A Study On Integration Path And Economic Consequence Of Kangmei Pharmaceutical Industry Chain

In recent years,in order to improve the state of dispersed distribution and low concentration of pharmaceutical industry,government departments have introduced a series of documents and policies,encouraging pharmaceutical companies to merge and guiding enterprises to integrate.Following the rapid growth in 2015,pharmaceutical companies' merge and acquisition show a growing amount of money in 2016.The entire pharmaceutical industry is in high time of mergers and acquisitions integration.Layout of the whole industry chain has become the backbone of many pharmaceutical companies' strategy.They have extended the industrial chain,traveling up or extending downstream.They involve in pharmaceutical research,pharmaceutical business and terminal Chain pharmacies,and even some pharmaceutical companies starting to invest or buy the hospital,intending to expand their business scope,having a complete industrial chain,grasping all the links from source to terminal,and enhancing the operating strength for their own external growth speed.In order to explore the path of Kangmei Pharmaceutical's whole industry chain integration and its economic consequences,based on the summary of relevant literatures at home and abroad,according to industrial organization theory,value chain theory,synergistic effect theory and transaction cost theory,this paper analyzes the integration of the whole industry chain of Kangmei Pharmaceutical Co.Ltd,from the aspects of vertical integration,horizontal integration and lateral integration.Adopting incident research method and financial index method,this paper analyzes the possible economic consequences of Kangrmei Pharmaceutical Industry Chain,hoping to provide some appropriate recommendations for other pharmaceutical industry's whole industry chain integrationResearch shows that:(1)the integration of the whole industry chain not only conform to the development direction of the pharmaceutical industry,but also cater to the needs of enterprise management strategy.(2)When pharmaceutical companies integrate the whole industry chain,companies can choose three integrated path:horizontal integration,vertical integration and lateral integration.(3)the integration of the whole industry chain achieves the expansion and extension of the enterprise chain,not only absorbing high-quality medical resources,adjusting the product structure,but also promoting the expansion of marketing channels and business scale,enhancing the synergies of enterprises.Based on the above research results,this paper recommends that:(1)enterprises need to choose the appropriate model and path according to their own situation,and balance the advantages and disadvantages.(2)After the integration,enterprises need to improve the whole industry chain system and pay attention to the coordination of resources,markets and technology in order to give full play to synergies.(3)Regulatory departments need to strengthen the pharmaceutical market supervision,to create a level playing field,and protect the pharmaceutical market and the public's basic rights.These proposals have a positive revelation to the pharmaceutical companies that intend to integrate the whole industry chain,and can also provide some theoretical support for the supervision departments to improve the work of the pharmaceutical market system.