Экономические науки/

 10.Экономика предприятия

 

KIT LESYA

PhD student, Institute for Regional Studies of NAS of Ukraine,

Lviv, Ukraine

 

DEVELOPMENT NETWORK BUSINESS STRUCTURES IN PHARMACEUTICAL INDUSTRY: ADVANTAGES AND DISADVANTAGES

 

Today Ukraine has intensified the process of creating network enterprise structures in various sectors of economic activity. This is primarily a trade, where the development of these structures helps to establish effective linkages between producers and consumers and improving the quality of customer service. Significant place in the structure of business networks occupy entrepreneurial networks pharmaceutical business.

In particular, the Ukrainian market in the pharmaceutical sector of intensive development in the retail pharmacy chains become. Very often there are infrastructure changes retail market, reduces the number of stalls and pharmaceutical items and based on this growing proportion of pharmacies (almost 50%).

Today the network form of retailing is the most rapidly developed and promising, as evidenced by statistics: the estimated proportion of network pharmacies in Ukraine is approximately 60% [1].

Networked pharmacy structure forms a set retail and wholesale companies that under a single trademark and provide a unified system of supply and marketing. It can be either horizontal structure, merging companies operating in the pharmaceutical sector of activity, or vertical, where retailers integrate with wholesalers or manufacturers.

The figure 1 shows the generalized classification pharmacy chains.

Подпись: TYPES OF DEPENDENCE PHARMACY NETWORK BY:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Figure 1. Classification pharmacy chains *

* developed by the author based on [2]

 

As of today in the pharmaceutical industry 75% huge networks valid only within one region, and through the process of regional expansion in network structures is rapid deployment, enabling the development of national operators [3].

An analysis of scientific sources [1, 2, 3] and study the characteristics of pharmacy chains in Ukraine are the main factors that hinder their development, namely:

- sufficiently stiff competition;

- high cost of opening retail outlet;

- lack of legislation;

- lack of real estate and the risks of work in rental premises;

- lack of investment in the pharmaceutical industry;

- the complexity of the implementation and transition to the new formats of trade;

- glut retail outlets;

- the lack of skilled personnel.

Despite the presence of the above problems we develop a network of pharmaceutical business experience of these structures proves their undeniable advantages, which are presented in table 1.

Table 1.

Advantages and disadvantages of pharmacy network

ADVANTAGES

DISADVANTAGES

 

increased trade - reducing costs;

discounts on merchandise from manufacturers and distributors due to the large volume of procurement;

the ability to have an assortment of expensive drugs and diversification through additional pharmaceutical assortment;

• more goods available to consumers through low wholesale prices;

single identity - the formation and maintenance of image;

expanding the range of services;

• simplifying procurement functions and mechanism of delivery of the goods;

• improving product quality by reducing the number of intermediaries;

• high motivation of staff and mobile trainers;

• possibility of a centralized marketing department;

• reducing marketing risks and involving the staff of marketing experts.

inability to make independent decisions;

lack of flexible pricing policy;

• high capital intensity;

• reduced motivation and restriction of rights management;

 lack of prompt response to customers refusing pharmacy in goods;

standard and universal approach in matters concerning the range;

• complexity of control over network pharmacies;

slow adaptation to changes in regional markets.

Given the existing advantages in the development of networked business structures in pharmaceutical and formulated a list of problems we need to step up their development of scientific research in the direction of the effective functioning of these economic entities. Also develop recommendations to improve marketing and management decisions.

Consequently, we can conclude that the formation of pharmacy networks today is a positive trend and sufficiently promising direction in the development of the Ukrainian pharmaceutical market.

 

REFERENCES:

 

1.       Жахалова С.В. Значимые тенденции в розничном звене фармацевтического рынка Украины // Провизор. – 2007. – №15. – С.8-11.

2.       Мнушко З.М. Ключові аспекти становлення та розвитку аптечних мереж на фармацевтичному ринку України // Ефективність використання маркетингу та логістики фармацевтичними організаціями: Матеріали наук.-прак. конф. – Х.: Вид-во НФаУ, 2008. – С.23-27.

3.       Кунда Е. Инфраструктура аптечного рынка часть 1: Украина в целом / Е. Кунда, Е. Кармалита // Е-к Аптека. – 2008. - № 19. – С.82-83.

4.       Дідківська Л.І. Тенденції розвитку роздрібних торговельних мереж та їх вплив на конкурентне середовище // Актуальні проблеми економіки . – 2006. - No8. – С. 119-12.