Business strategy: the case of global pharmaceutical industry Introduction According to Holland (2010) in her case study “The global pharmaceutical industry: swallowing a bitter pill” there are three generic important forces that essentially drive the pharmaceutical industry and these include the following: unmet medical needs, innovation and time to market, and globalisation…
The industry sectors evaluated in this essay are ethical pharmaceutical companies, generic manufacturers, and biotechs. The pharmaceutical industry The global pharmaceutical industry faces significant twist in the twentieth century due to varying changes in the business environment. Holland is right, unmet medical needs, innovation and globalisation are critical driving forces of the industry. This is agreed by various researches, studies and evidences aiming to create assessment of the global pharmaceutical industry (Bianchi et al., 2011; Shah et al., 2009; Schmid and Smith, 2007). The next point is to evaluate whether these forces are what drive in each industry sector. The ethical pharmaceutical companies are broader since their products cover conventional pharmaceuticals, biopharmaceutical agents and vaccines and over the counter medicines. As a result, Holland points out that the key strategic capabilities of these companies are Research and Development and Sales and Marketing. Boone and Kurtz (2006) emphasize that companies which focus on these activities are dynamic at creating a need for their service or product offerings. This implies that the ethical pharmaceutical sector is somewhere between growth and maturity level in the industry life cycle while very particular at meeting unmet medical needs, innovation and globalisation. In fact, production and outsourcing are another two essential focus of this sector just to cover a wide range of geographic market coverage (Holland, 2010). The generic manufacturers on the other hand among any other concerns are particular with accessing new technologies so as to reach markets with untapped potentials (Holland, 2010). Regarding this, the said sector is invariably looking forward to achieve manufacturing and distribution efficiency. Manufacturing and distribution are broader in context, but they are also associated with growth and development (Kruger, 2006). The generic manufacturer sector is also dynamic as it tries to continually search for markets with untapped potentials and even attentive with patent concerns. Again, companies with this level of thinking cannot just simply skip the need to innovate, create or meet needs and be influenced by the global business force (Boone and Kurtz, 2006). The sector for generic manufacturer is somewhere between growth and maturity level in the industry life cycle. Finally, the sector for small biotechnology start-ups or biotechs like the previous sectors are also concerned with meeting needs, marketing concerns, but above all financial restructuring due to long-product development, so it would take time to realise profitability (Holland, 2010). Distribution of its product to market seems to be the primary concern of this sector. Thus, time is the essential contributing factor why for instance this sector embraces merger or acquisition (Holland, 2010). In the 21st century, this issue is a global concern that drives major businesses, not only to innovate possibilities but gain market share by creating or meeting needs (Boone and Kurtz, 2006). Due to its restructuring activity, this sector is still primary moving forward to a growth level in the industry life cycle stage. Conclusion It is clear that unmet medical needs, innovation and time to market, and globalisation are essential forces that definitely move the different sector in the pharmaceutical industry. Even though only one ...
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