The biggest opportunity will be for pharmaceutical companies:
After reviewing the video the biggest opportunity for pharmaceutical companies will be selling generic medications. According to the video generic are the bestselling in the United Sates market. Braded drugs now account for one in four pills. Companies are drifting away from brands supplying individuals with reasonable costing medications.
After reading the "Global pharmaceutical industry” article I found:
• Three out of four pharmaceutical companies are convinced their industry is in the midst of a strategic crisis
• Price and cost pressure, regulatory changes and expiring patents are leading to shrinking margins
• Emerging markets offer the biggest growth opportunities for the pharmaceutical industry – Their market share is set to rise to almost 40% by 2016, albeit with smaller margins
• Pharmaceutical companies are prepared to relocate their administration (44%), R&D (43%) and sales departments (51%) to emerging markets
• Four fundamental product/market constellations are driving strategic realignment of business models
Four strategies for success:
• New products in mature markets
in the past, marketing and sales activities were key for achieving lasting sales growth through innovative solutions. However, more restrictive healthcare policies in many countries and the rising demands of patients are now forcing pharmaceutical companies to focus on developing innovative products that add considerable value for patients. The opinion of experts from the clinical sector plus medical affairs activities are crucial to a product's success.
• Established products in mature markets
Fierce competition and considerable customer price sensitivity in this segment means pharmaceutical companies must manufacture their products in a cost-efficient way to remain profitable. To do so, companies can completely outsource certain functions or relocate them to low-cost countries. Companies that can offer high-quality products at reasonable prices will be successful, but this requires efficient administration, marketing and sales models.
• New products in emerging markets
A growing middle class, improving healthcare and rising income levels in emerging markets is driving up demand, even for more expensive medication. The development of new and innovative products provides considerable growth potential. However, successful market entry is possible only if products meet specific market conditions and patient requirements. To realize this, companies should conduct their medical affairs and R&D activities locally. Furthermore, these companies need a strong local sales organization and to collaborate with regional companies in order to gain effective access to patients willing to pay higher prices.
• Established products in emerging markets
Pharmaceutical companies can use established products to realize scale effects in new markets and enhance their reputation. However, companies need to precisely analyze the requirements and competitive situation of the individual markets in advance. This is because markets such as China are strongly affected by regional differences and require country-specific strategies. As a general rule, pharmaceutical companies need efficient production and sales initiatives to drive their sales and earnings. To do so, collaborating with local…