Study On The Competitiveness Of Chinese Pharmaceutical Companies

The publishment of universal two-child policy from 2016 and the tendency of country's aging lead the demographic dividend decreased and labor-intensive industry is losing advantage of competitiveness. The enterprises had to exit the market if the profit is less than the cost. However, the universal two-child policy and aging tendency are big opportunity for us due to the increasing pharmaceutical demand from these two fields. In recent, from point of view of the hardware, such as the building and layout of factory are better than those in Westen countries, Chinese pharmaceutical companies are on the weaker status of competitiveness in the international market because most pharmaceutical companies compete in the market of active pharmaceutical ingredient or generics which are fighting for price, then the profit become smaller and smaller.As we all know, the main sauce of profit comes from the success of new drug. While our pharmaceutical companies are seeking the limit opportunity in the field of generics, hard to step into the first class drug R&D due to the lack of professional talent and technique.The current status of Chinese pharmaceutical companies are stated in the view of 360 degree on based of Western Economics,International Economics and the Competitive Advantage of Nations. At same time, I analyze the problems existing in Chinese pharmaceutical companies as per the elements from the competitive advantage of nations and advise the suggestions at aim to improve the competitiveness of Chinese pharma and the status in the international market.The main content of this study is as below sections. The first section is to introduce the purpose and idea of this paper and the logic roadmap. In the second section, I systematically summarized and consolidated the original theories of the competitiveness and related literature. In the third section, the writer analyzed the full industry chain of pharma currently from the perspective of marketing, operation, management and policy. In the end, in order to help Chinese pharmaceutical companies to be a leader in the pharma industry, as per the current problems, some reforms and political proposals are submitted and hope our Chinese pharmaceutical companies to capture more market share in international market and improve our competitiveness.