R&D And Market-Based Studies On The Modernization Of Chinese Traditional Medicine (TCM)'s Strategy

As a treasure of Chinese, Traditional Chinese Medicine (TCM) is getting the world's attention increasingly. As one of China's few areas with the international strength, Chinese medicine field has become a common attention in the pharmaceutical industry.30 years ago, China proposed the development of the modernization of TCM, but until the mid to late 90s of the 20th century, the concept and specifications of " modernization of TCM " had been formed at a real sense. Modernization of TCM refers to using modern science and technology, combined with the advanced characteristics of TCM, to guide the research, development, production, management and applications of the Chinese medicine, to meet the demand of social development. Modernization of TCM is an important part of Modernization of Chinese medicine, but also is a focus area of the pharmaceutical industry development. In the 30-year period of implementation of TCM Modernization strategic, Chinese medicine industry has made significant achievements. But as the concept of health and medical model is changing and the science and technology is processing, the development environment of TCM has being undergone profound changes, and now is facing lots of new opportunities and challenges from global competition. How to seize opportunities, meet challenges and develop strategies to promote the healthy development of Chinese medicine field, and how to improve the overall level of R & D and international competitiveness of Chinese medicine field, will become the problems to be solved of the China's "Twelfth Five-Year Plan" of Chinese medicine industry development.In this paper, based on the analysis of research results of the modernization of TCM at home and abroad, some new ideas about concepts of the modernization of TCM and Chinese medicine have been put forward. Then combining with internal and external environment of the modernization of TCM is facing, such as changes in disease spectrum and the medical model, increasingly fierce global competition, the expansion of natural medicine market and the impact of domestic new health care reform on pharmaceutical enterprises, the strategy of modernization TCM has been analyzed at great length, and from a new perspective the development strategy of modernization of TCM also has been re-examined. Based on the system theory, two key strategic issues which are TCM's R & D and market development has been derived by using the theory of dynamic comparative advantage. And then strategic analysis and strategic choice has been made by the industry strategic management approach-SWOT analysis.Modernization of Chinese medicine is to give full play of science and technology. pay equal attention. to both inheritance and innovation, unite the advantages and features of TCM together with modern science and technology, enhance corporate R & D capability and core competitiveness. However, in order to achieve the core strategic goals, companies should research and develop a number of modern medicine and then put on the market, they are easy taken, with clear efficacy and reliable quality, in China,R & D in Chinese medicine has exceptional advantage in medicinal materials,talents and research resources; what's more,profound cultural heritage,theory and practice accumulation of Chinese medicine is our country's core competitiveness which cannot be copied. But now the factors restricting the progress of Chinese medicine research and development cannot be ignored, for example, the integration of resources is not perfect, research institutes, university resources do not contact enough closely with companies; the innovative platform of Chinese medicine of bringing together multidisciplinary professionals, multidisciplinary impact and blend has not been established; many companies do not place enough emphasis for Chinese medicine research and development, whether the government support or company's independent R&D funding are both inadequate; and lacking of basic research is now a bottlenecks in Chinese medicine research and development.In addition to internal strengths and weaknesses, we should focus on the external environment of Chinese medicine R & D. one side, Circumvent the threats'of TCM resources dwindling and the loss of intellectual property rights, the other side, seize external opportunities, borrow ideas from international new technologies for TCM research and development; take the comparative advantages of chemical drugs to develop the market of Chinese medicine, research and develop products which international like to consume for nourishing of life, health care and cosmetic.Market is the most important thing for all companies, and the companies achieve its value in the market. All companies depend on the market. Without of the market, all companies would not exist. Therefore, to seize the opportunity form the market, it is of great importance for Chinese companies to analyze the TCM market before they make their market strategy. With the development of society and the increasing of the people's quality of life, our human has pay more and more attention on our healthy, and modern medical also has pay more attention on the overall regulation of the human body to maintain the body's yin and yang balance. Compared with the chemical drug, the TCM has many aspects of advantage, such as the ancient and useful TCM theory, high safety and low toxicity, and it unique effect in cancer, cardiovascular, cerebrovascular disease, senile diseases, viral diseases and other incurable diseases. It is no doubt that these features of TCM are in accordance with our daily life. What's more, the Chinese new medical reform has channel the TCM into the basic drug list, and the Growing aging population also has provide a vast market to the TCM company. However, our drug industry still face some challenge. First, the quality of some TCM is not stable. Second, many well-known multinational pharmaceutical companies have begun to research the botanicals. In addition, the Europe and the United States have developed a variety of stringent trade barriers and technical barriers to restrict Chinese drug industry.However the effective implementation of the strategy also requires government's and corporation's policies and measures. Based on the SWOT analysis of the modernization of Chinese medicine industry in China, some feasible specific strategies have been put forward, such as strengthening the basic research of Chinese medicine, strengthening the intellectual property protection of traditional Chinese medicine, strengthening the personnel training and education, fostering domestic markets of TCM industry, strengthening the international development and utilization of traditional medicine, choosing some enterprise groups to cultivate Chinese medicine multinational companies, and dealing with international trade barriers effectively by the government.