Porters framework is a powerful tool to understand an individual companys ROIC based on its choice of strategy and to understand its competitive advantages: threat of new entry, bargaining power of buyers, bargaining power of suppliers, the degree of rivalry among existing competitors and the threat of substitutes. According to the empirical evidence presented by KGW, Pharmaceuticals and Biotech companies consistently outperformed Consumer Goods in terms of ROIC. The outperformance underlines the importance of industry competitive structure to ROIC. Apply the Porters analysis framework and explain TWO reasons of such persistent relative performance of these two industries. (8 marks)