Development of Methodology of Competitiveness of Russian Pharmacies

In: Business and Management

Submitted By Azaliya93
Words 2351
Pages 10
The Development of Methodology for Assessing Competiveness of the Pharmacies in Kazan, Russia

Azaliya Zaripova

AUBG Fall 2013

I.

Introduction

The transition of a Russian command economy to a free market economy in 1991changed the structure of pharmacies. First of all, some pharmacies became private. Other firms were left under the state control and continued operating at a break-even level. Second, a rapid growth of the pharmaceutical industry in Russia and its availability for the imports from western and eastern companies intensified competition among many producers. Today, an increasing amount of pharmacies is the main reason of increased competition in the Russian pharmaceutical industry. Moreover, an assortment of products has expanded. In 1990s, the new non-traditional types of products became available for customers, such as dietary supplements and homeopathic remedies. A variety of products in pharmacies has increased three times due to an introduction of products-substitutes by different producers. In order to gain a substantial market share and make a profit, pharmacies’ managements invent new marketing and business strategies. (36i6, Medical Portal) To sustain competitive advantage in the industry, a pharmacy has to concentrate on high quality products, provide its customers with clear information about its products, and efficiently manage a sale system. The main reason of company’s inefficient operations is the lack of information about market values of the industry. High volumes of production are not the measure of competitive advantage anymore; other indicators should be created in order to evaluate the company’s competitive advantage. The research of the pharmaceutical industry in Russia is important for investigating the influence of unstable economy on firms’ activities and developing a methodology for complex evaluation of pharmacies’…...

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