Shsek Pharmaceutical Co., Ltd. Development Strategy

The industry of drug distribution combines logistics and drug manufacture. Thecharacteristics of the drug distribution corporations in China are narrow scale, excessivemembers and products, and low efficiency. To be specific, narrow scale refers to thatmost manufacturers are running in the limited scales; excessive members and productsreflects that substantive companies produce a huge number of goods; low efficiencyreveals that general firms are not intensive with a low profit, moreover theadministration is ineffective. Consequently, in 2005, the whole industry of drugdistribution of 17 provinces and cities had a deficit of 634 million. With vastinvestments, demanding supervision and high risks, Chinese drug distribution industryis faced the pressure from the foreign competitors after China had joined the WTO.Argument on the features and perspective of the industry is extremely significant for itsdevelopment and reform.This thesis intends to provide the effectual ways and directions of the industry,especially midsize and micro corporations, via discussing the strategies of a typicalcorporation SHSEK MEDICINE CO., LTD.By utilizing the relative theories of strategic management and the integration ofboth internal and extemal environment, this disquisition matches the tactics of SHSEKMEDICINE CO., LTD. with the varying industry, the competition status, and theCorporation's resources and competitive capacity; it decides the operative boundary anddeveloping target, it also promotes the correlative steps to implement the strategies intobusiness in the corporation.As Chinese economy being involved gradually with the tide of globalization of theworld economy, a more and more intricate competition environment and a great numberof tougher competitors are facing the drug distribution enterprises in China. At the meanwhile, most nation-owned drug distribution enterprises have disadvantages in theabilities to survive in emergency and compete in the market; they are also lack of aspecific operative strategy. The investigation of this disquisition only resolves theestablishment problems of strategies in SHSEK MEDICINE CO., LTD., it is believed to be also a good reference for most mid-small drug distribution enterprises which arestruggling at the edge of deficit; it specifies the way to participate in marketcompetitions with a logical strategy.