Internal Analysis of J&J

Johnson & Johnson NAICS 325412a: imperfection ca-ca Pharmaceutical Manufacturing The scar Name Pharmaceutical Manufacturing manufacture consists of prescription and over-the-counter (henceforth known as OTC) pharmaceutical drugs for the purpose of preventing or treating illness (Snyder, 2). Nutritional supplements and kayo products argon not included in this intentness (Snyder, 2). The Brand Name Pharmaceutical Manufacturing industry is a mature industry characterized by a low growth rate of .9% (Snyder, 15), 2,707 players with jacket 6 players holding 70.4% of the market sh ar (Snyder, 4), lavishly ruler and complex governmental policy (Snyder, 4-5), threats from the Generic Pharmaceutical Manufacturing industry and patent expirations (Snyder, 5), and extremely high R&D costs that average $1.1 billion to bring a bran-new drug to market (Snyder, 9). Despite all of these characteristics, this industry continues to be one of the most profitable in the United States receivable high profit margins (19.3% in 2011) (Snyder, 15). I would characterize the Brand Name Pharmaceutical Manufacturing industry as moderately to super attractive due to high barriers to entry, low power of buyers, and high threat of substitutes. See Appendix A for an industry snapshot.

The intellect the Brand Name Pharmaceutical Manufacturing industry is not strictly highly attractive is due to the huge threat of substitutes in the form of generic pharmaceuticals and biosimilars. Brand Name Pharmaceuticals be protected in the United States by patents for a limited uttermost of time. After a patent expires, Generic Pharmaceutical Manufacturing companies are able to copy the formula and sell the pharmaceutical under its generic name, which usually is the name of the active pharmaceutical particle (henceforth known as API). APIs use small molecules that are easy to replicate. Starting in 2011 and peaking in 2015 there are a large number of patent expiries on cross name pharmaceuticals, known in the... If you want to get a full essay, order it on our website: Orderessay

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