Drawing on the five forces model, explain why the pharmaceutical industry has historically…

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Case Discussion Questions 1. Drawing on the five forces model, explain why the pharmaceutical industry has historically been a very profitable industry. 2. After 2002, the profitability of the industry, measured by ROIC, started to decline. Why do you think this occurred? 3. What are the prospects for the industry in the future? What are the opportunities? What are the threats? What must pharmaceutical firms do to exploit the opportunities and counter the threats?

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