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Research on Competitive Strategy of Pharmarceutical Enterprise in China

Author: LiJianQing
Tutor: HuangTaiKang
School: Shenyang Pharmaceutical University
Course: Pharmacy Administration
Keywords: pharmaceutical enterprise competitiveness strategy trust core concept
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Type: PhD thesis
Year: 2007
Downloads: 441
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Abstract


China’s pharmaceutical enterprises in recent years is facing a serious challenge, facing an unprecedented crisis of confidence. In such a situation, how to form the pharmaceutical enterprise competitiveness strategy? This is the thesis research theme. We applied theoretical research, case studies both inside and outside the pharmaceutical enterprises to analyze strategic operations, eventually reached formation mechanism of the pharmaceutical enterprise competitiveness strategy: firstly we must make trust implanted to the core concept; secondly we have trust as the core of strategic planning; thirdly we seek a strategic point of the action by SWOT strategic matrix ; finally we get trust to reach strategic action. In whole process, we should always pay attention to the three levels of integration of core concept, strategic decision, strategic action.Firstly, the paper reviewed competitiveness theory of the main theoretical basis in order to find the logical premise of competitive strategy mechanism. In this final part of this part presented a competitive mechanism for the formation of the strategic model.Secondly, we get a detailed study about strategic formative mechanism from a theoretical point of view of the competitiveness. The results showed: pharmaceutical enterprises not only expressed confidence-core philosophy, enterprises practice must also be in the process of development of this core philosophy; forming strategic decisions of pharmaceutical enterprises competitiveness strategy included strategic planning and strategies construction. Strategic planning can be successfully accomplished in the limited rational condition by cooperation and trust of internal staff. Strategy is to build trust into the process, that is, to form trust-based enterprises in this process; ultimately core philosophy, strategic decision-making, strategy implemented through confidence-enterprise culture to achieve integration.Thirdly, major pharmaceutical companies, such as Merck, Pfizer, Novartis, have been made a detailed case studies, and reached conclusions: We should not create core philosophy, but discover core beliefs; Organization must make a concerted to preserve the core and stimulate progress; We always remember trust culture is the core idea; Drug R&D and marketing must pay attention to customers in order to look for new markets; Strategic decision, innovative management and achievements management in Novartis Glivec Corporation are the core ideas of concrete.Fourthly, We got an empirical study of China’s pharmaceutical enterprises about macro environment, industry environment; we combined elements of the environment portfolio analysis system to represent SWOT strategic matrix of the Chinese pharmaceutical enterprises in the new situation. Then, we made case study about the Chinese pharmaceutical enterprises in order to find main problems about competitive strategy: trust is not the basis of the core philosophy and three level can not be integrated.Finally, we put Suggestions from the perspective of enterprise, government and community organization: China’s pharmaceutical enterprises competitiveness strategies are : to re-examine the core pharmaceutical business idea about trust; to take the initiative with stakeholders to establish a relationship of trust to fight for the crisis into strategic opportunities; to find a strategy based on the confidence of the pharmaceutical enterprises strategic entry point (across sectors, the Chinese medicine industry opened a new market; Looking pharmaceutical industry within the different types of strategies and the opening of new markets; leap buyer chain, from doctors to patients, opening up new markets; Looking complementary products or services and to open up new markets; Looking customers functional or emotional demand; Medical reform policies concern the future direction for the value of innovation); Integration core philosophy, strategic decision, strategy implementation of the three dimensions, creating a competitive force; Pharmaceutical enterprises need to establish the full participatory management system. Government departments provided good environment policy measures and proposals for the pharmaceutical enterprise competitiveness strategy: to create a good legal environment for the establishment of trust relationship; to provided preferential policies in order to make enterprise be international pharmaceutical enterprises; national macro-control policies should be centralized pharmaceutical industry quality; national financial markets should vigorously develop risk investment to provide financial support for the pharmaceutical research and development; States should intensify orphan medicines and basic research and encourage pharmaceutical companies to accelerate their commercialization process. Community groups for the pharmaceutical enterprise competitiveness strategy to provide information services suggestions: Pharmaceutical Society should promote pharmaceutical enterprises and the other members of the Association to establish relations of trust; Pharmaceutical Society of should be help pharmaceutical companies to rebuild trust.

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