Localization Strategy Of Multinational Pharmaceutical Companies In The Chinese Market

With the rapid development of Chinese economy, the scale of Chinese pharmaceutical market has expanded rapidly. At the same time, Multinational pharmaceutical companies speed up into Chinese pharmaceutical market. Chinese pharmaceutical market has gradually formed a pattern that multinational pharmaceutical companies and domestic pharmaceutical companies grew along with the competition of each other.In order to develop the Chinese pharmaceutical market, most of the multinational pharmaceutical companies combining with the characteristics of market and enterprise, actively promote the localization strategy.On the background of localization strategy that multinational pharmaceutical companies has carried out, this paper analyzes systematically the theory of localization strategy of multinational pharmaceutical companies, analyzes the localization strategy of multinational companies especially multinational pharmaceutical companies from the theoretical level, launches a detailed theoretical analysis and comment on the strategic choice, the motivation of the localization strategy, the localization process, the main factors affecting the localization strategy.The paper summarizes the development history of the multinational pharmaceutical companies in China, and analyzes the new characteristic and trend of multinational pharmaceutical companies. From the analysis of the international pharmaceutical market and the China’s pharmaceutical market, the paper points out the great attraction of the Chinese market for multinational pharmaceutical companies。Using the SWOT analysis method, this paper compares the multinational pharmaceutical companies and domestic pharmaceutical companies, analyzes their competitive strengths and weaknesses. This paper studies the influence of the pharmaceutical industry development to the future strategy of the multinational pharmaceutical companies. Moreover, this paper point out that the significance of the localization strategy for multinational pharmaceutical companies, think it is the inevitable choice for development of multinational pharmaceutical companies in China.This paper systematically analyzes the localization of basic strategy of the multinational pharmaceutical companies mainly from the five aspects of production localization, localization of R&D, marketing localization, human resources localization and capital operation localization. In this framework, combined with the case of Shanghai Roche Pharmaceuticals, the paper studies the Roche localization strategy and its main measures, indicates the main problems of the Roche and puts forward a number of specific suggestions. Finally, the paper summarizes the conclusion and propose the future research outlook.