Environmental Scan and Environmental Threats and Opportunities Profile for the Pharmaceutical Industry and Sanofi
Mentor:V. Seshan , Professor of Business Policy, Strategy, and Ethics , Pepperdine University
To gain a better understanding of where the Pharmaceutical industry currently is and where it is headed one must utilize innovative methodologies. Traditional analysis methods such as an Environmental Scan (ESCAN), and Environmental Threat and Opportunity Profile (ETOP) help to aggregate various external market factors that are necessary to create strategy plans, and eventually strategy implementation. Traditional ESCAN and ETOP analysis may overlook other important market factors. For this reason the following analysis utilizes Professor. V. Seshan’s 9-dimensional TIPSEEECS model. External market factors included in this model are Technology, International, Politics, Social Trends and Demographics, Ecology, Energy, Economics, Competition, and Spirit of Intentions. Depending on the industry subject to analysis, different factors will carry different degrees of importance. For the Pharmaceutical both Competitive factors and Political factors rank high as threats in the the ETOP analysis. Competition is particularly threatening because of the many large players in the Pharmaceutical Industry, and the threat of generic intrusion and counterfeits in the market. An additional threat is that of regulatory restrictions in the Political category. The top opportunities for the industry are in the International, Social, and Technological categories. Supporting this is the gorwth of Emerging Markets, growth of the 65+ age group globally, and the new opportunity for innovative solutions from R&D in the Biotech sector of the Pharmaceutical industry.