Demonstration For The Practicability For The Low-price Strategy Of The Par Drugstore

"Par" is considered as a hot topic in the retail business in drug sector in China nowadays. Being its distinctiveness in the industry, the drug retail market has been monopolized ever since. As to the daily necessities, the prices of medicine have extraordinarily beefed up relatively. However, this momentum still tends to be upward, which makes it one of the unsatisfied focuses in the ordinary people.With China's launching the opening system in the drug retail sector, some companies are attempting to establish "Par Drugstore" or "Chain Drugstore" successively to sharply drop the medicine prices so that considerable sales revenues have been produced in a short term. Other rivals are flooding into the same business increasingly. In addition, radios, newspapers, magazines, TVs and even Internets are embarking healing advertisements boastfully. The price war has broken out Chinawide afterwards.The parties involved express various opinions on the low-price strategy for the Par Drugstore. The article treats a subject which the price is merely one of means in the competition and serves the purposes for the economical goal of an enterprise as a whole. The advantages and/or disadvantages of the low-price strategy are solidly associated with the strategic target of a company.The article deals with a topic starting from a strategic target of a firm and developing from an average environment suitable to price war, a competitive environment appropriate to price war and patients' demands based on the price. These developments are supposed to be three assumptions. The author has studied, proved and analyzed the second-hand statistics respectively so as to demonstrate that the low-price strategy for the Par Drugstore is practicable.Through careful survey, it is found out that a medical firm in the process of an average environment and competitive surroundings is expedient to be involved in a tug-of-war in the low-price race. Moreover, the price is also believed to have a vital influence on patients' consumption. Yet, the patient consumers consider that the current market is not mature so far. And they surmise the low-price strategy initiated in the Par Drugstores. It is faithfully advised that the diverse marketing promotions be employed on a basis of long-term interests.What's more, upright commercials should be intensified to boost up impacts on the shoppers.