Usa Pharmaceutical Industry Competitive Advantage

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Executive Summary

A new wave of technology took over the United States of America following a major dispute with the Soviet Union (today known as the Cold War). The technological advancements that took place after such period have created a ripple effect strong enough to make the US the second largest economy globally (World Bank, 2016). This report gives an insight into the American economy, specifically looking into the existing opportunities present in its Pharmaceutical industry. The findings show the US’ strongest points – perfect coordination between its economic and political system to encourage commercial activity, the biggest and most productive service market in the world, and a proficient technological base for leading industries in the pharmaceutical or aerospace field.

The country’s fiscal and monetary policies are also examined, as well as the existing possibilities for FDI which make the United States the biggest destination for foreign investment worldwide.

The cluster analysed throughout this work is the pharmaceutical industry, where advantages such as favourable government regulation (in this case null regulation), extremely high funding towards Research & Development, inelastic demand and huge marketing and sales expenditure have made the US home to the biggest pharmaceutical market of present times. Market conditions are studied and market leaders are touched upon.

Further recommendations include a fusion between supported statistics and a personal opinion regarding what the next moves in the industry should bring – an eye on emerging companies and a redistribution of expenses thanks to the implementation of government pricing controls.

Table of Contents        

Introduction to the USA        2

Business Systems: Economic Performance of the USA        3

Overview of the Company – History, Present Position and Growth        

Economic Composition – Service, Manufacturing and Agriculture Sector        

Determinants of Competitiveness: Institutional Influences        

Drivers and Endowments – Technology Innovation, FDI, Reputation        

Macroeconomic Indicators – Monetary and Fiscal Policies        

American Pharmaceutical Cluster Analysis        

Overview of the Pharmaceutical Sector – History and Present Positions        

Performance and Competitiveness of the American Pharmaceutical Cluster        

Looking Forward        

Introduction to the USA

The United States of America is a country located in the middle portion of the North American continent. In terms of size, it occupies the third place globally behind its neighbour Canada and the worldwide leader, Russia. The United States of America operates as a federal republic, is ruled by common law and has a population of 324 million. Despite the sub-prime mortgage crisis of 2008 which had a notable economic impact on the country’s economic position, it has become the most powerful economy in terms of technology, and is amongst the lead nations in aerospace, military equipment, pharmaceuticals and computing (CIA).