Traditional Chinese Medicine Industry Standardization Strategy

Traditional Chinese Medicine (TCM) is key to the Chinese Pharmaceutical Industry (CHP), it shares about 40% of the pharmaceutical market. In the recent years, TCM achieves a fast development with a speed higher than the chemical drugs. But Chinese pharmaceutical industry is in its early stage of development, with the entry to the WTO, patented TCMs or with full-property rights will play a very important role in our pharmaceutical industry and even in the national economy. How to develop our TCM industry and what developing pattern and strategies should we take are very important to our TCM industry.There are four sections in the paper. In the first section, author pointed out the opportunities and challenges that our TCM industry might encounter by analyzing the outer environment and forecasting the developing trends. By analyzing the history and the present situation in our TCM industry, author found the exiting problems and compared our domestic TCM industry with the foreign in the second section. In the third section, author summarized the opportunities and challenges facing our TCM industry, analyzed the advantages and inferior situations in our TCM industry. In the fourth section, by applying the theories of strategic management, author thought that our TCM industry should take modernization and standardization road, adopted the differentiation and low-cost strategies as well as following the pattern of alliance with foreign companies and /or merging with domestic companies, in order to develop our TCM industry. At last, the author also provided a series of measures to ensure the accomplishment of the above strategies.