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The Strategic Change In Business Model: Essay On The Shift Of The Big Pharmaceutical Companies Business Model

Posted on:2015-12-11Degree:MasterType:Thesis
Country:ChinaCandidate:K W T h o m a s V A U Z A N Full Text:PDF
GTID:2309330452954942Subject:Business management
Abstract/Summary:PDF Full Text Request
The following essay is dedicated to the shift in business models in the pharmaceutical industry.The pharmaceutical industry is currently going through changes that affect the way it performs itsresearch, manufacturing, and regulatory activities. Patent expirations, R&D process paradox, thegeneric development and the decrease of developed countries markets have dramatically changethe landscape for the pharmaceutical industry. Traditionally, the companies conduct theirbusiness around the blockbuster drug development and production. In the new environment, thismodel seems no more relevant if companies wish to maintain their profitability. Pharmaceuticalcompanies are shifting their defragmented or fully integrated model to risk aversion and catchnew opportunities. To conduct our research, first we present and analyse the current literaturereview on the business model concept using notably the frameworks of Casadesus-Masanell R.,Ricart J.,(2010), Demil B., Lecocq X.,(2010), Osterwalder A., Pigneur, Y.(2010), Verstraete T.(2012). After the presentation of the concept history and current definitions, we study thetheoretical perspectives of BM changes with the different degree of changes, its process and itsimpacts on the BM structure. The literature review enables full understandings of the currentconcept and implications of the BM change. Then, we realize an empirical research on thepharmaceutical industry business model changes composed by in-depth interviews withpharmaceutical consultants and big pharmaceutical managers and secondary data to study theway they changed their way to do business. We lead our survey on the top5big pharmaceuticalcompanies and we complement it with data from new pharmaceutical firms (biotechnology firm,generic firms, and medium pharmaceutical corporations). It aims to analyse the shift from theblockbuster model, the new business model structure and the new business strategies hold by thebig pharmaceutical companies to ensure their growth and profitability. This paper concludes onthe contributions of the research on the perspective of changing BM, especially in thepharmaceutical industry.
Keywords/Search Tags:Business model, pharmaceutical industry, business strategy, customer and scientificexcellence, blockbuster business model, defragmented business model, value proposition
PDF Full Text Request
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