Competitive Strategies In The Chinese Patent Medicine Industry:A Case Study Of Junsheng Pharmaceutical Co.,Ltd

Junsheng Pharmaceutical Co.,Ltd.(Junsheng Pharmaceutical),a subsidiary of Guangzhou Pharmaceutical Holdings Ltd.founded in 1868,is one of the earliest state-owned enterprises in China to win the honors of the "China Time-honored Brand","Intangible Cultural Heritage" and "National Quality Award".Junsheng Pharmaceutical is mainly engaged in Chinese patent medicine industry and is a pharmaceutical enterprise integrating drug research and development,production,and sales.At present,the traditional Chinese medicine industry is experiencing a period of historic opportunities for major achievements.However,the Junsheng Pharmaceutical is undergoing a dissatisfactory state of development at present,mainly due to the unclear business strategic positioning as well as weak business competitiveness.Therefore,a study on competitiveness enhancement strategy of Junsheng Pharmaceutical was conducted.Based on Porter’s competitive strategy theory,this paper uses PEST and Porter’s Five Forces tools to analyze the internal and external environment of Junsheng Pharmaceutical through secondary data collection method and interview method.The competitors were filtered and analyzed through the Competitive Profile Matrix(CPM).Then,the alternative strategies were derived from SWOT analysis and optimized with Quantitative Strategic Planning Matrix(QSPM).Finally,the company’s selection and implementation of differentiated strategies is determined,and the specific implementation measures for the differentiated strategic direction and the guaranteed conditions for the implementation of each strategy are clarified.It is to be hoped that the results of business competitiveness strategy analysis could aid with the improvement of the competitiveness and strategic management level of the Junsheng Pharmaceutical and provide guidance for the high-quality and sustainable development achievements in the future.At the same time,it provides insights for other pharmaceutical enterprises in China,especially proprietary Chinese medicine enterprises and time-honored Chinese enterprises,to implement scientific strategic decisions to improve their competitiveness under the new situation in the post-COVID-19 era.