Name: Hasin Israkh Shovon ID: 191011066

Answer to the question No: l

Competitive forces can be analyzed using Porter's five forces model. This model helps determine
how strong or weak the competitive forces within the industry are. As the name suggests, the
model consists of five elements of his, which relate to the pharmaceutical industry to give a clear
picture of the current competitive scenario in the industry.

• Threat of new entrants – The pharmaceutical industry is a very capital intensive sector and
starting a new business requires licensing, compliance and numerous regulatory approvals. Most
importantly, customers who have been taking a particular brand of medicine for a long time, or
who have been prescribed a brand name medicine by their doctor, usually do not want to change
brand of medicine until they need to. is. All of these pose significant barriers to entry into the
industry, making the threat of new entrants to the pharmaceutical sector very low.

• Bargaining power of suppliers – Currently, he 99.5% of raw materials in this industry are
imported from China and India. There are ways to import raw materials from other countries,
such as Europe, but this makes the raw materials more expensive and ultimately increases the
price. Therefore, switching providers in this space is very expensive and the bargaining power of
providers is high. However, Bangladesh is preparing factories to supply raw materials to the
pharmaceutical industry. This could reduce our reliance on imported raw materials and reduce
the bargaining power of our suppliers in the future. • Competition among Competitors - The
industry has a small number of players, with 20 companies holding a majority share of the
market. Most companies use the same drug under their own brand name and compete for market
share from others. So the competition between competing companies is great.

• Risk of Substitution – In the pharmaceutical industry, multiple companies may be making the
same drug and customers may not be able to find a branded drug, or the price of a branded drug
may be lower than the price they can easily compare with others. is also high, so the risk of
substitute products is very high. Other brands switch.

• Bargaining power of buyers – Bargaining power risk is very low here. Companies are free to
price their medicines as long as they are not life-saving. Prices for essential medicines are
usually set by the government and no company charges more. Therefore, the customer's
bargaining potential is very small.

Answer to the question No: 2

Square Pharma has a market share of 17.2% and generates a staggering $33.7 billion in revenue,
according to the most recent 2018 statistics of Bangladesh's top 10 pharmaceutical companies.
 He is followed by Incepta Pharma, which has an 11.1% market share and annual revenue of
$22.7 billion, and Beximco. Renata comes in fourth place with 5.2% of the market and $16.94
billion in annual sales. Healthcare has roughly the same market share as Renata, which is fifth
with annual revenue of $10.6 billion, Opsonin, which is sixth with annual revenue of $10.42
billion, ACI, which is seventh with 4.38%, Eskayef, which is seventh with 4.3 %, Aristopharma,
which is eighth with 4.1%, and Acme 3.5%. The pharmaceutical industry in Bangladesh is highly
concentrated and dominated by large corporations. The nine corporations named above control
over 70% of the market, with the remaining 30% being split among all other currently operating
businesses. Since the last 32 years, Square Pharma has led the market, and this trend is still going
strong. However, all businesses in 2018 had negative revenue growth, with the exception of
Opsonin and Acme, as a result of greater competition.

A strategic group mapping is shown below that shows price and service comparing to market
share.

Higher
Square

Price and Service Beximco

Incepta
Health
Reneta Aristo
Care

Lower

Lower Market Share Higher

Answer to the question No: 3

Pharmaceuticals are influenced by the following factors:

Increased GNI per capita causes industry growth. In the past ten years, Bangladesh's gross
national income has increased by 6%, as has its gross national income per capita. Amount
increased. As earnings grow, people will spend more on health care because they are wealthier
than ten years ago. Approximately 1.9 billion people live in Bangladesh, which is rapidly
urbanizing. There are drawbacks that come along with Bangladesh's congested, heavily
populated nature, but it is a good place for businesses to operate. Due to the rapid growth of the
population, medications are in ever-increasing demand. Generic drugs are in great demand in
Bangladesh, as its GDP has grown by 7% in the past year. A result of this has been an increase in
the demand for pharmaceuticals. In order to expand their business, Bangladeshi pharmaceutical
companies are adopting cutting-edge technologies. As a result of increasing public health
awareness and lifestyle changes, Bangladeshis are now adopting healthier lifestyles compared
with a few years ago. It is possible that this development could have a negative impact on the
pharmaceutical industry, increasing demand for particular medications. An increase in life
expectancy has resulted in a large demographic shift. A growth of 66.4 years in birth expectancy
in 2002 to 72.81 years in 2017 was recorded. There will be an increase in demand for
medications in the long run due to people living longer. The number of countries that Bangladesh
exports medications to has increased; Bangladesh now exports medications to 147 countries.
Pharmaceutical exports are one of the main drivers of the industry.

Answer to the question No: 4

Future competition success will depend on a number of variables, including:

The import dependence that exists between exports and imports of raw materials for the
pharmaceutical industry has an impact on both. We might be able to stabilize prices and improve
our price competitiveness with other nations if we can develop factories that independently
source raw materials, reducing our reliance on imports of those materials. Exports will become
more robust and consistent as a result.

High market fragmentation due to more untapped investments - Many foreign pharmaceutical
firms are interested in establishing production facilities in Bangladesh. Due to this, competition
among existing businesses and newcomers will intensify. The local manufacturer will still be
required to uphold quality standards and maintain pricing control even though the new firm will
produce the same medicine that it already does. The likelihood that local firms will be more
successful in exporting increases due to their competitiveness.

Reduced advertising expenses result in reduced pricing Advertising is one of the biggest
expenses in this sector. SMEs with limited financial resources are unable to compete with large
corporations. Because of this, many small businesses might not last for a very long time, giving
big pharms more room to maintain a larger market share.

Answer to the question No: 5

There are two activities in a value chain. both primary and auxiliary tasks. The pharmaceutical
industry's value chain is made up of many parts. Several of the value chain elements for the
pharmaceutical sector are listed below:

1. Promotion

2. Transforming API into final products (Manufacturing)

3. Bringing in API (Raw materials).

4. Hiring personnel.

5. Improving factory facilities by adding additional machinery.

6. Selling the medications to both domestic and international markets.

7. Adopting contemporary facilities and improving technological aspects.

Inbound Marketing & Outbound

Operations Service
Inventory Sales Inventory
3 2 1 6

Administrative activities and management

Human resource management 4
Technology development 7
Procurement 5