Group Members:

Zayan Mustafa (61476)

Syed Fakhir Hassan Zaidi (63576)
Affan Ahmed (63641)
Ehsan Malik (63616)

Assignment #01
Part 1:

IMPLEMENTATION OF PORTER’S FIVE FORCES MODEL

ON PHARMACEUTICAL INDUSTRY

One model for inspecting an industry and an organization's vital situation inside its
industry is Porter's Five Forces examination. The analysis looks at five competitive
forces that influence an industry: threat of new entrants, power of suppliers, power
of buyers, availability of substitutes, and competitive rivalry in the industry. Below
are the briefly defined points implemented and discussed as per our industrial
sector (Pharma)

 THREAT OF NEW ENTRANTS

The huge profits that exist in the pharmaceutical industry are constantly
creating new companies. A team of researchers with a warm idea or a newly
granted patent can find risky capital funds that want to provide millions of
dollars in start-up funding. These small companies do not pose a serious
threat to large drugs. In fact, one of the main exit strategies of a start-up
investor is to sell new products to a large firm when they are in the early
stages of development.

 POWER OF SUPPLIERS
 Providers have almost no force in pharmaceutical industry. The raw
materials for assembling drugs are item items in the synthetic business,
which are accessible from various sources. The greater part of the hardware
utilized in assembling and exploration is accessible from numerous makers.
Providers typically offer different items to the maker, which conservatives
estimating on more extraordinary materials and exceptional gear.

 POWER OF BUYERS

Pharma is special among ventures in light of the fact that the clinical patient
has an outright absence of intensity with respect to estimating. The
prescriber of the medications, the doctor, morally isn't permitted to benefit
from the offer of medications. The substance that pays for the medications,
the insurance agency, just has a state in the amount it will pay to the
wholesaler of the medications, which means it has little force with the
medication producers. The guarantor can decline to pay for medicines it
accepts are overrated.

 AVAILABILITY OF SUBSTITUTES

The impact of substitutes is reliant on the individual medication. Another

FDA-endorsed blockbuster drug that has patent insurance, treats a
significant wellbeing condition, and is first to advertise in quite a while
classification has a permit to print billions of dollars. The advancement of
another medication that fixes a significant ailment could be worth many
 billions of dollars for every year. Be that as it may, the 30th medication to
treat a typical condition could take a long time to recover the R&D costs.

When a medication loses its licenses, nonexclusive medication makers begin

selling copycat variants at generously lower costs. A medication that got
$100 million every year in benefit could become one that wins just $1
million per year in benefit for the time being. Moreover, there is a significant
global issue with fake medications. The best of these fakes copy a genuine
medication's equation and sell it at a lower value, which harms corporate
benefits. The most exceedingly awful fakes are made with poor quality
materials and can obliterate the notorieties of real items.

 COMPETITIVE RIVALRY

With more than $1 trillion in worldwide deals, the drug business can be
merciless. The immense significance of licensed innovation brings about
solid rivalry for elevated level laborers and driving specialists. Indeed, even
solid nondisclosure and non-contend provisos can't forestall the spilling of
serious data.

Any potential new medication has its public data investigated for the chance
of making a comparative medication to advertise as a substitute. The
business displays an example of firms combining and bigger firms
purchasing littler firms that have promising exploration or new medications.
Part 2:

In our opinion competitive rivalry is a force that poses more effect than the
other four forces when it comes to the pharmaceutical industry.