Perform a five forces analysis on the following two industri

Perform a five forces analysis on the following two industries: The Pharmaceutical Industry and the textile industy

Solution

Five forces analysis on the pharmaceutical industry develop ,produce and marketed of drugs of pharmaceutical companies on how they are dealing with their products ,market competition and other opportunities etc .

These are the following Porter five forces .

1) Threats of new entry .

2) Rivalry among existing firms

3) Bargaining power of buyers

4) Bargaining power of suppliers

5) Competition from close substitute products

1) Threats of new entry -

A) High level of government rules and regulations

B) High entry barriers due to the high level of cost and heavy investment on new research and development .

2) Rivalry among the existing firms

A) High level of rivalry among the existing companies.

B) The degree of rivalry among the existing firms is a high competitive forces.

3) Bargaining power of buyers

A) As the medicine are very much in use and hospitals and other agencies are buying in bulk quantity so companies need to have regular monitoring on prices .

B) Bargaining power of buyers are the medium competitive forces .

4) Bargaining power of suppliers .

A) Bargaining power of suppliers are a low competitive forces .

5) Close of substitute products .

A) This one is a high competitive forces .

B) Demand for generic versus brand name drugs has increased because of the cost .

Porter forces analysis on the textile industry .

1) Threats of new entry - In this segment companies have strong presence and heavy investment .New comers need attractive marketing and investment plans.

2) Rivalry among the existing firms - Strong internal rivalry in this sector .In this sector consumer are looking for latest products and best value .

3) Bargaining power of buyers - If volume of buyer in large numbers then benefits will be much .

4) Bargaining power of suppliers - There are large number of suppliers available in this sector that give the advantage of negotiation.

5) Competition from substitute products - Companies have recognized brand and a customer base ,to achieve ,attract and retain customers ,new businesses would have to enter with a strong and attractive investment products.