You are on page 1of 10




Name Yu Ting Cheng
NetID yche627
Group Number: 243
Website Link:
Tutorial Details
Tutor: Day: Time:
Kit Wah Huang Wednesday 1pm
Time Spent on
22 hours Word Count:
1515 total words.
1716 (including
title and


Either being accidental or intentional, drug overdose affects a large amount of people in world, especially
since a large amout of people use the medicianal pills for beneficial reasons, and the amount of people
that use this incorrectly is steadily increasing. There are some people who may have little knowledge that
some types of pills are harder to handle than others, and this lack of knowledge is what causes sickness
and sometimes death. To solve this, an automatic pill dispenser has been introduced. This, simply put,
prevents excess pills to be taken by the user, while providing the correct times to take the pills in case the
user forgets to. This will arguably lead to a more efficient consuming of medicinal pills and hopefully
benefit the public in terms of health, as it may lower the sickness and death rates.
3.1 Vision
Decreasing mortality rates while maintaining the standards of importance for health in the community and
throughout the world.
3.2 Industry Analysis: Pharmaceuticals
Industry: Pharmaceuticals. Industry of medicinal pills, drugs and pharmacies.
Force: High/Low: Justification:
Buyer power: High There are a large number of pharmacies in this particular
industry, and since there is a lot, the options for selecting a
particular pharmacy isnt limited to the types of medicine that is
sold at a specific pharmacy.
Supplier power: Low
The supplier power is low, because they have no way to negotiate
the dominance between the two parties, as they have different
target markets. The pharmacies also have little option when it
comes to the supplement of the pills.


Threat of new entrants: Low Threat of new entrants are low, meaning that there are high entry
barriers. This is due to the amount of money needed to research
and develop the drugs (such as R&D).
Threat of substitutes: High The threat of substitute products are high because there are
generic drugs that come a far cheaper price, and those have
increased compared to the past. Generic drugs cant afford high
amount of money for their drugs but this allows them to sell their
drugs for cheaper.
Rivalry among existing
High There is a high working capital and competition between existing
companies, and the top five companies in the industry account
for only 18% of market share.
Overall attractiveness of the industry: The overall attractiveness of the industry is quite attractive, as this
particular industry, the barriers to new entry are very low, meaning that the threat of new entrants isnt
significant. The strength of the industry, such as making profit would steadily increase due to the
increasing number of people that resort to needing goods from this industry.
3.3 Customers and Thei r Needs
The target customers for this particular industry are mostly the general public, but more specifically the
people that are in need of such services such as medicinal services and products to help or increase their
help. This is because they need this service to be reliable, easy to access, and also quick, in case of
emergencies etc.
The need for this service is growing, because of the many things that require the balancing of the health of
people, and because of that, the demand for this industry is rising as well, but the size of the industry is
balancing out this gain.
3.4 The Product and Service
This product aims to eliminate the need for scheduling and reminders of taking medicinal pills, as this
automatic pill dispensing machine makes the process much easier and efficient. This aims to not only
prevent unnecessary intake of pills, but also to serve as a reminder so that the right amount of medicine is


consumed, not too much or not too little. It fulfils the customers needs as it makes the process easier to
understand, and is overall much safer to the people who have lack of knowledge, or a fear of taking such
products. It also makes the entire process safer too, as the risk of taking the pills are no longer in effect,
meaning that the people who use this would not be as reluctant to do so if not for the product.
3.5 Suppliers and Partners
The sales for the pharmaceutical industry heavily concentrates on a large number of suppliers to supply its
products into their industry, which therefore has decreased the ability to exert influence from the suppliers
to the industry.
Therefore, this means that the bargaining power of suppliers is low, as they have no way to negotiate the
dominance between the two parties, as they have different target markets. This statement is also true for
the partners of the pharmaceutical industry, as their partners are usually the ones to provide them with
the products and the services that are needed.
3.6 Strategy: Cost Leadership Strategy
Because the pharmaceutical industry is relatively unique: meaning that there arent many other industry
that provide the same or similar services and products; the industry tries to target a wide/broad range of
people, but this is true especially since the demand and need for pharmacies will always be high.
Therefore, it is safer to implement the cost leadership strategy, as this particular industry is aiming for a
lower cost (easier to purchase and purchases are capped because of prices) and a wide/broad range of
people, because this industry targets most of the world, as it is a vital part of life and is not trying to be
unique in its own way due to the nature of the industry.
The overall strategy is therefore Cost Leadership strategy
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is: Procurement
Despite the pharmaceutical implementing some of the value chain, the most important activity for the
industry is in fact the Procurement, which have to do with the product supplier management, funding,
subcontracting, specification etc., which means that the pharmaceutical company has to focus on where it
would get its resources, products and services supplied from, meaning that the supplier has to be a
legitimate source. This is important as if the products that were offered by the pharmaceutical were not to


