China's Pharmaceuticals Industry

Student Name : Liu Sau Ming Laurence Liu

Subject :  6BM503 Strategic Management CW1

Porter’s Diamond of China's Pharmaceuticals Industry Competitiveness

Analysis of China's Pharmaceuticals Industry Competitiveness. According to the theory of national competitive advantage, the degree of possibility of a country’s formation of a competitive advantage is determined by the four factors of interdependence and mutual influence and is influenced by two important factors.

1.Factor Conditions

The four basic elements included in the national competitive advantage theory are production factors; demand conditions; supporting industries and related industries; corporate strategy, structure, and competition. The basic elements interact and interact with each other.

2. Demand Conditions

Divided into primary production factors and advanced production factors. The succession of primary production factors or the generation of private investment and social investment needed are relatively simple. High-level production factors require long-term and complicated inputs to obtain.

3. Firm Strategy, Structure, and Rivalry

Mainly affected by the demand situation in the domestic market, its influence depends on the structure and nature of the buyer. If the domestic market is forward-looking

The demand and discerning buyers will prompt the company to gain an international competitive advantage. In addition, the number of buyers, the growth rate of demand, the scale of demand, and the time of market saturation will also have an impact. China's pharmaceuticals market is further expanding. Due to population growth, old

The aging process has accelerated, the health insurance system has been continuously improved, residents’ ability to pay has increased, and the people’s increasing health needs have gradually been released.

4. Corporate Strategy, Structure and Competitive Corporate Strategy

Fierce domestic competition is the most powerful stimulus for creating and maintaining the national competitive advantage. Fierce competition in the domestic industry is an important condition for the industry to have a competitive advantage and become prosperous.

5. Chance

New inventions, major technological changes, drastic changes in input costs, significant changes in foreign exchange rates, sudden world or regional demands, and wars. Opportunities may interrupt the development process of things and change the competitive advantage of companies.