Phân tích chiến lược kinh doanh thành công của công ty CP dược hậu giang e

Right from the early years, the Company Board of Directors has determined strategy: "to maintain the distribution system, strong investment for production development, expand markets, in

Phân tích chiến lược kinh doanh thành công của công ty CP Dược Hậu Giang

Answer:

I).Introduction about DHG Pharma

Company name: DHG Pharmaceutical Joint-Stock

CompanyAbbreviation: DHG PHARMA

Headquarters: 288 Bis Nguyen Van Cu, An Hoa Ward, Ninh Kieu District, Cantho City

Email:dhgpharma@dhgpharma.com.vn

Website: http://www.dhgpharma.com.vn

The precursor of the DHG Pharma Joint Stock Company was the Factory named: 2/9, established on 02/9/1974 Through the development process with many name changes, date 02.09.2004: The Company renamed of Hau Giang Pharmaceutical Joint Stock Company and officially went into operation with an initial chartered capital of 80 billion VND

Right from the early years, the Company Board of Directors has determined strategy: "to maintain the distribution system, strong investment for production development, expand markets, increase market share, taking the brand and capacity of the foundation"

The results of the re-orientation of business strategy that many consecutive year, the Company achieved high growth targets, product development, increase market share, increase customers, increase income workers, contributing higher on the state budget and become a reputable pharmaceutical brand in Vietnam

After nearly 40 years of development, now, DHG Pharma now recognized as the leading Vietnam pharmaceutical industry Products of the company for many years been selected by consumers as the "Vietnam High Quality Goods" and stand in the "Top 05 Pharmaceutical industry leading" in Vietnam Brands "DHG Pharma" is the consumers voted in the "Top

100 Vietnam leading brand" for 02 consecutive years (2005-2006) by Saigon marketing organization, "top 10 most powerful brands in Vietnam" by Vietnam economic Times organization

To get the results that, in addition to the support of our customers, the preferential policies

of the state, not to mention the proper orientation of the company Board of Directors

II) Analysis of the external and internal environment of DHG Pharma

Company

VISION: “For a more beautiful and healthier life”

MISSION: “DHG Pharma always provides high quality products and services to satisfy the

aspiration for a more beautiful and healthier life.”

II.1 The external environment:

World economic recession, global economic crisis, inflation, interest rates fluctuate constantly created a dark picture for the world economy in general and Vietnam in particular Entering 2014, our country's economy continues to face many difficulties and challenges The financial crisis of some major economies has pushed the world economy into recession, significantly narrowing export markets, capital markets, labor markets and negatively impact many aspects sector - the country's social

II.1.1 Technology factors:

DHG Pharma has invested in plant, machinery and modern standard WHO - GMP, GSP by the Vietnam Drug Administration certification Investment in advanced production line, modern international standards provide sufficient high -quality products Specialization of production systems, optimum exploitation of machinery and equipment, improve production

Besides that, the company also promoted research product market fit, "Taking the difference made remarkable advantages in competition", the company has invested hundreds of billions procurement of machinery and equipment University As a result, hundreds of lotions, pills, tubes, powders are of high quality

And, the company also operates under the quality management system is certified to ISO 9001:2000 standards The plant achieved the standard: WHO GMP / GLP / GSP Laboratories accredited in accordance with ISO / IEC 17025 These are essential to help DHG Pharma firmly on the path of integration into the regional economy and the world

II.1.2 Industry Analysis:

In the current period of development, the issue of health care is also a lot more people interested In recent years the Vietnam increasingly concerned about their health status and

increased spend more for health care services, particularly for pharmaceutical spending Vietnamese pharmaceutical industry development speed of 10% / year growth and impressive

The total amount of people using drugs in 2012, equivalent to U.S $ 3,000,000,000, of which we also show the proportion of drug production in the country has not reached 50%

of demand (new 2012 nearly 48%) Besides that the proportion of imported drugs first 8 months of 2013 was 1.2 billion dollars Consequently, the pharmaceutical industry potential

in Vietnam is very huge, including the opportunity of manufacturing enterprises in particular there are many reputable companies and brands such as DHG pharma

II.1.3: The Dependent factor:

- Sources of imported materials: Currently, the pharmaceutical industry in our

country in general and DHG Pharma rely heavily on imported raw materials, so the pharmaceutical industry Vietnam is experiencing some risks such as: Rate, the volatility of prices raw materials, raw material quality and commercial risks

- Exchange rate risk : Most pharmaceutical companies suffer losses of about

fluctuating exchange rates spike

- Risk of fluctuations in raw material prices , the main raw material imports such as

antibiotics, vitamins, and ingredients of analgesic and antipyretic This is the main cause of the sharp correction in prices are on the market before Vietnam in the past year DHG Pharma main production materials producing a high proportion of production costs (50-60%) More than 80% of pharmaceutical excipients and imported inputs Output prices of products are subject to strict management of state

- Risk of pharmaceutical quality : The Chinese market with cheap goods always

potential risks of poor quality condition But this is a totally risk can be prevented if domestic enterprises control and adhere to the process of quality check for acceptance Aims

to ensure the quality of products before launch On the other hand, beat the competition especially Chinese goods

II.1.4 Competitors:

Vietnam Markets with large populations and domestic production capacity is still limited to being a very attractive market for foreign pharmaceutical companies

