In1979, Michael Porter introduced the framework of five forces of competition, the framework named after him as Porter’s five forces of competition. In this overview you will get to know more about this framework and its application in pharmaceutical marketing.
The framework was first published in Harvard Business Review in 1979 in an article titled how competitive forces shape strategy. In 2008, another updated article the five competitive forces that shape strategy was published.
In his framework, Porter defined five forces that determine the competitive intensity and consequently the attractiveness of an industry. these forces are:
Think about the intensity as a continuum from low to high, the sum of forces may lie at any point between the two ends. If the forces are benign, the industry is attractive and highly profitable. If the forces are intense, the industry is not attractive, and profitability is low
The five forces could be applied to any product or any industry since the forces are always the same
In pharmaceutical marketing porters’ five forces analysis can be used to determine the attractiveness of specific market prior to launching a new product. It is a great tool to analyze competition as part of the product marketing plan's situational analysis section.