Porter Five Model of Industry Analysis

二 Porter Five Model of Industry Analysis:

-Barriers to Entry: So far, most companies develop their R&D in the way of cooperating with big universities like Melbourne University, Monash University and UNSW. Others rely on some big international reputational Pharmaceutical and Bio-tech companies using their lab and global resource. Put it into another way, it is expensive to attain the R&D facilities and specific skills. So we think it is difficult for normal firms to enter into this market.

-Customer Power: No negotiation on price due to the leading advantage on specific techs for customers' needs. So the customer power is weak.

-Supplier Power: As we mentioned above, the industry chain is well integrated as whole. The suppliers are those universities and big companies while they also lead the research and development. So no effect is on this part.

-Threats of Substitutes: Any new invention could be easily substituted by another company. It is a cruel problem to all bio-tech firms. You can ask a high bid on your new product but you will lose your position after another one. So we conclude that the threats are high.

-Rivalry Conduct: this always raise highly concerned by each company. A rapid change in techs results a highly competitive situation. Put a eye on those rivalry motions is necessary and even to impersonate their some of process partly.

三 Market Quick Look:

1. Under the Australia Government released Pharmaceutical Industry Investment Program(PIIP), heaps of international reputable pharmaceutical and bio-tech set their branch in Australia due to fund support.

2. Commonwealth Scientific and Industrial Research Organization, CSIRO and Cooperative Research Centers, CRCs invest a lot in supporting the R&D officially.

3. The outstanding outsourcing of bio-tech companies，Universities act the important role.

The distribution of different