Research On Competitive Strategy Of Y Pharmaceutical Chain Enterprise

With the continuous development of reform and opening up,the medicine distribution in China has turned government-control allocation into market-oriented one,and the main carrier of drug retail has also gradually changed from public hospitals to retail pharmacies.At the initial stage of market opening of medicine,due to the problems of non-standard operation,the increasing number of medical circulation enterprises and drug retail outlets led to certain market chaos,and the price and quality of drugs were difficult to guarantee.Just when pharmaceutical sales were opened to the market,a disturbed market was once occurred by the non-standard operation and a high volume pharmaceutical businesses and drug retail outlets,and the prices are variable and quality of medicines were hardly guaranteed.After China’s accession to WTO’s Open Drug Distribution Service System,the "GSP" and more in-depth open system and regulations were issued,which effectively suppressed market chaos and normalized the operation of firms.Since the 20th century,relevant policies have focused on promoting the separation of doctors and medicine and reducing the retail prices.The major policies such as "integration of medical care,medical insurance and medicine","deepening reform of medical and health","two invoices policy" and "centralized procurement with quantity" has led to a sharp decline in the retail price of drugs,especially essential drugs,and further narrow the number of individual pharmacies.The policy orientation makes the domestic drug retail industry develop towards normalization,standardization and specialization.Throughout the relatively mature markets such as the United States and Japan,their pharmaceutical stores are highly linked and concentrated.Taking the U.S medicine market as an example,the top three medical chain pharmacies in the United States,CVs,Walgreens,and Rite Aid,collectively have more than 21000 stores,which has accounted for 77.1%for the whole market.It can be seen that the concentration of pharmaceutical retail industry in competition is its inevitable trend.Looking at China’s medical market,although the overall chain rate is 55.74%,the chain quality is not enough,there are too many enterprises and fierce competition,which is far to be mature.Although the total number of drugs stores decreased slightly across the country in 2021,the top 100 enterprises achieved double increase:both in the number of stores and sales,with obvious head effect in the industry.With the increasingly fierce market competition,differentiation and elimination of enterprises are inevitable.How to obtain competitive advantage in the fierce competition becomes an urgent problem for each pharmaceutical retail enterprise.This thesis collects and researches the relevant policies of domestic pharmaceutical retail industry,compares the development rules and successful experiences of mature markets such as the United States and Japan,reflects on the current situation of domestic market development and finally introduces relevant problems.And by studying the relevant theories of strategic management,the research ideas are summarized and the analysis tools are selected.In the external environment analysis,PEST is used to comprehensively analyze the external environment of Y enterprise from four classical perspectives such as politics,economy,society and technology and form a EFE matrix;In the internal factor analysis,from the Y enterprise development status,resource capacity,human resources,enterprise culture,logistics distribution and other aspects combined with competitive analysis to analyze the internal factors of Y enterprise comprehensively and to form a IFE matrix.Using SWOT,three alternative strategies are concluded according to the strengths,weaknesses,opportunities and threats summarized in the internal and external parts.Finally,the total available score of each alternative strategy is calculated using the QSPM matrix.Thus,WO is selected as the final strategy in this thesis.Based on the previous analysis,this thesis proposes a series of strategies implementation and guarantee measures with differentiation strategy as its core.This thesis takes Chinese medicine market as its research foundation,comprehensively analyses Y enterprise’s internal and external environment,and puts forward corresponding strategy implementation and guarantee measures.The conclusions of this thesis can also act as a reference for the development of many chain pharmacies in China,which is practical.In strategic management research,this thesis uses analysis tools such as IFE/EFE matrix and QSPM matrix to get quantifiable strategic analysis results by scoring each alternative strategy,which is very innovative.