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Michael Porters 5 Forces AnalysisCement and Pharmaceutical
Industry
Group -1
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PERIOD OF TOTCON
Govt set out prodas distribu
Industry concentpart of t
Lack of incentivedue to uniform
PERIOD OGOVERDECO
66.4% - goremaining t
Ceiling pric
PERIOD GOVERNME
CON
Price and distrem
Industrial licennew c
Cement expogove
ment Industry in India A short brief
First cement plant inPorbandar in 1914
315-320
million
Total installedca acit
Demand 2011-12: 225 MT
Demand 2016-17: 334 MT
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Porters 5 forces analysis
BARRIERS TOENTRY
Presence of manyfragmented
players
Lower pricingflexibility
2 players holdapprox 35% mkt
share
THREAT OFNEW
ENTRANTS
High capital costs
Long gestationperiod
Raw materialavailability
BARGAININGPOWER OFSUPPLIERS
Coal andlimestone
controlled bygovernment
Delay in licensesis a deterrent
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1970
olOrder(DPCO),
eRegulationGovernment
Regulations
oductpatentsinrekindledMNCs'mesticmarket
osts
ngrights(EMRs)MNCGrowth inPharmaIndustry
hestnumberofcilitiesapproved
bbreviatedNew s(ANDA)USFDA,belongedies
Growth ofIndian
PharmaSector
armaceutical Industry..A short briefPre
PatentEra(before 2005)
PostPatent
Era(post2005)
Emphasison Process
patents
Emphasison Product
patents
19541961
US$7000million
Size of theindustry
Encouraged new drug
discoveriesover the
long-term
US$32
billion
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BARRIERS TO
ENTRY
Drug discoveryprocess is
hindered by adearth of qualified
molecularbiologists
Lack of funding;
Govt policysupportive
Highly fragmentedindustry
THREAT OFNEW
ENTRANTS
Drug Productioncycle: 12 years
Low entry barrieras Fixed cost
requirement Is low
BARGAININGPOWER OFSUPPLIERS
Pharmacompanies have
considerable yieldin Ethical Market
Protectied byPatents
Porters 5 forces analysis
