Research On The Value Chain Management And Competitive Advantage Of Hunan Shuanghe

With the development of market reform in China, more and more private enterprises are entering into the medicine circulation market, especially with China's entry to the WTO, the foreign businessmen are authorized to purchase, store, transport, wholesale, retail medicines and to provide after sale services in China. Therefore, the competition of the medicine market will be more and more fierce. Facing this fierce competition, the Chinese medicine enterprises must adjust their own value chain in order to enhance their competitiveness and to be in an invincible position. This paper takes Hunan Shuanghe Pharmaceutical Co., Ltd. as the research subject, analyzes its current management situation, remaining problem, the external business environment, value chain and all kinds of internal value activities. And this paper also suggests the ways to upgrade its supply chain and alliance and chain-store marketing strategies.Based on the research, this paper found that the procurement is the most important value-creating activity in the medicine circulation enterprises. So, the Company should take its own advantages to make alliances with suppliers. In addition, the marketing is a direct value-creating activity of the medicine circulation enterprises. The Company should immediately adjust its marketing strategy and establish alliances with wholesalers and retailers which will benefits to both of them. By adopting the procurement and marketing strategies, the Company will create the sustained competitive advantage.