Value Chain Management - Holley Pharmaceutical Path To Victory

This paper analyzes the value chain theory and gives a case study of Holley Pharmaceuticals on the value chain strategy and its implementation.Expansion from its main business of electricity meter to pharmaceuticals industry, Holley Group has rapidly emerged in pharmaceuticals industry by merge with only 6 years. At present, it is leading the world in research & development and production of Qinghaosu(Artemisinin). Qinghaosu(Artemisinin) anti-malaria medicine has been recognized and recommended by World Health Organization due to its good efficacy. Holley Group is striving for the development of the biggest Qinghaosu(Artemisinin) industrial chain in China or even the world in 3-5 years. Holley Group has continuously invested in Qinghaosu(Artemisinin) industry since 2000. During the strategic transition, Holley Group has carried out four major activities, that is, the cultivation of Qinghaosu(Artemisinin) resources; extraction and pharmaceutical processing of Qinghaosu(Artemisinin); research and development of Qinghaosu(Artemisinin) series new medicines and the establishment of pharmaceutical marketing center, leading to the sound integration of the industrial chain. At present, Holley Pharmaceuticals becomes the flagship of botanic pharmaceutical enterprises of Holley Group.However, Holley Pharmaceuticals is facing many challenges ranging from the raw materials of Qinghaosu(Artemisinin), threat of the alternatives, the trend from single reagent of Qinghaosu(Artemisinin) to combined preparation as well as the competition from international pharmaceutical giant - Novartis Company.In order to develop into the biggest player of Qinghaosu(Artemisinin) with complete industrial chain in the world, Holley Pharmaceuticals has made huge efforts in such areas as the research & development of new drugs, development of modern marketing mode by capital export, acceleration of clinical trial of Artkin and inclusion of Qinghaosu(Artemisinin) derivative medicines into the procurement list of WHO with certain achievements.