Strategic Analysis of the Pharmaceutical Industry
STRATEGIC ANALYSIS OF THE WORLD PHARMACEUTICAL INDUSTRY
Dragan Kesič∗
Received: 28. 2. 2007 Case study
Accepted: 9. 7. 2008 UDC 65.01:615
The world pharmaceutical industry has been changing profoundly in the last decade. Intensive globalization, increased competitiveness and the fight for global market shares create new challenges for pharmaceutical companies. Fast globalization definitively reinforces the consolidation of the world pharmaceutical industry. Alliancing in forms of mergers and acquisitions prevail more and more as a strategic orientation for the world pharmaceutical companies. By alliancing, they tend to create strategic synergies in an endeavour to be successful, competitive and capable to continue with further development circles. The pharmaceutical industry in Eastern Europe has been, to a great majority, taken-over by their multi-national peer companies, thus creating completely new managerial challenges. One may forecast that intensive alliancing processes in the world pharmaceutical industry are to continue to form even bigger pharmaceutical concerns and speed up the oligopolization of the global pharmaceutical industry. It can be concluded that strategic management with a dedicated market focus is to play an even more important and especially the highest top priority function in future globalization and consolidation processes of the world pharmaceutical industry.
1. CHARACTERISTICS OF THE WORLD PHARMACEUTICAL INDUSTRY
One may define the main characteristics of the world pharmaceutical industry as follows:
•
increased globalization,
∗ Dr. Dragan Kesič, Assistant Professor, University of Primorska, Faculty of Management Koper, Slovenia, Department of Marketing and International Business, Phone: +386 5 610 20 44, Fax: +386 5 610 20 15, E-mail: dragan.kesic@fm-kp.si 59
Management, Vol. 14, 2009, 1, pp. 59-76
D. Kesič: Strategic analysis of the world pharmaceutical industry
•
changing structure of competition and increased
Dragan Kesič∗
Received: 28. 2. 2007 Case study
Accepted: 9. 7. 2008 UDC 65.01:615
The world pharmaceutical industry has been changing profoundly in the last decade. Intensive globalization, increased competitiveness and the fight for global market shares create new challenges for pharmaceutical companies. Fast globalization definitively reinforces the consolidation of the world pharmaceutical industry. Alliancing in forms of mergers and acquisitions prevail more and more as a strategic orientation for the world pharmaceutical companies. By alliancing, they tend to create strategic synergies in an endeavour to be successful, competitive and capable to continue with further development circles. The pharmaceutical industry in Eastern Europe has been, to a great majority, taken-over by their multi-national peer companies, thus creating completely new managerial challenges. One may forecast that intensive alliancing processes in the world pharmaceutical industry are to continue to form even bigger pharmaceutical concerns and speed up the oligopolization of the global pharmaceutical industry. It can be concluded that strategic management with a dedicated market focus is to play an even more important and especially the highest top priority function in future globalization and consolidation processes of the world pharmaceutical industry.
1. CHARACTERISTICS OF THE WORLD PHARMACEUTICAL INDUSTRY
One may define the main characteristics of the world pharmaceutical industry as follows:
•
increased globalization,
∗ Dr. Dragan Kesič, Assistant Professor, University of Primorska, Faculty of Management Koper, Slovenia, Department of Marketing and International Business, Phone: +386 5 610 20 44, Fax: +386 5 610 20 15, E-mail: dragan.kesic@fm-kp.si 59
Management, Vol. 14, 2009, 1, pp. 59-76
D. Kesič: Strategic analysis of the world pharmaceutical industry
•
changing structure of competition and increased