The biggest brand name pharmaceutical companies are
Pzier with 15.2% market share, Johnson& Johnson with 14.3% market share,
Merck and Co. Inc. with 12.8% market share, and Bristol- Myers Squibb with
11.8% market share. The overall industry revenue is $19.0 billion with an
estimated annual growth rate of 0.4% from the year 2012 to 2017. "Although
Brand Name Pharmaceuticals have proven resilient to the economic downturn, it
has become vulnerable to threats from generic drugs."(IBISWorld, 2012,
Industry at a glance).
One way that brand name pharmaceuticals can remain
in the good position that it acquired is through corporate social
responsibility, where " the
policies are being created voluntarily in order to secure a niche in a
global market place where product liability is a key factor in determining
success." (Global Pharmaceutical Industry [GPI], 2012). People feel more
comfortable purchasing drugs from a credible source and one way that companies
in the pharmaceutical industry can achieve said credibility is through
transparency with the customer through corporate social responsibility. This
will only help boost the image of the company so long as the medication is
within itself effective and reliable, which gives them a competitive advantage
over the generic pharmaceuticals.
Incidentally, the top three companies with the
largest percentage of market share have extensive corporate social
responsibility policies. Pzier has an integrity-based code of ethics that
“spans from everything regarding how to ethically conduct research to reducing
greenhouse gas emissions in a policy of corporate citizenship.” (GPI, 2012).
This not only creates a sense of purpose other than profits within the company
but can also be marketable to their customers, making them appear credible to
customers. Johnson & Johnson also have an integrity-based code of
ethics that include both their political and social stand against child labor
and outlines ethical research guidelines, also following in the environmental
trend have implemented a plan to reduce their impact on the environment. (GPI,
2012).
CSR can assist even the already established
pharmaceutical companies that they can gain market share and standing,
including increasing revenue should they adopt and implement a corporate social
responsibility policy reaffirming credibility to their customers and employees.
References
IBISWorld US. Industry Market Research- Brand
Name Pharmaceutical
Manufacturing. 2012. Retrieved from: http://clients1.ibisworld.com.proxyau.wrlc.org/reports/us/industry/ataglance.aspx?entid=487
The Global Pharmaceutical Industry. International
Trade and Contemporary
Trends.
2012.
Retrieved at: http://www.duke.edu/web/soc142/team2/social.html#corporate
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