203 Main Qs Pharmaceutical Industry Landscape market issues Identifi es key issues driving and transforming your market from Customer and Offer perspectives What are the crucial issues affecting the customer landscape? Which shifts are underway? Where is the market heading? • Skyrocketing healthcare costs • Emphasis shifting from treatment to prevention • Treatments, diagnostics, devices, and support services are converging • Emerging markets becoming more important market segments Identifi es the major market segments, describes their attractiveness, and seeks to spot new segments What are the most important Customer Segments? Where is the biggest growth potential? Which segments are declining? Which peripheral segments deserve attention? • Doctors and healthcare providers • Governments/regulators • Distributors • Patients • Strong potential in emerging markets • U.S. remains the predominant global market needs and demands Outlines market needs and analyzes how well they are served What do customers need? Where are the biggest unsatisfi ed customer needs? What do customers really want to get done? Where is demand increasing? Declining? • Strong, with dispersed need for niche treatments • Need to manage exploding cost of health care • Large, unsatisfi ed health care needs in emerging markets and developing countries • Consumers are better informed switching costs Describes elements related to customers switching business to competitors What binds customers to a company and its offer? What switching costs prevent customers from defecting to competitors? Is it easy for customers to fi nd and purchase similar offers? How important is brand? • Monopoly on patent-protected drugs • Low switching costs for patent-expired drugs replaceable by generic versions • Growing amount of quality information available online • Deals with governments, large-scale healthcare providers increase switching costs revenue attractiveness Identifi es elements related to revenue attractiveness and pricing power What are customers really willing to pay for? Where can the largest margins be achieved? Can customers easily fi nd and purchase cheaper products and services? • High margins on patent-protected drugs • Low margins on generic drugs • Healthcare providers, governments enjoy growing infl uence over prices • Patients continue to have little infl uence over prices what new key resources do we need to develop or acquire in light of the ongoing shift from treatment to prevention? how can our value proposition address the issue of exploding health costs? what would a greater focus on emerging markets mean for the other building blocks in our model? what kind of new revenue opportunities might be created by the shift in emphasis from treatment to prevention? how can we main- tain earnings while addressing the public struggle to cope with skyrocketing health- care costs? what does the conver- gence of treatment, diagnostics, devices, and support services mean for our key resources and activities? VP CR CH CS KP KA KR R$ C$ • Doctors and healthcare providers • Governments/regulators • Distributors • Patients • Strong potential in emerging markets • U.S. remains the predominant global market bmgen_final.indd 203 6/15/10 5:44 PM