Study On Market Competition Strategy Of Jiangzhong Group

As an important part of the splendid culture of the Chinese nation,Chinese medicine has made a positive contribution to human health and development with its unique curative effect.It shows unique advantages and charm in disease prevention,disease treatment,rehabilitation and health care.Chinese medicine is not only a treasure of the motherland,but also a key to solving medical problems.Jiangzhong Pharmaceutical Group(hereinafter referred to as: Jiangzhong Group)is a leading enterprise of OTC industry in China,which is a collection of production,operation and management of natural botanicals,chemical synthetic drugs,antibiotics,biochemical preparations,bioengineering products and functional foods.Among some modern high-quality pharmaceutical companies,Jiangzhong Group has carried out “Big Market,Big Brand” strategy via product adjustment,brand promotion,management optimization,personnel and information technology to improve the enterprise market competitiveness by virtue of personnel advantages,scientific research advantages and management advantages.Based on the theories of Enterprise Competitive Strategy and Enterprise Competitive Advantage,this paper analyzes the market competition environment of Jiangzhong Group by using PEST model and Five Force model.It reveals the opportunities and potential threats,the advantages and disadvantages in the development of Jiangzhong Group by SWOT analysis,and then puts forward the implementation path of Jiangzhong Group’s market competition strategy from some aspects of management,business,information,brand and human resources.The main conclusions of this paper are as follows:(1)In the market turmoil caused by the global economic downturn and the market expansion caused by the new medical reform,the competition in the pharmaceutical industry is increasing,and Jiangzhong Group is facing new challenges and opportunities.Rearranging timely market competition strategy and putting it into practice are currently an urgent problem to be solved in Jiangzhong Group.(2)The current Jiangzhong Group is facing huge opportunities for development as follows: the new normal operation of the macroeconomic,accelerated population aging,the supporting policy on the Chinese medicine industry,national GMP certification enforcement,effective expansion of the new medical reform,developing space in OTC market,immense health care marketpotentials and so on.At the same time,Jiangzhong Group is also facing severe challenges as follows: further weakening the profitability of products under the health care reform policy,severe disorder in industry competition,national increasing supervision on the pharmaceutical industry,continuous force price cuts,the declining in profit margins.(3)In the face of coexistence of opportunities and challenges in market competition situation,Jiangzhong Group should actively take its advantages: the resources of government and listed companies,excellent organization structure,big production scale and brand,lean production model,a relatively complete independent research and development system,terrific marketing channel management and corporate culture.Meanwhile,we should strive to overcome or transform the existing disadvantages: lack of international competitiveness,lack of high-level personnel from the large multinational group,the simplex product structure,lack of independent intellectual property rights and patent protection,lack of scientific and technological innovation,the weakening control in management and promotion.(4)The market competition strategy of Jiangzhong Group should be adjusted as follows: Jiangzhong Group is trying to carry out “Big Market,Big Brand” strategy via product adjustment,brand promotion,management optimization,personnel and information technology to improve the enterprise market competitiveness by virtue of personnel advantages,scientific research advantages and management advantages.