Porters Five Forces

Porter’s Five Forces

The threat of substitutes in the healthcare industry is always present and therefore their profits are greatly affected.  On the pharmaceutical side of health care, the patents are a major key to a company’s profits. When the company’s patent expires, this permits any pharmaceutical to make their version of the drug, thus reducing profits of the company that once had the patent. Johnson and Johnson is a company that is hurt by these threats of substitutes.  They are hurt due to the fact do not have the ability to raise their prices, because their customer can easily purchase a different product of similar value. This in turn lowers their profits. The threat of substitutes in the healthcare industry is always present and therefore their profits are greatly affected.  On the pharmaceutical side of health care, the patents are a major key to a company’s profits. When the company’s patent expires, this permits any pharmaceutical to make their version of the drug, thus reducing profits of the company that once had the patent. Johnson and Johnson is a company that is hurt by these threats of substitutes.  They are hurt due to the fact do not have the ability to raise their prices, because their customer can easily purchase a different product of similar value. This in turn lowers their profits. The threat of substitutes in the healthcare industry is always present and therefore their profits are greatly affected.  On the pharmaceutical side of health care, the patents are a major key to a company’s profits. When the company’s patent expires, this permits any pharmaceutical to make their version of the drug, thus reducing profits of the company that once had the patent. Johnson and Johnson is a company that is hurt by these threats of substitutes.  They are hurt due to the fact do not have the ability to raise their prices, because their customer can easily purchase a different product of similar value. This in turn lowers their profits....