Using an industry with which you are familiar, apply each element of Porter’s Fi

Question

Using an industry with which you are familiar, apply each element of Porter’s Five Forces model to the industry by briefly explaining how each element affects the industry.

1) The threat of New Entrants - 2) Power of Suppliers- 3) The power of Buyers - 4) The Threat of substitutes - 5) Rivalry among existing competitors

Selecting one company from within that industry, select 2-3 of the 8 general environment trends, that are having or could have the most impact on the company. Justify your selection of trends using sources.

1) Complementary products or services;

2) Technological change ;

3) General economic conditions;

4) Population demographics;

5) Ecological/ natural environment;

6) Global competitive forces;

7) Political, legal, and regulatory forces;

8) Social/cultural forces.

Explanation / Answer

INDUSTRY COMPETITION:-

BARGAINING POWER OF BUYERS:-

BARGAINING POWER OF SUPPLIERS:-

BARRIERS TO ENTRY:-

THREAT OF SUBSTITUTES:

I have selected Cadila Healthcare Pvt Ltd in the Indian Pharma Industry for my analysis. CHPL is a major manufacturer of Calcium drugs in India. The macro environment and its impact on CHPL's product is as under-

3) General Economic Condition: India is a growing country with economy on the rise. The per capita income of the population is less than developed nations and thus less purchasing power is in the hands of the consumers. Thus generic drugs is in more demand which replicate the chief molecule of the patented drugs. These generic medicine manufactured by CHPL are affordable and thus demanded by masses.

4) Population Demographics:- Indian population is growing population with 60% of youngsters who need calcium for their developments. Thus CHPL manufactures all forms of Calcium drugs from kids till senior citizens to cater to their various metabolic requirements.

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