Industry Analysis & Industry Trends
Demand for pharmaceuticals will continue to increase as they become more affordable to more people because of healthcare reform and the aging baby-boomer generation. However, cost cutting implemented by the government will likely shrink profit margins. Despite potentially small profit margins, competition will remain strong among industry players and alternate retailers... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Pharmacies and Drug Stores industry is in the mature stage of its life cycle, and adapting to changing trends in the industry is crucial to survival. Industry sales growth is slowing, rivalry among companies is high, weaker players are going out of business or being acquired, and the remaining players are growing through consolidation.
The industry's value added (IVA), which measures the industry's contribution to GDP, is forecast to grow at an estimated average annual rate of 2.6% during the 10 years to 2018. This growth is higher than the average annual 2.1% growth of US GDP during the same period. However, relative to the overall economy, pharmacies and drug stores are not generating enough revenue growth to attract new industry players... purchase to read more