Ningrui Pharmaceutical Company Development Strategy

Pharmaceutical industry, known as the "sunrise industry", has long been growing at a high speed since the reform and opening-up, and has become an important component of our national economy. The industry has entered a phase of the intense market competitiveness in the late 1990s. Along with the accelerated opening up of the pharmaceutical manufacturing and circulation industry in China, the reform of medical industry was also deepened step by step, thus, structural changes occur in both internal and external environments of the pharmaceutical industry.As a medium-sized private enterprise, Ningrui Pharm is facing the same problems with other counterparts in the industry, including the limited production scale, a low marketing level, repeated production, weak R&D capability, unutilized capacity, competition of low cost in the industry, strict environmental requirement, price hike in upstream raw materials, and the increase in staff salary, etc. With the multiple pressures it faces, Ningrui Pharm encounters a severe survival crisis. Thus, it is urgent and necessary to conduct a reappraisal on its own behaviors, revise its aims and actions from the strategic perspective, develop a strategy of sustainable development that suits its progress, fully assemble the resources, take advantage of comparative advantages, and thus enhance the enterprise's competitive edge.First, the enterprise needs to clarify the current competitive environment and future developing direction. Next, it ought to analyze its pros and cons, establish departments accordingly, and formulate competitive strategy that suits the current situation the enterprise faces under the direction of experts. Furthermore, the enterprise needs to work out the clarified implementing goals and detailed implementation steps according to its competitive strategy.The paper reaches the following conclusions based on the analysis on Ningrui Pharm's inner and outer environment. One, the opportunity is greater than the threat in its outer environment. To begin with, the overall positive domestic and international environment provides opportunities; next, the industry policy provides incline and protection; last, the industry of one-time use of sanitary disinfection products and external medicine, as the sub-industry of pharmaceutical industry, is experiencing a rapid development with its annual growth rate far beyond the average figure, and the demand is still growing year by year thus creates a large market space. Two, the advantage in Ningrui's inner competitive environment mainly manifests itself in its main products formula, which is an economical and environmental protection products and possesses certain leading edges and brand effects. Nevertheless, more efforts are needed to increase the product diversity, enhance channel management, establish and maintain the customer information system, foster corporate culture, and strengthen the brand management.The paper puts forward the development strategy target for Ningrui Pharm for several years in the future, with the application of SWOT analysis, BCG matrix analysis, and QSPM analysis. The paper also points that the enterprise should pay attention on increasing its market share, innovate marketing mode to improve its competitive edge, perfect product mix, adjust product strategy, foster corporate culture, enhance staff training, assemble resources and strive for a win-win situation. Coupled with competitive strategies of overall cost leadership and product differentiation, the enterprise could try some new methods to make profit, apply reinforcement strategies, and make efforts for further development.The paper includes empirical study and analysis on the establishment of Ningrui Pharm's developing strategy, and the study outcomes not only has practical value to the enterprise, but also brings reference to other enterprises in the same industry.