205 Main Qs Pharmaceutical Industry Landscape competitors (incumbents) Identifi es incumbent competitors and their relative strengths Who are our competitors? Who are the dominant players in our particular sector? What are their competitive advantages or disadvantages? Describe their main offers. Which Customer Segments are they focusing on? What is their Cost Structure? How much infl uence do they exert on our Customer Segments, Revenue Streams, and margins? • Several large and medium size players compete in pharma • Most players are struggling with empty product pipelines and low R&D productivity • Growing trend toward consolidation through mergers and acquisitions • Major players acquire biotech, specialty drug developers to fi ll product pipeline • Several players starting to build on open innovation processes new entrants (insurgents) Identifi es new, insurgent players and determines whether they compete with a business model different from yours Who are the new entrants in your market? How are they different? What competitive advantages or disadvantages do they have? Which barriers must they overcome? What are their Value Propositions? Which Customer Segments are they focused on? What is their Cost Structure? To what extent do they infl uence your Customer Segments, Revenue Streams, and margins? • Little disruption of the pharmaceutical industry over the last decade • Main new entrants are generic drug companies, particularly from India substitute products and services Describes potential substitutes for your offers—including those from other markets and industries Which products or services could replace ours? How much do they cost compared to ours? How easy it is for customers to switch to these substitutes? What business model traditions do these substitute products stem from (e.g. high-speed trains versus airplanes, mobile phones versus cameras, Skype versus long-distance telephone companies)? • To a certain extent, prevention represents a substitution for treatment • Patent-expired drugs replaced by low-cost generics suppliers and other value chain actors Describes the key value chain incumbents in your market and spots new, emerging players Who are the key players in your industry value chain? To what extent does your business model depend on other players? Are peripheral players emerging? Which are most profi table? • Increasing use of research contractors • Biotech fi rms and specialty drug developers as important new product generators • Doctors and healthcare providers • Insurance companies • Bioinformatics providers growing in importance • Laboratories stakeholders Specifi es which actors may infl uence your organization and business model Which stakeholders might infl uence your business model? How infl uential are shareholders? Workers? The government? Lobbyists? • Shareholder pressure forces drug companies to focus on short term (quarterly) fi nancial results • Governments/regulators have a strong stake in the actions of pharmaceutical companies because of their pivotal role in healthcare services • Lobbyists, social enterprise groups and/or foundations, particularly those pursuing agendas such as low-cost treatments for developing countries • Scientists, who represent the core talent of the drug manufacturing industry for which parts of the industry value chain should key partnerships be built as opposed to develop- ing key resources and activities in-house? must the value proposition change to accommodate shifts in the industry (e.g. the growing importance of biotech fi rms)? which part of the pharma industry offers the greatest earnings potential? which of the key resources emerging among new actors in the value chain need to be developed in-house (e.g. bioinformatics)? is it necessary to acquire smaller fi rms to fi ll product pipelines? could suppliers such as research contractors turn into competitors? VP CR CH CS KP KA KR R$ C$ • Increasing use of research contractors • Biotech fi rms and specialty drug developers as important new product generators • Doctors and healthcare providers • Insurance companies • Bioinformatics providers growing in importance • Laboratories bmgen_final.indd 205 6/15/10 5:44 PM