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The pharmaceutical industry is characterized by a high level of concentration with fifteen multinational companies dominating the industry. Major players in this industry are Pfizer, Glaxosmithkline, Merck & Co, etc.
Industry Analysis Based On Porters Five Forces
Supplier Power: Supplier power in this industry is minuscule. Raw materials for the medicine ( chemicals) are readily available. The cost of raw materials is a relatively small fraction of the cost of the end product. One area where supply might be a constraint is the scarcity of donor organs for the purpose of R&D
Buyer Power: Buyer's include customers, doctors, and hospitals...
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