Please read “Falling U.S. Generic Drug Prices Hurt Manufacturers, Wholesalers (Links to an external site.)” and discuss the questions below:
- After the generic drug makers make the drugs, what stages do the drugs go through before they are in the hands of the patients? (Hint: How does the industry value chain look like?)
- Studying the U.S. generic drug maker industry, who are the major competitors in the industry and who are the buyers of the industry?
- From a Five Forces analysis perspective, why is the profitability of the generic drug manufacturing industry pretty low? (Hint: What are the killer forces among the five forces ?)
- What can manufacturers of generic drugs do now? How can they change the industry once again to make it more profitable?
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5. In the music streaming industry, the top five players are Spotify (35% market share), Apple music (20% market share), Amazon (11% market share), Tencent (10% market share), and YouTube (5% market share). Please calculate the four firm concentration ratio and HHI based on the information and evaluate the competitiveness of the industry based on your calculation.