Perrigo Company

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1. What are the dynamics of the store-brand industry in context of Porter’s five forces model? The risk of entry by potential competitors in the store-brand industry is low. This constitutes a high barrier to entry. Incumbent companies try to discourage potential competitors from entering the industry, since the more companies enter the more difficult it is for established companies to hold their share of the market. The greater the costs that potential competitors must …

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…a major role in Perrigo’s future considering that they average approximately 25 new products a year. This includes the FDA approval to produce an OTC nicotine patch for use as a smoking cessation aid. With consumers now becoming more health aware and value conscious, the store-brand industry’s future also looks promising. The desire to be a leader in cost and quality will continue to drive the store-brand industry to reach new heights. ------------------------------------------------------------------------ **Bibliography**