Study Of Da Pharmaceutical Companies A Competitive Advantage

Pharmaceutical industry in China is a sunrise industry that preserves steady growth momentum and great developing potential. It has received tremendous attention from various social groups because pharmaceutical products affect people's health. Since the adoption of the reform and open policy in the late 70's, pharmaceutical industry in China has been developing in a fast pace. It has quickly become an important component of our economy. After China entered the World Trade Organization, the pharmaceutical industry has faced intense international competition. Under this large background, it has become a vitally important task in searching for new paths in building up core competitive power, thus, breaking through the restrictive barrier and achieving the next big leap forward. This can be achieved through enterprise competitive advantage study.This current study is conducted in view of two prospects. One prospect is an analysis on the opportunities and challenges confronting the entire pharmaceutical industry. Since entering World Trade Organization, the global market has provided new developing opportunities for the Chinese pharmaceutical industry. Inevitably, this new global environment also brings our industry fierce competitions from oversea counterparts. Through studies on the current business environment of our pharmaceutical industry, we have discovered significant competitive strength built in our industry, and also some unavoidable challenges our industry must face. As an example of the various challenges, our industry owns quite a number of manufacturers with excessive manufacturing capacity, while drug innovation activities are done in a very few. As another example, many manufacturers lacks long-term business development strategy and their marketing strategies are generally obsolete.This paper has also analyzed the company's resources at various aspects by using graphs: research and development ability, manufacturing technology, the marketing strategy, the human resources, and intangible asset and so on. It summarizes that an enterprise's success and competitive advantage lie in the product technology as well as the management mechanism and the mechanism to choose a person for the right position. It also presents several key questions which need to be resolved urgently: how to encourage the innovation, implement the variation strategy, or implement the centralized strategy on one specific market, as well as how to increase the enterprise's management efficiency and resources (including human resources)use efficiency and how to improve organization's ability of adaptation.Based on the above analysis, from a perspective of enterprise competitive advantage, this paper has addressed the unique strength of DA pharmaceutical company on correlation factors of competition power in development relationship, technology innovation, human resources, and enterprise culture by primarily using PEST and SWOT analysis method. It has also discussed and proposed some suggestions on how to develop DA pharmaceutical company's core competitive power. The author hopes that through this case's study, we can discover how well known drug companies have been succeeding in the fierce competition by building up their core competitive power through using their competitive advantages. The author also wants to present the core competition power that every company must have and the way to build up the core competition power in order to give other companies an example.