A Study On The Development Strategy Of Anhui World Best Pharmaceutical Co., LTD

The pharmaceutical industry, which is a combination of traditional and modern industry, plays an important role in our national economy. Along with the rapid growth in pharmaceutical industry in China, the problems that are many small and disordered companies attract more attention. To reform the pharmaceutical industry and realize the intensive development, Chinese government has taken a series of measures such as encouraging to merger and integrate the small companies.After united with China World Best Group, Anhui World Best Pharmaceutical Co., LTD that was established on the basis of Anhui Taihe Pharmaceutical Co., LTD has developed sharply. However, with continue reforming of the Chinese pharmaceutical industry and controlling of the drug prices, the pharmaceutical circulation field has changed a lot. Based on such background, this paper will focus on studying the development strategies of Anhui World Best Pharmaceutical Co., LTD, to find the sustainable development opportunities on the condition of fierce competition and constant reform.Firstly, after using Porter’s Five Forces Model to analyze the macro environment, we find that the government supporting policies are conducive to carry out the acquisition plan. With the economic development and improving of people’s live standard, the demand of drugs will promote the growth of pharmaceutical industry constantly. Secondly, through the SWOT analysis and combined the current situation of Anhui World Best Pharmaceutical Co., LTD, SO strategy is in line with the sustainable development for Anhui World Best Pharmaceutical Co., LTD. Then, this paper is based on the long tail theory model to analyze the implementation of the SO strategy. The first step is to acquire the small and medium-sized enterprises that has the similar business. The second step is to transform this acquired companies to be professional. The third step is to acquire the companies that have different business. In the end, Anhui World Best Pharmaceutical Co., LTD will control a diversity and complementary pharmaceutical industry chain.