Executive Summary
CVS Health Corporation is an American retail pharmacy and healthcare company. The firm is one of the primary pharmaceutical industry players in the United States. The U.S pharmaceutical market is projected to grow continuously in the future (Cognizant Reports). This growth is because of the rise in the aging population, in addition, to increase the cost of the prescription. The biggest pharmaceutical firms in the U.S include Pfizer Inc, Johnson & Johnson, and AbbVie Incorporation, which is a new entrant in the sector. The key forces in the pharmaceutical sector include the amount spend in medical research and development, legal suits filed against the firms on their types of drugs, the idea of brand name vs. generics and the rise of ‘Thought Leaders’ who influence other doctors to administer a company’s medicine to their patients.
There are general factors affecting the pharmaceutical industry. One is a political factor. The sector is affected by constant interference by the sitting administrations forcing them to charge lower prices thus affecting their profit margins. Further still, economic factors as the strengthening of the dollar are affecting U.S firms making their medicine expensive and subsequently leading to lower demand. Moreover, technological advancement affects the pharmaceutical sector on how they currently do their advertisements.
Delegate your assignment to our experts and they will do the rest.
There are two identifiable strategic groups in the pharmaceutical industry. One is the proprietary group, which chooses a strategy of positioning itself through discovering and development of new drugs. On the other hand, the generic strategic group concentrates on low-cost manufacturing and distribution of drugs. However, the group is unable to charge higher prices for their commodities. Competitive dynamics in the pharmaceutical industry includes pricing and market segmentation.
The key drivers to change in the Pharmaceutical industry involve policy-driven changes and the growing implication of generic competition (Tso & Jacob,2012). This development has consequently led to cost-effective production strategies and diversification to improve the market presence of these firms. Pharmaceutical is a multi-billion industry that attracts new entrants because of the probability of continual revenue generation because of a promising medicine (Anderson,2014).
Reference
Cognizant Reports. (2011,October). The Future of Pharma: A U.S. Sector Review. Retrieved from https://www.cognizant.com/InsightsWhitepapers/The-Future-of-Pharma-A-US-Sector-Review.pdf
Anderson, R .(2014,November 6). Pharmaceutical industry gets high on fat profits. Retrieved from http://www.bbc.com/news/business-28212223
Tso,C. , & Jacob,J.(2012). Tso, C., & Jacob, J. (2012). Consolidation and Differentiation: Key Drivers of Change in the Global Pharmaceutical Manufacturing Industry. Pharma Deals Review , 2012 (6).
