Industry Analysis & Industry Trends
Sustained increases in health expenditure, rising disposable income and an aging population have underpinned growth over the past five years. Revenue is projected expand during the next five years, with health expenditure and per capita disposable income continuing to rise. As a result, a greater number of companies are likely to enter the industry. However, competition from alternative retailers will remain a threat, despite this expansion... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate and include substantial capital requirements and access to skilled labour. Establishing a brand name also presents a barrier for some new entrants. These barriers largely reflect the moderate market concentration among pharmacy and drug store operators.
Potential companies must be able to competitively price products, which typically requires larger-scale facilities that allow them to achieve economies of scale. Given the homogeneity of many industry products, price is a key differentiating factor among operators. However, achieving economies of scale requires significant capital outlay.
At the same time, existing major players pose an additional barrier to entry for potential companies... purchase to read more