UMT (UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

Market Analysis
Pharmaceutical Industry




Submitted by
Zain Mustafa




5/11/2014
Contents
Industrial Analysis .......................................................................................................................... 3
Political ........................................................................................................................................... 3
Economic Factors............................................................................................................................ 3
Technological Factor ...................................................................................................................... 3
Market Opportunities ..................................................................... Error! Bookmark not defined.
Potter Five Forces ........................................................................................................................... 4


Industrial Analysis
Pharmaceutical business can be described that intend to provide quality medicines to all clinical
segments. In Pakistan 316 pharmaceutical manufacturing companies are operating their business
among them are 30 multinational companies meeting more than 80 % of Pakistan Market. Still
there is a room to give cover to untapped clinical segments.
Political
There is no such barrier in the entry of pharmaceutical business in Pakistan. (Opportunity)
Economic Factors
Pharmaceutical market has grown in last 10 years, following are the key points related to the
growth of pharmaceutical business Pakistan.
According to USA, CIA world fact Book Pakistan population increased at the rate of 1.57%.
Pakistans Approx. 210 million in 2013. (Opportunity)
Pakistan per capita income increased from US$460.00 to US$3100.00 in 2013. (Opportunity)
Inflation is average consumer prices increased from 4.04% to 13.5% in 2013. (Threat)
Pakistan possesses 6 beds for 1000 patients. (Opportunity)
Social Factor
Pharmaceutical industry offers a huge opportunity for existing and potential investors. Market is
growing for many reasons some of them are given below
a. Almost 72 million people are taking medicine every day in Pakistan. (Opportunity)
b. 47% children are affected due to lack of nutrition and poor sanitation. (Opportunity)
c. 24.7% population of Pakistan living under poverty level which could not take balance
diet and quality sanitation. (Opportunity)
d. 27% patient die every year due to lack of affordability of medicines for their treatment.
(Opportunity)
e. 54% population of Pakistan is uneducated which do not aware of health rules for healthy
life. (Opportunity)
Technological Factor
Pharmaceutical industries has changed its trends very quickly in last decade some of them are
given below
a. Pharmaceutical industries established research and development labs for new generics to
fight against disease.(Opportunity)
b. Pharmaceutical industries up-dated their quality labs and production facilities according
to the international quality standards, GMP and health Norms. (Threat)
c. This industry not only provided its quality production Pakistan market but exported in
central Asian states and African continent and earned foreign exchange for the country.
(Opportunity)
d. Physicians are more educated to prescribe quality medicines for patients. (Opportunity)
e. Now even general public got aware of quality leading brands of the pharmaceutical
companies which has created positive image among end-users. (Threat)
f. Now there is healthy competitors among pharmaceutical companies to make their brand
as leading brand in the clinical market. (Threat)
Potter Five Forces
Threat of a new entrant (HIGH)
o There is a huge opportunity in this business anyone can manage a pharmaceutical
company.
Bargaining power of supplier (LOW)
o As there are many suppliers in the foreign countries which are will to sell their
products not only in their country other countries as well so the bargaining power
can be considered as low. (Opportunity)
Bargaining power of Buyer (HIGH)
o The products we have selected were already in the market with many names and
companies are manufacturing them so the bargaining power of the consumer
should be high. (Threat)
Industrial rivalry (HIGH)
o There is a huge race in this industry people gets confuse about the product names.
Threat of a substitute (HIGH)
o Demand for generic versus brand name drugs has increased because of the costs.
Generic drug companies do not have the high costs associated with the research &
development of new drugs and that allows them to sell at cheaper prices. The
closeness of substitute products is a HIGH competitive force