For all management aspirants, the pharmaceutical industry certainly presents an interesting case study. If the idea is to be successful, the smart way needs to be learnt, from the industry’s majors. A close analysis of the pharmaceutical section is advised, with a look, at not only the policies, but also, on how the results have shaped. To further facilitate a detailed study, a precise introduction to the industry’s tactics and interesting moves is presented below.
An Overview Of The Industry’s Moves
The pharmaceutical industry is earning lots of money. However, one could argue that it is obviously due to the nature of the product traded. Drugs are emergency products required by all in certain circumstances and therefore, the sales levels cannot perhaps go down. However, what must be noted here is that the industry has very subtly converted the requirements. By way of smart marketing campaigns, the drug companies have passed on the more expensive substitutes of the otherwise available cheaper drugs. Medical representatives keep a close interaction with health advisors, who in turn prescribe the more expensive products, as promoted by the MRs to regular patients. These propagated drugs are obviously not very easily available, and are quite expensive. Initially, the MRs passes it on to the health advisor as free samples, thus ensuring faster spread.
Where on the one hand, sales of expensive drugs have been maintained quite high, the expense side has been typically controlled at a lower scale. There are no major innovations taking place and therefore, the corresponding risks, too, have been lowered. What it simply entails is the introduction of close imitations of the already famous drugs. As the drugs thus introduced have no unique feature, they are closely followed by extensive marketing, in the form of lectures and seminars organized at medical schools. Many believe that firms further ensure a positive image by controlling the drug testing exercises, which, of course, are supposed to be independent. The articles published to create public opinion are also monitored.
Furthermore, the industry has created a lobby among the relevant sections like government regulatory authorities, who further ensure that the industry is gifted with an easy pavement head. The pharmaceutical industry, all thanks to the easy conditions, operates more or less like a monopoly, which decides its own price and has exclusive marketing rights.
A Line Of Caution
Intelligent moves yet growing awareness and resentment against increasing prices is beginning to show the adverse effects. Therefore, while analyzing the industry trends, keep an eye out for what could shortly follow, perhaps a major societal outburst against the industry’s moves.