Question

In: Operations Management

It is several months later. XYZ's drug ViraGard has been approved not only for Singapore and...

It is several months later. XYZ's drug ViraGard has been approved not only for Singapore and Vietnam, but also for most of the Pacific Rim. We are now in production, but we need a solid a distribution plan.

Management wants us to consider two different strategies: one for more developed economies like Singapore or South Korea; and another for developing economies like Vietnam or the Philippines.

Select one developed economy and one developing economy in the Pacific Rim, choose an appropriate distribution channel for each economy, determine a preferred mode of transportation for each economy, and identify your sales channel for your selected countries.

In justifying your choices to the Director of Marketing, answer these questions: Why did you choose these distribution strategies for your selected countries and their respective economies? What are the benefits of your sales channels?

Solutions

Expert Solution

Ans 1. For developed Country Singapore

Singapore Pharmaceutical Market Outlook to 2022 covers aspects such as pharmaceutical market segment (by Prescription & OTC Drugs, by Patented & Generic Drugs), and competitive landscape of major players. The report concludes with market projection for future and analyst recommendations highlighting the major opportunities and cautions.

Singapore Pharmaceutical market can be characterized by the presence of best-in-class infrastructure, integrated and advanced hubs for pharmaceutical manufacturing and research and access to regional markets and skilled workforce. Singapore Pharmaceutical market has registered an increase in the revenue during the period 2012-2017. Many leading biomedical companies such as AbbVie, Pfizer, Ferring Pharmaceuticals and others have selected Singapore as their global manufacturing base.

Singapore OTC market increased at a double digit CAGR during 2012-2017. The market is driven by increasing number of people taking self-medication. Further, increased focus on R&D efforts has led to better focus on the advancement of innovative over-the-counter and consumer health drugs.

Singapore pharmaceutical market is expected to grow at a single digit CAGR during 2017-2018 driven by universal access to health insurance and world-class biomedical research facilities.

The best in class research and manufacturing infrastructure will continue to attract foreign investment in the country. For instance, Japan's Chugai Pharmaceutical, which operates satellite labs throughout Asia, has plans to invest USD 355 million by 2021, to accelerate its research and development (R&D) capabilities in Singapore.

Key Areas Covered:

1. Research Methodology

2. Singapore Pharmaceutical Market - Executive Summary

3. Singapore Pharmaceutical Ecosystem

4. Singapore Healthcare System

5. Singapore Healthcare Key Metrics

6. Comparative Analysis with Other Asian Countries

7. Regulatory Bodies in Singapore Healthcare System

8. Singapore Pharmaceutical Market

9. Singapore Pharmaceutical Market Segmentation

10. Singapore Pharmaceutical Market Recent Developments & Growth Drivers

11. Singapore Pharmaceutical Market- Restraints

12. Government Regulations for Singapore Pharmaceutical Market

13. New Drug Approvals in Singapore, 2017

14. Singapore Pharmaceutical Market Competition Analysis

15. Singapore Pharmaceutical Market: Future Outlook and Projections

16. Snapshot on Singapore Vitamin and Dietary Supplement Market

17. Snapshot for Singapore Animal Healthcare

18. Snapshot for Singapore Biopharmaceutical Market

19. Singapore Pharmaceutical Market - Analyst Recommendations

For a developing Country Vietnam

Vietnam is a fast growing economy in the Asian region with a significantly high population (over 92 million in 2015). Although still expanding (about 1.1% on average during 2000-2015), the Vietnamese population is considered to be entering the ageing stage at a very high rate. The rapid expansion of the middle-income urban class and the ageing people ratio have dramatically pushed up the demand for healthcare goods, particularly in terms of pharmaceutical products.

Since the early 1990s the government has addressed the necessities of rising demand for healthcare products by formulating a series of policies aimed at promoting the development of the pharmaceutical industry. However, the implementation of such policies does not seem to have been completely efficient given that the country still needs to import up to 90% of its pharmaceutical consumption.

This aims to explore the development of the pharmaceutical industry during the years 1990-2015 and to identify a series of weaknesses in the government promotion of the industry. Future developments will also be discussed on how the Vietnamese pharmaceutical industry could increase its participation in the regional supply chain, which is currently being dominated by big players like India and China.

“Pharmaceutical Industry in Vietnam: Sluggish Sector in a Growing Market, Antonio Angelino”, Do Ta Khanh, Nguyen An Ha and Tuan Pham, 2017, Int. J. Environ. Res. Public Health 2017 Vietnamese drug manufacturers are able to meet half of the total medicines market demand, while imports cover the remaining half.3 In addition, approximately 60% of pharmaceutical end products, 90% of active pharmaceutical ingredients, and most raw materials for the production of pharmaceuticals are currently imported4 .

In recent years, the authorities have stepped up their efforts to reduce the country's reliance on imports. As part of their 2020 strategy, authorities intend to have 80% of domestic pharmaceutical demand met by local drug manufacturers through measures such as tendering preferences.


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