Study Backward Integration Strategy Of D Medical Company

This paper tries to study Backward integration strategy of D medical company, that is the transformation from purchasing medicines from suppliers to internal supply by establishing new Pharmaceutical operating company.Chapter one introduction discusses D medical company’s problems, significance of the topic, studying method and innovative points; Chapter two is the Literature Survey of backward integration strategy; Chapter three analyzes the external environment and internal environment of D medical company; Chapter four discusses the mission, vision, strategy objectives and the choice of backward integration of D medical company; Chapter five is the measures of applying backward integration of D medical company; Chapter six prospects the future study.This paper uses the methods of literature studying, case studying and Qualitative studying, and uses PEST model, five competitive forces model, EFE Model, Value chain model and SPACE Matrix model of strategy management. This paper also collects relative information for studying.The conclusions of the paper are the followings, the company needs to adjust its strategy for lack of positive and effective reaction to external environment based on analysis of external environment of D company; D company’s internal conditions lie on competitive advantages based on the internal conditions analysis of D company; D company’s strategy should be aggressive and can use market development, product development, backward integration strategy, forward integration strategy and horizontal integration etc. D company should apply backward integration strategy by establishing new Pharmaceutical operating company based on Feasibility study of these aggressive strategies. D company should apply admittance into industries of subsidiary, preparation of operations, and actual operations if it uses backward integration strategy; The admittance is to get 《Pharmaceutical Trade License》, The preparations of operations is to prepare culture design, organization structure, system design, and resources allocation.The actual operation is to purchase medicines, to sale and distribute and to quality control, The innovative points of this paper are the followings:finding a new purchasing model for D medical company; finding a new medicine price formation mechanism for new medicine; finding a new performance Appraisal method for salesman.