A Study of Market Structure, Enterprises’ Conduct and Operation Performance of Pharmaceutical Industry in Taiwan-The Case Study of Yung Shin Pharm. Ind. Co. Ltd

• Main Authors: Yea-Chi Peng, 彭雅琪
• Other Authors: Ruey-Jaw Teng
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/49405696992644134175

碩士 === 中華大學 === 企業管理學系碩士班 === 99 === The budget of health care is expanding worldwide, not only in developed countries but also in developing countries. We need the pharmaceutical industry providing solutions to maintain our health. Therefore, government, health insurance companies, individuals all faces greater pressure to increase investment in the pharmaceutical industry. Above are the viewpoints of Patrick Dixon, president of the pharmaceutical industry consulting firm ACET (AIDS Care Education Training). The discovery of innovative medicine has helped millions of patients from infancy to old age. Let them live longer, healthier, happier and with more productivity. Life expectancy is mainly through medicine research and manufacturing, etc. to conquer diseases. However, modern medicine is not only to save and improve the life of patients. It also can save money, because the health improvement can avoid us hospitalizing or staying in nursing home, etc. to save our health care expenses. In year of 2008, the global market value of Pharmaceutical industry was about USD 773.1 billion. 82.3% pharmaceutical market was in North America, Europe and Japan. It was only 11.7% pharmaceutical market in Asia, Africa and Australia, where have 68% population of the world. In year of 2010, the API (Active Pharmaceutical Ingredients), medicine and Chinese herbal medicine of Taiwan Pharmaceutical production value are NTD15.9 billion, NTD43.05 billion and NTD6.77 billion respectively. It is a total of NTD65.72 billion. The purposes of this study are to research the current condition of Taiwan pharmaceutical industry and analyze the market structure, enterprises’ conduct and operation performance through Mason-Bain’s “Structure-Conduct-Performance” theory. This study will (1) apply CR4(Four-firm concentration ratio) and HHI (Herfindahl-Hirschman Index) as the measures of market concentration (2) utilize SWOT analysis, 4p and “five competitive forces” to research enterprises’ conduct and competition strategy (3) from financial point of view, use the performance evaluation indicators to measure the performance of enterprises, and to explore the operation condition of pharmaceutical industry in Taiwan (4) through case study and expert interviews, hope to have further understanding of operation principle and competitiveness of the enterprises, as well as the future development of this industry. The conclusions of the research are as follows: 1. It is a low concentrated market of Taiwan pharmaceutical industry by the calculation of market concentration. And the market concentration has slightly decreased gradually. 2. From the enterprises’ conduct, the pharmaceutical industry takes the overdue patent medicines and health food as current target market in short-term and takes generic drugs as target market in the long term. 3. In Taiwan, the output of pharmaceutical industry is increasing year by year and higher than manufacturing industry. It was 4.76% growth in 2010. 4. Those affecting the operation performance of pharmaceutical industry in Taiwan are R&D capabilities, marketing capabilities as well as the policies and regulations of government. 5. The case company has the economic scale of quantity. Recently, the quality of products is much more recognized by consumers, due to the diversification and the image establishment of brand differentiation. It maintains the advantage of competition.