Research On Advancing Competitiveness Of Traditional Chinese Medicine Industry Based On R-SCP Analysis

The Chinese traditional medicine industry is the cultural treasures of China. Today, the needs and attention of plant medicine is growing every day in the world. Under this international environment, how to make the Chinese traditional medicine industry to a larger scale and stronger strength is an important issue placed to the Chinese government, enterprises and scholars.As a more resource-dependent industry, the comparative advantage of resource conditions is still largely determines a country’s competitiveness. Based on the application and improvement of existing theory, the analysis of Chinese traditional medicine industry in the development process, present situation and development trend, the combination with the characteristics of Chinese traditional medicine industry, the addition of resource elements to the classical SCP model, the R-SCP industry analysis framework is constructed. Then, the resource elements, market structure, market behavior and market performance of Chinese traditional medicine industry has been analyzed in detail.Combined with Potter’s "diamond model", and the industrial competitiveness theory, such as World Economic Forum (WEF) and the Lausanne International Management Institute (IMD) suggests that international competitiveness is the integrate of competitiveness assets and competitive process, the competitiveness evaluation index system of Chinese traditional medicine industry, composed by six dimensions that are resource competitiveness, competitive strength, innovation competence, management competence, market competitiveness, the growing competitiveness, is constructed. Then using factor analysis, the competitiveness of Chinese patent medicine industry and Chinese herbal pieces industry in year2007-2010is evaluated respectively. The competitiveness of Chinese patent medicine industry in Shandong, Jilin, Jiangxi, Guangdong, Sichuan, Chongqing, Henan, Heilongjiang and Jiangsu have advantage, especially in Shandong and Jilin, which two province have absolute advantage and always been a leader leading the whole Chinese patent medicine industry develop. The competitiveness of Chinese herbal pieces industry in Sichuan, Shandong, Henan, Anhui and Guangdong has absolute advantage.Analyzed the Chinese traditional medicine industrial competitiveness scores and the balance between different competitiveness dimensions, this paper found that in Chinese patent medicine industry, Jilin, Henan and Guizhou not only have a high competitiveness, but also have a balanced development of different competitiveness dimensions, indicating that the comprehensive development of Chinese patent medicine industry in these regions has a relatively stable trend in the future. But Xizang, Hainan, Xinjiang, Shanxi and Guangxi not only have disadvantage in getting competitiveness score of Chinese patent medicine industry, but also have a poor balanced development of different competitiveness dimensions, indicating that the comprehensive development of Chinese patent medicine industry in these regions may be unstable. Analyzed the Chinese herbal pieces industry, this paper found that Sichuan, Shandong and Anhui not only has the very high competitiveness, but also have a balanced development of different competitiveness dimensions, indicating that the development of these regions may be stable in the future. Contrarily, Shanghai, Shanxi and Guizhou not only have disadvantage in getting competitiveness score of Chinese herbal medicine industry, but also have a poor balanced development of different competitiveness dimensions, indicating that the development of these regions may be unstable.Based on the comprehensive in-depth analysis of Chinese traditional medicine industry organization and competitiveness, this paper put forward some countermeasures and suggestions, in order to improve the technological level and innovation ability of Chinese traditional medicine industrial, increase the resource protection, establish a strategic reserve of medicinal material, achieve sustainable development of Chinese traditional medicine resources, establish and improve the modern enterprise system, optimize Chinese traditional medicine industry structure, cultivate large Chinese patent medicine enterprise group, improve policies, regulations and standards, and strengthen industry supervision.