Thermo Fisher Scientific

Thermo Fisher benefits from multiple reinforcing advantages.

Intangible assets and brand ecosystem: Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD are leading brands relied on in regulated and mission‑critical settings; Olink expands the platform into next‑gen proteomics with strong scientific credibility.

Score 90. Switching costs: validated workflows, reagent qualifications, instrument‑method lock‑in, training, software and service contracts create high migration barriers. CDMO and clinical services often involve multi‑year commitments and regulatory filings, further raising stickiness.

Score 92. Cost advantages: unmatched scale in procurement, manufacturing, distribution and field service, plus a sophisticated e‑commerce channel and stockroom model. The PPI Business System drives continuous productivity and quality.

Score 88. Efficient scale: in high‑end mass spectrometry, electron microscopy and sterile fill‑finish capacity, market concentration and know‑how limit viable entrants. Score 78. Network effects: modest direct user‑to‑user effects, though marketplace breadth and data workflows provide some indirect effects.

Score 40. Weighting switching costs 35 percent, cost 25 percent, intangible 25 percent, efficient scale 10 percent, network 5 percent yields a composite near 87. Key erosion risks are instrument innovation by peers (Danaher, Waters, Bruker), price transparency and procurement pressure in commoditized supplies, China localization, and potential regulatory changes for CDMO, all of which we monitor.