The Business Strategy Analysis Of Beikeneng Company

Guangzhou Beikeneng Bio-tech Development Company is engaged in drug R&D and distribution.China entered the WTO in 2001. During the recent years, the statutes of drug administration have been revised, and the government has promoted the innovations in the three systems of medical treatment, medical insurance and drug circulation. All of these have profoundly influenced the pharmacy industry in China. Beikeneng company is confronted with the great changes in policy environment after the re-definition of new drug, the evolvement of the ways to protect new drug from administrative protection to patent protection and the revision of rules of drug register.In this article, after studying the pharmacy industry in China and the statutes of drug administration, the author illuminates the impact of policy transformation upon drug R&D and register, and points out the development trend in drug circulation, then describes the present value chain of pharmacy industry and the other one in 5 years. The present value chain, which soars in R&D, register, marketing and medical treatment organizations, will be badly compressed in 5 years.By means of SWOT and value chain, the author analyses the strength, weakness, opportunity, threats and core competence of Beikeneng company to position it in the value chain of pharmacy industry, and to study the short term and long term business strategies of the company, resulting in the conclusion of core businesses: R&D and marketing.