Merck Co Inc. is one of the oldest pharmaceutical companies in the world. For more than a century, the company has been investing in vaccines and medicines against many diseases. Currently, the company is enjoying high-profit margins. The Porter's five-force model is a strategic management tool that helps identify the industry in which a company operates, in terms of attractiveness through profit potential (Dess, McNamara, Eisner, & Lee, 2019). Porter's five-force model will be used to determine the competitive environment of the healthcare industry in which Merck Co. Inc. operates in.
Threat of New Entrants (Low)
It is quite difficult for new entrants to achieve the economies of scale in the healthcare industry. This makes it easier for companies like Merck Co Inc. to produce large quantities of products
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