks.  Patients and home carers are becoming more informed. Their expectations have changed and they have become more demanding.  Public activism has also increased through the harnessing of new social networking technologies.  How can pharmaceutical companies get closer to consumers without over stepping the regulatory boundaries?
  9. 9. ECONOMICAL  The global economic crisis still exists yet government reports still show that the spend on healthcare per capital continues to grow.  The reduction in consumer disposable income will have an impact on those countries using health insurance models particularly where part payment is required.  These economic pressures are seeing an increased growth in strategic buying groups who are forcing down prices.  Increased pressure from shareholders has caused a consolidation of the industry: more mergers and acquisitions will take place over the coming years.
  10. 10. TECHNOLOGICAL  Technological advancements will create new business prospects both in terms of new therapy systems and service provisions. The online opportunities will see the growth in:  New info and Communications technologies.  Social Media for Healthcare.  Customized Treatments.  Direct to Patient Advertising.  Direct to patient communications.
  11. 11. ENVIRONMENTAL  There is a growing environmental agenda and the key stake holders are now becoming more aware of the need for businesses to be more proactive in this field.  Pharma companies need to see how their business and marketing plans link in with the environmental issues.  There is also an opportunity to incorporate it within their Corporate Social Responsibility programmes. Marketing and new product development should identify eco opportunities to promote as well.
  12. 12. Strengths :- 1.Cost Competitiveness 2 Developed Industry with Strong Manufacturing Base 3.Well Established R&D infrastructure 4. Access to pool of highly trained scientists, Opportunities :- 1. Significant export potential. 2. Marketing alliances for MNC products in domestic market and international market. 3.Contract manufacturing arrangements with MNCs Weaknesses:- 1. Low investments in innovative R&D. 2. Lack of resources to compete with MNCs for New Drug Discovery & Research 3. Lack of strong linkages between industry and academia. Threats :- 1.Product patent regime poses serious challenge to domestic industry unless it invests in research and development 2. R&D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement 3. Export effort hampered by procedural hurdles in India as well as non-tariff barriers imposed abroad.

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