Business Article Strategic Report Example

Published: 2019-01-22
Business Article Strategic Report Example
Type of paper:  Essay
Categories:  Strategy Business Medicine Pharmacology
Pages: 4
Wordcount: 1018 words
9 min read

Business strategic concepts

The business will cover an article written about four companies that rapidly raised the prices of their drugs. It will describe several business strategic concepts. These strategic concepts may include; (Porter's Five Forces), Strengths, Weaknesses, Opportunities, Threats (SWOT), and Value, Rareness, Imitability, Organization (VRIO) among others. They will elaborate the major issues brought up within the article and in the business's strategies.

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The article how four drug companies rapidly raised prices on life-saving drugs' is an article featured in the Los Angeles Times article that gives information on four companies that have used several strategic concepts. In the article, the United States Senate Committee acquired a report providing information on companies exploiting the consumers by rendering ancient essential medicine and then raised their prices rapidly. The particular article has based most of it theories and functionalities on these specific organizations and companies correctly implementing a similar business strategy to make sure they realize their aims and objectives.

However, the different strategic concepts fall into usage in a variety of ways. Some concepts are used positively to ensure there is a development of the companies and also deliver the required services to the targeted group of people or every individual as a whole. Other concepts have been used negatively in that only the company gets its aims and advantages, and the dedicated group of people faces more disadvantages than the advantages they are supposed to attain (Grant, 2016).

A specialty medical facility or a pharmacy

In this article, the use of Porter's Five Forces strategic concept has gained implementation. Several occurrences of events are evident from the four companies. A threat of substitute goods, threat of new entrants, buyer power, bargaining power of suppliers, and competition within the industries are the major concepts evident in the four companies as used in the article.

Firstly, the companies implemented the use of a strategy to hinder the development or cropping up of substitute goods and also the threat of new entrants. In the business article, it gives information on how Turing tried and struggled to hinder and block other organizations from manufacturing and making of substitute drugs like the generic versions of Daraprim done by making sure that the distribution of the drugs was restricted. The drug's delivery is a specialty medical facility or a pharmacy. In addition to that Turing officials add that by using this strategy, it a way of ensuring that the drug remains of the same standards and no other substitute drug is made that would not function the same as the original drug. It as a business strategy that helps protect the quality of the drug (Grant, 2016).

The companies use Porter's Five Forces. We can see the implementation of the threat of new entrants strategy. These companies ensured that the distribution of the drugs is restricted to make sure that other societies do not acquire all the components used in the making of the drugs. Also, the companies ensured that their drug is used from quality and gave it a high price value with the assumption that it is a quality medicine (Patterson, & Rosenfelt, 2017). This strategy provided that new entrance of similar commodity in the market would be biased and people would not take the drug seriously.

The buyer power is Porter's Five Forces Strategy identified in the article. We can see the committee in the article give facts concerning the four companies' goods prices. The companies raised the prices in the name of funding research in the discovery of new drugs in the markets. However, the committee gives evidence of how the increased product prices is an attempt to boost profits for the investors and the executives. The use of this strategy is evident in the article as it gives more data on how the companies did not operate as the traditional pharmaceutical companies but as hedge funds. For example, we can see it giving evidence about a 62-year-old medicine used for treating a deadly parasitic disease whose price raised overnight (Patterson, & Rosenfelt, 2017).

The four companies' strategy of keeping out competitors is an example of Porter's Five Forces framework in trying to ensure the companies do not face stiff competition from other businesses. In the article, the research committee found out that Turing made an attempt to block other companies from assessing the medicine in an aim to make sure only one manufacturer makes the drug. With this effort, the companies wanted to block out other companies from acquiring the same drug thus there was no competition (Grant, 2016).

However, the use of PESTEL framework is evident from the article. According to the article, the price increase of the drugs in the four companies are threatening to the economic stability of several American households. It shows how a hopeless mother cannot raise enough money to treat her daughter of a disease that can lead to blindness and at the same time cause death. In the same framework of PESTEL, there is the use of political and legal influence. The strategic concept is evident as the committee realizes that the four companies are not the only ones using the same strategy to raise the prices rapidly. The senators called for a policy changes so as to stop the practices of exploitation to the people (Patterson, & Rosenfelt, 2017).

In conclusion, I think the companies practicing the use of these strategies of increasing prices should be regulated. In the article, the senators should successfully push forward this policy to improve the transparency of prices and also prevent the use of strategic concepts that negatively affect the economy and the people at large. Also, to the companies to maintain their profits and competitive advantage, they should give affordable prices and follow the strategic concepts fairly to the people and the investors.


Patterson, M. E., & Rosenfelt, D. J. (2017). Justifying high drug prices within the context of value: Biologics versus generics.

How four pharmaceutical companies rapidly raised prices on life-saving drugs Retrieved from

Grant, R. M. (2016). Contemporary strategy analysis: Text and Cases edition. John Wiley & Sons.

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