Pharmaceutical Distribution Companies In China After The Accession To The Wto Challenges And Countermeasures

On Dec.11, 2004, our government realized her promise to enter WTO, and open pharmaceutical distribution market to the outside. From now on, our pharmaceutical market will gradually come into a fully competitive phase. Facing the new situation, a powerful strategy is a must for our pharmaceutical dealing company to win a good position.Through PEST analysis of macro environment and pharmaceutical industry's competitiveness, it is obvious that the competitiveness is austere in pharmaceutical industry, while with good prospect. Pharmaceutical companies can be divided into large pharmaceutical group and small dealing companies according to the degree of vertical integration and application of distribution channels. Under new situation, they should cope with the challenge to grow and survive. So, the strategy of the former is to cultivate and strengthen its core competitiveness in condition of maintaining and creating position advantage, while the lather's strategy is to win a standpoint through innovation, flexibility, and diversity strategy in the niche market. Although government is not the focus of strategic management, the policy do effect companies' operation, it is proposed that government carry out the reform to let hospitals centralize purchase by bidding, to divide hospitals with medicine industry, to fully exert self adjustment ability of market, and moderately reduce government intervenes so as to insure the healthy and orderly development of pharmaceutical industry.