Abstract
The Pharmaceutical Industry is important both socially andeconomically; however, the market structure and conduct which distinguishes ithave brought it under the critical eye of both the regulatory authorities and thepublic. This thesis describes the market structure and conduct of the industrybeginning with an historical description of its development and the markettheories behind it. It is from these theories that a number of characteristics andbehavioural traits have been identified as contrary to the interests of society.As an oligopolistic multinational the pharmaceutical industry has beenidentified with high prices and profits, a lack of price competition and heavyproduct differentiation leading to high concentration ratios. Consumerexploitation is possible via these continuously high prices and the possibilities ofineffective, unsafe and poor quality pharmaceuticals. These outcomes emergefrom the distinct organisation of various aspects of the industry, viz. researchand development, promotional activities, pricing and profits, which areexamined. Concerns over possible consumer exploitation have led governmentsthroughout the world to impose increasingly stringent regulations on all of theseaspects. Such regulations have significantly changed the market structure andconduct of the industry world-wide.Having established the market structure of the industry the thesiscontinues with an in-depth look at brand loyalty. Analysis was conducted on thestrength of brand loyalty in the face of generic competition and the attitude ofdoctors to company promotional material. While brand loyalty continues tohave an impact on prescribing its strength appears to be diminishing.The market structure and conduct of the pharmaceutical industry isdynamic, with the present industrial climate increasingly competitive for allthose concerned. Nevertheless, while the future of the industry will be difficult,evidence of its previous flexibility and strength suggests it will adapt and willcontinue to be successful.
Type
Thesis,PhD Doctor of Philosophy
