Perform an analysis ( five forces model) of the profit potential on the following industries:

The Pharmaceutical Industry

The pharmaceutical industry consists of firms that develop, patent, and distribute drugs. Although this industry does not have significant production economies, it does have important economies in research and development. Product differentiation exists as well, because firms often sell branded products. Firms compete in research and development. However, once a product is developed and patented, competition is significantly reduced. Recently, the increased availability of generic, non-branded drugs has threatened the profitability of some drug lines. Once an effective drug is developed, few, if any, alternatives to that drug are available. Drugs are manufactured from commodity chemicals that are available from numerous suppliers. Major customers include doctors and patients. Recently, increased costs have led the federal government and insurance companies to pressure drug companies to reduce their prices.

Using Industry Analysis: 5 Forces Worksheet

	Key Threats of Entry List the types (or categories) ofPossible New Entrants. Then, below the list,indicate a the factors that you feel influence the likelihood that a firm will enter.
Supplier Power List the types/categories ofSuppliers - what are the key inputs that firms must rely on? Do they have power to industry profitability?	Rivalry List theRivalsin the industry. Indicate the factors that influence profitability.	Buyer Power List the types (or categories) ofbuyersin the industry. Indicate the factors that you feel drive the differences in willingness to pay.
	Threat of Substitutes List the types/categories ofSubstitutesfor the industry. What alternatives might buyers use? Indicate a few factors that you feel make some more comparable.

[High - Medium - Low - other (.........)]