From a Five Forces analysis perspective, why is the profitability of the generic drug manufacturing industry pretty low?
Please read “Falling U.S. Generic Drug Prices Hurt Manufacturers, Wholesalers (Links to an external site.)” and discuss the questions below:
- After the generic drug makers make the drugs, what stages do the drugs go through before they are in the hands of the patients? (Hint: How does the industry value chain look like?)
- Studying the U.S. generic drug maker industry, who are the major competitors in the industry and who are the buyers of the industry?
- From a Five Forces analysis perspective, why is the profitability of the generic drug manufacturing industry pretty low? (Hint: What are the killer forces among the five forces ?)
- What can manufacturers of generic drugs do now? How can they change the industry once again to make it more profitable?
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5. In the music streaming industry, the top five players are Spotify (35% market share), Apple music (20% market share), Amazon (11% market share), Tencent (10% market share), and YouTube (5% market share). Please calculate the four firm concentration ratio and HHI based on the information and evaluate the competitiveness of the industry based on your calculation.