Academic journal article ASBM Journal of Management

Achievement of Leadership Status despite Late Entry in a Competitive Market: A Study of Mankind Pharma

Academic journal article ASBM Journal of Management

Achievement of Leadership Status despite Late Entry in a Competitive Market: A Study of Mankind Pharma

Article excerpt

Introduction

Market oriented appropriate strategy is the key to success in any business and more so in a highly competitive market condition like the Indian Pharmaceutical Market. To develop any strategy one would require to have detailed knowledge about the market dynamics. In pharmaceutical business, although patients are the ultimate beneficiary and consumers, the doctors play a significant role in deciding what medicines the patients should consume. In turn the patient purchases the prescribed medicines from the retail chemist stores and sales for the prescribed brands are generated - this is the primary process through which pharmaceutical sale in India is largely generated. Therefore, one can conclude that doctors' prescription is the key determinant for pharmaceuticals sales generation. Such prescription can reflect the mind of the medical practitioner and explain what the different doctor segments expect from different market geographies or market sectors (Ohmae, K. 2002).

Objective

In this study an effort has been made to establish that systematic analysis of doctors' prescription can provide important strategic insights to attain market leadership despite late entry in the competitive pharmaceutical market in India.

Literature Review

Prescription Research as a market research tool is a quantitative information which can be systematically analysed, and interpreted as a qualitative marketing research feedback for the use of strategic marketing purpose (Kotier, P. 2003).

One of the recent concepts on business strategy suggests that one should not compete with the rivals - rather make them irrelevant (W. Chan Kim et. al., 2005). The concept indeed appears to be a unique proposition in today's world of headto-head competition in search of sustained, profitable growth. The concept further states that there are two types of strategies, the 'Red Ocean' and the 'Blue Ocean'. The characteristics of both can be explained as:

While it is true that there cannot be a risk-less strategy (Inga S. Baird et. ah, 1990), the issue is how can companies systematically maximise the opportunities and minimise the risks of formulating and executing a blue ocean strategy. To do so, the strategist has to first segregate the doable and non-doable parameters of the strategy (Swami Gambhirananda, 2003), and then search the risk, plan the risk, scale the risk, and finally organise the strategy for implementation.

Specifically, top management risk taking and the firm-level capability of market responsiveness are hypothesized to be associated with market pioneering (Garrett, R.P. et. ah, 2009). Strategy is not only just planning but also execution; one has to build the execution into the strategy for effective implementation of the strategy. Strategic learning self efficacy makes market pioneering more palatable to risk-averse top managers who might not otherwise engage in pioneering.

Fundamentally, the blue ocean strategy suggests that one must reorient the strategic focus from the so called competitor based strategies to alternatives, from just customers to noncustomers or probable-customers. Instead of expecting to get a share of the existing market, one must look for defining a new market.

If we take the example of the present pharmaceutical marketing in India, the strategic way of functioning is more similar to the Red Ocean than the Blue Ocean. Since the healthcare industry has been growing at a fast rate continuously, over the years, most players in the market have been growing financially - sailing with the growth current of the industry. In future, in post IPR market conditions this might not always happen. One would require marketing oriented growth to grow financially by creating newer market opportunities for growth. In this context, developing the rural healthcare market in India could be a good case for Blue Ocean strategy implementation.

New brands play a crucial role in determining the organisation's long-term performance, and developments in the business environment make the industry dynamic. …

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