Major Driving Forces for Indian SME Pharmaceutical Industry

The study examined the major driving forces, that affect the operational efficiency of the Indian pharmaceutical industry, with special reference to the SME pharmaceutical companies in India. Porter’s Five Force Model was used as a frame of reference, to gauge the effect of various environmental and regulatory forces, that affect the working of Indian SME pharmaceutical industry, using regression analysis, as the main tool. The reliability and the regression equation, derived from the Regression Analysis, showed that competitive rivalry, among existing firms, was the strongest force, followed by bargaining power of buyers, threat of new entrants, bargaining power of suppliers and the threat of substitute products, in that order. This study applied the Porter Model on Indian pharma industry, with special reference to the SME units. The industry would find this research to be of practical value, especially for SME industries, for devising their strategies for the growth and competition assessment.