A Study of the modernization business strategy in traditional Chinese medicine stores

• Main Authors: Feng-hung Kuo, 郭峯宏
• Other Authors: Scott,S.C.Lung Ph.D
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/01437390761975702003

碩士 === 國立高雄第一科技大學 === 企業管理研究所 === 100 === Taiwan is going through a transformation. The transformed stage of our society is beginning with an agricultural and industrial society to a progress science- teched community, and it even evolves into a knowledge-based one. The innovation is constantly happening in industries. For its high value-added output, convenience store replaces Taiwanese traditional shop—Ganma Dian. An old type western pharmacy is being substituted for newly chain pharmacy due to the fact that the latter one has diversified products, and multi-compound business strategy. Traditional restaurant not only has been supplanted in Taiwan by chain ones that are full of streets but also altered the diet culture of Taiwan. Nevertheless, Chinese medicine store has its unique cultural and historical background so that it cannot keep up with the shift of society. According to the researcher Hue-Lin Liao(2004), Yung-Hun Chang (2005) and Hue-Mei Lee (2000), it demonstrates that Chinese medicine store owners realize the difficulties and crisis itself. They do not know how to overcome although they are conscious of the problem.The paper attempts to explain the transition of Chinese medicine store necessarily according to analytical documents. We will be going through the history of Taiwan Chinese medicine stores, and an inception of national health insurance, the revised Pharmaceutical Affairs Act, the Regulation of Medical Care to evolutionary process of western pharmacy. Moreover, in order to provide the reference to Chinese medicine industry in the road to modernized management, the factors to the transition of Chinese medicine stores and business strategies will be discovered in the research. The resource of the project is based on database of pharmacists in the year of 2004 to 2011 revealed by the Department of Health. Exploratory research is the methodology of the paper, and being accompanied with participant observation and in-depth interview. As a result, plenty of primary data and more of wholesaler’s thoughts and idea have been obtained. In addition, collected data is acquired by engaging in case study throughout cases of Chinese medicine stores modernization simulated by the government and wholesalers. Critical elements in successful modernized transition are generalized; for instant, business should be chained, convenient, and compounded. Additionally, two to three evaluations involved to anterior elements which are found that： (1) As government regulation shift, Chinese medicine health care has a great deal of market being shared. If there is no transition at Chinese medicine industry, consumers’ demand will not be met. Thus, elimination will happen to the business. (2) The case studies show that the crucial difficulty for industrial transition is capital scale if the industry is vigorously turning to entire electronic management. If the business is rather gradual progress, the lack of principles to staff training is the obstacle to industrial transformation. (3) For highly competitive among Chinese medicine business and diverse one, it has to develop unique and differentiated service, or market segregation in modernized management. Furthermore, adopting horizontal alliance in business is the path to expand market economy’s category and scale, and it even brings Chinese medicine stores to be a modernized business mode. Eventually, along with the second phase of the Plan of Establishing Medication Safety Environment of Chinese Medicine promoted by the Department of Health, the recommendations to the plan are the followings： reinforcing the role of government, establishing a single dedicated agency, and assisting wholesaler by building sustainable academic institutions.