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The Pharmaceutical Industry
The worldwide pharmaceutical industry is highly profitable (see Table One and Table Two below). Using a five forces analysis assess how this high level of profitability is achieved in the UK ethical (or prescription) pharmaceutical industry. Identify the influence of any key macro factors.
Consider the UK firm GlaxoSmithKline (GSK) and present a structured assessment of the resources and competences of the firm that contribute to achieving a leading position within the industry.
Table One: World’s largest pharmaceutical firms, 2013
Total revenue ($bn) R&D spend ($bn)
Sales and marketing
Profit ($bn) Profit margin (%)
Johnson & Johnson (US)
Hoffmann-La Roche (Swiss)
Eli Lilly (US)
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