Research On Franchising Model Of Pharmaceutical Enterprises In China

Since 1990s, franchising has become a hot topic in China and become the common focus of the investors, governments, market researchers and entrepreneurs. Franchising is regarded by companies as a new way of winning competitive advantages. However, franchising is still in its early stage in China both in the realm of practice and theory. Therefore, it is essential to make a relating research systematically, especially a research regarding the development of franchising in pharmaceutical industry, which will not only provide guidance to the franchising of pharmaceutical marketing enterprises, transform the traditional marketing mode of them, but also provide an insight to the theoretical research for the franchising practices of pharmaceutical enterprises.Literature review, theoretical analysis and induction method were mainly used in this research. There are two innovation points provided in this paper. Firstly, a third party logistics (TPL) based franchising model regarding pharmaceutical enterprises was put forward. Secondly, the extent of market influence and sales profit were used to act as the standard to differentiate pharmaceutical market, based on which franchising model is selected by enterprises and implemental factors are decided.In the beginning of this paper, the concept of franchising and franchising of pharmaceutical marketing enterprises were defined. And then in the literature review, the author discussed the nature of franchising, organizational principle, operational risks of franchising, the relationship between franchising and chaining business. Next, the author also analyzed the present marketing situation of Chinese pharmaceutical marketing enterprises, including distribution channels of pharmacy, the characteristics of domestic pharmacy market and the domestic pharmacy marketing modes, the advantages and disadvantages of regional agency system. Based on the analysis, a franchising model regarding pharmaceutical marketing enterprises was designed and three different kinds of pharmaceutical franchising model and model selective chart were provided.In the end, the author gave suggestions as to how to implement franchising model in Chinese pharmaceutical marketing enterprises, which include establishing a systematic franchising process, improving franchising model, strengthening human resources management, and establishing logistics distribution network.