YunnanBaiyao云南白药战略.pptx

Contents
Introduction
Issue identification
Problem analysis
External
5 force model
PEST
Internal
VRIO
Vertical integration
Diversification
mendations
Introduction
1999-2003
1902-1955
1956-1998
Vertical integration
Research & development anizational restructuring
Establish new strategies
Qu zhanghuan panacea
State-pany
IPO in 1993
Integrate to a group in 1996
Fist step to pany
Problem identification
Should YB diversification into health care products such as toothpaste?
Should YB cooperate with 3M in the area of transdermal products and internalization?
Was it feasible to pursue both?
Threat of new entrants(low):
Economic of scale
Capital inputs
High standard of quality control
Industry rivalry(strong):
panies occupy more than half of the market share
Threat of substitute products(weak):
Healthcare products, medical instrument, limited substitution
Bargain power of suppliers(low):
decentralized upriver market
petition, resources is not scarce
Bargaining power of buyers(high):
Hospitals, wholesalers
Relative high bargaining power due to low differentiation products
Chinese pharmacy Industry analysis
Porter’s five forces model
PEST Analysis
Factors
Political
New standard and medicine work established by the government
Economic
China joined WTO in 2011
Giant pany enter China
Increasing raw material cost
Rising demand especially in the rural market
Social
Strong affinity to herbal medicine
Increasing conscious about environment protection
Tech
Western pharmaceutical methodology introduced into the herbal medicine system
R&D ability is weak
Market development skills
Resource and Capabilities Analysis
Resources
Capabilities
Evaluating
Value-chain approach
VRIO Framework
Resource classification
Firm Resource classification
Tangible resources
°financial advantage: listed on A share market, brought much needed funds (1993)
°corporate governance: pany have standardized operation
° formula and manufacturing processes was listed as a to