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Challenges Posed by Global Strategy in Pharmaceutical Industry

Decent Essays
Challenges posed by Global Strategy in Pharmaceutical Industry Introduction In continuation to the previous designing of global strategy for a pharmaceutical firm, we analyze some of the challenges posed by the value chain disaggregation of the pharmaceutical industry. The Challenges The Cultural Challenge Although R&D has been retained by the large pharmaceutical firms, there has been a continuous decline in the R&D productivity. Controlling R&D is imperative to the success of a Pharmaceutical firm. However, as the pharmaceutical industry is maturing, there are diminishing returns to the R&D investment. Fewer and fewer blockbuster drugs are being discovered and therefore R&D is not the most value adding component in the value…show more content…
There are a number of challenges in for setting up clinical trials and performing biopharmaceutical development. In fact, China has the longest drug application timeline of all Asian countries. Language , culture, infrastructure, regulatory and quality issues are some other challenges in the emerging economies • One Global Policy doesn’t fit all. For example, analyzing Pfizer's R&D centre on the Uncertainty Avoidance Index vs Power Distance Index Model. We can clearly see that each R&D center is in a different cultural quadrant and the same HR, development and organization policies cannot work equally well and yet, the need to collaborate across R&D centers puts the need for standardized procedures and processes. Uncertainty Avoidance Index High Low Power Distance Index High Low US, UK Singapore Germany Japan Solution: Creating autonomous teams that don’t report into the organization but report to the top management. Co-locate with the local biotech ecosystem. Second, give time bound budgets. Challenge from emerging economy As the pharmaceutical giants from US, Germany and Japan take advantage of the knowledge clusters in China, India and Singapore, the domestic firms in these emerging economies also catch up through the knowledge spillovers and human resource poaching. With favorable regulatory environment and government support, emerging
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