Research On The Development Strategy Of Hengrui Medicine Based On The Background Of Volume Procurement

In recent years,due to monopoly operations,vicious competition,and information asymmetry in the pharmaceutical industry,market failures such as fragile drug prices,and difficulty in seeing and seeing doctors have been caused.In November 2018,the volume procurement policy came into being.The policy has brought a huge impact on the pharmaceutical industry.The industry is facing the survival of the fittest,the profit has shrunk significantly,and the marketing team has been abolished.But opportunities and challenges coexist,and the state supports independent innovation by enterprises and encourages the development of innovative drugs.In the context of volume procurement,Hengrui Medicine also needs to make strategic analysis and strategic adjustments.This article mainly uses market failure theory,government procurement theory and strategic management theory.For the first time,the market failure theory was used to analyze the background,causes,development,and rules of volume procurement.Second,the impact of volume procurement policies on the pharmaceutical industry was analyzed using government procurement theory and distribution effects.Furthermore,the policy of "volume procurement" Under the background,to investigate and collect the annual reports of listed companies and other methods to understand the relevant data of Hengrui Pharmaceutical’s internal operations,comprehensively use the PEST model and Michael Porter’s five-force model to analyze Hengrui Pharmaceutical’s external development environment and competitive landscape The final chapter uses SWOT analysis and analytic hierarchy process to evaluate the expansion development strategy that Hengrui Medicine should adopt based on the "volume procurement" background.Through research,we have concluded that Hengrui Pharmaceutical Company should focus on the layout and implementation of expansion development strategies,maximize its own advantages,realize product transformation,from imitation to source innovation,continuously strengthen R & D investment and cutting-edge research in biomedicine,and realize the enterprise Sustainable and healthy development.In order to ensure that the expansion strategy can be effectively executed and implemented,this paper systematically and comprehensively extracts the corresponding development strategies from five aspects:transformation from imitation to innovation,strengthening R & D investment,increasing industry mergers and acquisitions,optimizing talent structure,and implementing internationalization strategies safety measures.