Japan’s Biotechnology Industry - Porter’s Five Forces Strategy Analysis

The rapidly emerging biotechnology industry is a critical element of national power. Advances in biotechnology are resulting in novel biomedical and pharmaceutical products and processes that are relieving human suffering, improving health, and increasing the quality of life for the world’s citizens. Aruvian Research analyzes the Japanese Biotechnology Industry in the Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.