Competitive Environment And Development Strategy Of China's Large Pharmaceutical Distribution Enterprises

Along with the growth of national economy, domestic medicinedistribution is in high development process. However, due to historicalreason, foreign investment and governmental policy adjustment, at presentmost of the medicine distribution enterprise have some problems, such aslow economic scale and market decentralization, low management level,short of competition strategy, high cost, less profitability, short ofretail network and its uneven distribution. These problems compel themedicine distribution enterprise to adjust development strategies, whichsuitable for situation of China, in high competitive market environment.This essay is based on large scale medicine distribution enterprise.It starts with developmental history, then describes current status andpossible trend of domestic medicine market, and then analyzes inner andouter environment of medicine distribution enterprise and their profitmodel respectively. Based on the exertion of marketing and competitionstrategy management theories, main strategies for domestic medicinedistribution enterprise were given upon the roles of enterprise indistribution chain and potential entroant. The strategy is activelyobtaining domestic and foreign capital, building a nationwide super largemedicine group company, which integrated R&D, production and distribution,with merge and acquisition method, for exploring rich productionresources and improving marketing network, setting up a speediness andwideness logistic network. As a result, total cost advantage incompetition will be accomplished by improvement of internal managementlevel and marketing means, and implementation of advance networkinformation technology with the transition to distribution withreasonable profit and professional logistic service with commission.