Many new companies to enter the market without burden of costly tasks such as research and development, clinical trials and manufacturing of drugs. The new business technique includes contract research (drug discovery and clinical trials), contract manufacturing and co-marketing alliance. But now many pharmaceutical companies are progressing in the market by shifting from traditional business approach to emerging new business approach. This is why the threat of a new entrant is low to moderate to existing companies. With more drugs going off - patent, growth opportunities for the industry are expected to increase dramatically as generic …show more content… A company needs to go through extensive regulatory approval, licensing, high financial backing and investment, an effective distribution network, brand patents and strong brand presence make it a difficult industry to enter or exit. Due to increasing demand of high-quality drugs, low-to-moderate entry barrier to the new entrant, the presence of a number of large and small firm this market is highly competitive. "Ĝompetitive rivalry: The pharmaceutical industry is highly fragmented with almost 3,000 pharma companies and 10,500 manufacturing units. It looks into five factors namely, competitive rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of customers. PORTERS FIVE FORCES ANALYSIS - PHARMA INDUSTRY Using Porter's Five Forces we can analyse the scope of the pharmaceutical industry.
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