• The Global Pharmaceutical Industry: Swallowing a Bitter Pill

1. Identify the main environmental forces currently affecting the global pharmaceutical industry.

PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization.
- Political: Governments targeted this industry in their effort to avoid high healthcare costs. Strict regulations were established by them. Governments are very powerful and important purchasers of pharmaceutical products. Stringent government regulation and powerful purchaser pressures. Governments around the world focused on pharmaceuticals as a politically easy target in efforts to control rising healthcare expenditure. Inter-country pricing disparities.
- Economic: Some markets suffer constraint. Recession causes tax revenues to fall, market contraction. European free trade agreements.
- Social: Ageing population creates pressure on healthcare system. This is caused by the increment of the average life expectancy, among many other things. Also, expectations of consumers are higher. Ageing populations create pressure on healthcare systems. Epidemic or chronic diseases (e.g. obesity).
More expectations from the consumer. Payers choosing generic drugs for first-line treatment of common ailments.
- Technological: The new modern communication technology has affected this industry significantly. Internet and IT`s impact has been huge, as in so many industries. Impact of internet on traditional business models. Impact of genetic research on industry.
- Environmental: Pharmaceutical industry has to change, if it wants to respect the environment. Increasing standards and requirements for environmental protection are becoming