be up to standards, it could potentially affect their business. The specification of the industry within the
value chain activity is also vital, as their products need to be exactly the same as the ones that were
requested, meaning that a small difference in their products could affect a particular company in the
industry negatively.
3.8 Business Processes
3.8.1. MANUFACTURING OF OVERDOSE MACHINE The process of the manufacturing the machine is
important to the organisation, as it is the process that starts the entirety of the business, and the one that
would help not only the organisation grow, but also the industry also.



Creation of pills
Obtaining of
raw materials
Development of



3.8.2. IMPLEMENTING OVERDOSE MACHINE PROCESS - The implementation of this system is quite straight
forward. This is important to the organisation as this process is the key process in the business, and is one
that this product is based upon.

Check if
has taken
Medical paper
Yes No
Approve dosage
and give pills



3.9 Functionalities
Functionality of recording the customers information and their details.
Functionality of approving the customers needs for the pills and medicinal products.
Functionality of recording raw materials that have been supplied.
Functionality of recording the amount of products have been created.
3.10 Systems

3.10. 1. CUSTOMER TRACKING SYSTEM The system used to record down the customers information and
details, so that it can be easily accessed from the system once required. It links in with the functionality as
it is able to record a large number of customer details into a database, which then can be edited, sorted,
and modified at any time if needed.
3.10. 2. CUSTOMER RECORDS PROCESSING SYSTEM This system processes the customers details and using
the information providing, and returns the relevant information required for that specific customer. This
allows the product to be able to make decisions on whether or not pills need to be dispensed or not, which
is important for the functionality because it is the decision that makes the system important.
3.10. 3. SUPPLIED MATERI ALS RECORDING SYSTEM- This system checks not only the quality but the quantity
of the supplied materials, as this is an important part of the manufacturing process of the organisation, and
therefore allows the organisation to record supplied materials.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

1. Implementing
overdose machine
1. Functionality of recording the customers
information and their details.

2. Functionality of approving the customers
needs for the pills and medicinal products.

Customer tracking systems

Customer records
processing system
Customer relationship
management system
2. Manufacturing of
overdose machine
1. Functionality of recording raw materials
that have been supplied.

2. Functionality of recording the amount of
products have been created.

Supplied materials
recording system

Amount of products
created tracking system
Transaction processing


The Accidental Drug Overdose System in conjunction with information systems, would make
a huge benefit to not only the people who regular require the consuming of medicine, but
also for the general public as well, and it does this by being clever as well as safe also,
meaning that people can begin using this system knowing that it saves the lives of people,
throughout the entire world.

1. Pradeep Pandey, Porters Five Force Model in Pharma Industires. (November 5

2009). Retrieved from

2. Maria Gabriela Marin, (March 25
2008). Student's view on strategic management:
Porter's Five Forces Analysis for the Pharmaceutical Industry. Place of publication:
New Zealand. URL:

3. All About Counseling. [Online], (1998) Available:
(June 30, 2010). Retreived from

4. Antonia Froutzis, (2012), Stats about international overdose, Retrieved from:

5. When the times were a-changing: How the pharmaceutical world is evolving
(February 15
2014), Retreived from: