Hengshan Pharmaceutical Distribution Channel Conflict Management Research

Going with Chinese economic increase medicine industry developed fast. After China joined WTO, competition between internal company and multinational company is more and more drastic .Under the environment of product homogeneity and low profit channel is a main means to strengthen competition. Channel conflict become more and more ardent because of emergence of medicine flow company and medicine chain and adjustment of state policy.Hengshan Medicine must be in face of conflict and co-operation in distribution channel. Under this background, this paper analyzed the distribution channel conflict and management of Hengshan Medicine.Hengshan Medicine not only compete with multination company but also compete with internal company on channel.It is very useful and instructive that the channel conflict and channel management.This paper include five chapter: research background ,competitive environment and detail of Hengshan Medicine are introduced in chapter I ;theory of channel conflict management is introduced in chapter II;problem existing in Hengshan Medicine distribution channel management and the reason of those problem are analyzed in chapter III;in chapter IV,distribution channel conflict management is used to resolve the problem in Hengshan Medicine distribution channel; chapter Vis conclusion of this paper, the shortage of this paper is also introduced in this chapter.Some policies about channel conflict are researched in this paper. Firstly basic price should be stabilization. Process profit return should be pay more attention. Secondly develop multi-channel distribution model .Every kind of channel conflict should be treated properly without affecting traditional channel and existing costume to enhance market occupation rate. Thirdly decisions are supplied to Hengshan Medicine to manage channel conflict.It is needed to construct new Hengshan Medicine distribution channel stratagem based on service marketing through multi sale channel, flat channel, stratagem alliance, branch conformity, productive diversity. By channel conflict controlling Hengshan Medicine may gain success in competition.