The economic significance of the pharmaceutical wholesaler in South Africa's health care industry
The purpose of this research paper is to examine and evaluate the economic significance of the pharmaceutical wholesaler in South Africa’s health care industry. The pharmaceutical wholesaler experienced several challenges over the last decade. These challenges originated from changes in the comp...
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| Format: | Others |
| Language: | en |
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2009
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| Online Access: | http://hdl.handle.net/10500/220 |
| Summary: | The purpose of this research paper is to examine and evaluate the economic
significance of the pharmaceutical wholesaler in South Africa’s health care
industry.
The pharmaceutical wholesaler experienced several challenges over the last
decade. These challenges originated from changes in the competitive
environment of the industry and more recent changes in the regulatory
environment brought on by the State in its attempts to make medicine more
accessible to the South African public. The wholesaler was forced by these
changes to adapt its business model drastically in order to remain
competitive. Historically the wholesaler made its profits by purchasing bulk at
a discount, passing a fraction of the discount to its customers and adding a
mark-up to the purchase price. It was now forced to abandon the discount
and mark-up scheme and distribute medicines by negotiating a fee for the
services it renders. Wholesalers now not only have to compete between
themselves but also with distributors on the same basis - by negotiating
logistics fees with pharmaceutical manufacturers. Operating efficiency and
customer service have become essential ingredients for the wholesaler in its
quest to remain competitive. === Graduate School of Business Leadership === MBL |
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