Study On The Entry Mode Of Chinese Pharmaceutical Enterprises Into Overseas Market

Since the beginning of the 21st century,China’s economic growth rate has been steadily rising and China’s position in the global economy has gradually improved.In recent years,China’s pharmaceutical market has become the second largest pharmaceutical market in the world after the United States.The pharmaceutical industry has also developed rapidly and the competition of pharmaceutical manufacturing enterprises has become increasingly fierce.To respond to the changes of the market,a large number of excellent pharmaceutical enterprises in our country have responded to the relevant policies of the country,actively participated in the foreign investment and began to distribute in the world and realizing the international operating.Facing the complex international market environment,it is especially important for domestic pharmaceutical enterprises to choose the right market in the process of overseas investment.This paper studies and discusses the mode of overseas market entering in the process of domestic pharmaceutical enterprises realizing their international operating.By studying a flood of literature and collecting data,the author summarizes the current development status and characteristics of Chinese pharmaceutical enterprises and determines the internal and external environmental factors that affect the domestic pharmaceutical enterprises’ choice of mode of entering overseas market.Six main influencing factors are proposed:home country policy,host country market demand,host country policy,industry attraction,internal resource endowment and product characteristics.For the choice of mode for pharmaceutical enterprises to enter overseas markets,five main ways are summarized:direct export,investment for new constructions,joint venture,overseas M&A,strategic alliance.This paper takes Fosun medicine,a private pharmaceutical enterprise in China,as a case study to determine the alternative market entry mode,the factors affecting the choice of market entry mode and the evaluation of each influencing factor.Then,the best mode for Fosun medicine to enter the overseas market is selected by AHP.Finally,the selected entry mode is analyzed and evaluated and the corresponding suggestions are proposed.The research results can provide some reference experience for more domestic pharmaceutical enterprises to explore overseas markets.