Pharmaceutical corporations have big names like Sanofit - Aventis, GKS , Servier, Pfizer, Novatis Group has appeared in Vietnam and completely dominate the domestic market segment as well as specific drugs are penetrating deeper another segment supplements Most of the major pharmaceutical corporations operating in Vietnam in the form of representative offices and authorized for domestic pharmaceutical companies to import goods, used mainly overseas distributors for distribution to retail pharmacies

Foreign pharmaceutical corporations increased market share in Vietnam thanks to the advantages of financial products Strong financial resources have allowed corporations to make higher commissions for hospitals and distributors, as well as enhanced funding for medical schools, scientific conferences

Vietnam Pharmaceutical Companies currently have the big advantage of an extensive distribution system throughout the provinces of the country , market knowledge and customer

II.1.5 Substitute Products:

Currently on the market there are many products on human health care, such as medicinal, herbal medicine, natural products , these drugs are very harsh competition to attract customers with the treatment characteristics and clinical medicine rather popular advertising

II.1.6 Customers

Hospitals, medical facilities, dealers, private pharmacies and drug use is a direct customers directly as well as indirectly by the company

II.1.7 Opportunities:

 Scale up 1.2% of the population, average income per capital increasing from which

to improve the health care needs are increasingly enhanced

 The pharmaceutical industry has high growth rate, on average 10% / year, while domestic enterprises only meet 50% of demand for the product on the market Therefore, expanding the market potential is huge

 Natural disasters, epidemics occur continuously as H1N1, H5N1, AIDS

 Existing customers and potential tends to increase

 Get more preferential policies from the state as tax policy,

II.1.8 Challenges:

 In recent years, the pharmaceutical industry to become one of the industries has a high level of competition Corporations, large pharmaceutical companies in the world

in the Vietnam market and sees this as a potential market On the other hand, the domestic private enterprises launched with large -scale investment Therefore, the level of competition is getting fierce

 Drug prices are a sensitive issue politically and Social Security should be managed closely by the state At the same time prices of medicines is also the focal point of the mass media to the enterprise market as being largely about the price change

 There are many alternative products on the market such as herbal medicine, medicinal, natural products

 The risk of violating intellectual property rights to the formula, how to make drugs The quality of the imported materials are sometimes not ensure quality

II.2: Summary The internal environmental factors:

II.2.1 Strenths

 More than 30 years of experience, always confirm the leading position in the industry

 The product is widely used, high frequency of consumption, in accordance with peculiarities of middle- market and low levels

 There is a strong financial capability, financial structure shows reasonable ability to finance good governance

 Potential major manufacturers and products meet the quality standards in the country

as well as internationally

 The leadership of highly qualified and experienced staff and skilled labor and trained Human Resourses policies salary, bonus well created to help attract and promote the creative spirit of the officers and staff, more interested in the spiritual life of personnel and material

 There are parts market development, brand development and product research and development strengths and promises to grow further in the future

 There are system- wide distribution system particularly retail (OTC) and parts sales business operating effectively

 Culture healthy company generated a sociable and relaxed spirit of promoting creativity and contributions of employees

II.2.2: Weaknesses:

 The company's products have high value, usually generics (have all original ownership) in the high-value product (Product Patents) and only a small proportion

of new development in the research phase development

 High dependence on imported raw materials, raw material costs account for 50% -60% of the cost

 Most senior leaders are elderly and have current training senior officers of the Company are not really good

 Strategy turns developing export markets are looking for new market interest in recent years but not really effective

III) ANALYSIS THE DHG PHARMA’S STATEGIES ARE APPLICATING: III.1: Strategies of development and market expansion:

 With the advantage of financial resources, manufacturing resources, research staff developed a strong market and the suitability of the product for the customer class

So companies are taking advantage of their strengths and needs that drug use is increasing, along with a large amount of potential customers to develop markets and increase its market share and attract customers who are using alternative products

 Expand and improve distribution channels and the exclusive distribution agent Sharply increase investment in export activities particularly the products of member companies manufacture pharmaceuticals

 Increased advertising activities on the mass media and the effects on the quality of the product and promotions cuang as after-sales service of the company to attract

customers, the customers have and are using the product and not the customer uses the product

 Consultation and collaboration with community health organizations active in the national propaganda prevention of disease Through this program has shown the company's responsibility to society is both a great opportunity for the company to expand its market share

 Further promote the introduction of products with the expert physician in the hospital medical facilities through workshops, thematic in order to attract customers who have not used the company's products

 Development of key product lines of the company, creating brand platforms and bring sustainable development to the company Some products have made a name for DHG Phaarma as Hapacol, Egucar, Naturenz, Spiruna, Natto Enzymes

 Expand distribution network across the country and across the developing countries

in the region aimed at expanding consumer market Take advantage of the maximum advantages in developing countries to facilitate strong brand since it entered the market in the region and Africa Currently, DHG Pharma’s products have been exported to some countries in Asia and Africa

 Development of information systems between the dealer and the company to manage the system better agent The development of information systems contribute to the management of inventory issues, product management and customers Providing a service to best serve customers and distributors

 Create attractive incentives and rising to strengthen the relationship between the company and the dealers Evidence was developed to expand market share and increase competitive pressure on other competitors, with the potential and its advantages, DHG Pharma has sales programs, customer care special, ready to assist our customers in difficult times and done many customer cares’s programs directed

at consumers humanlity, from which customers are loyal to the company At the same time attracting customers with outstanding quality and growing This is a measure to increase the value for the distribution agent also increased the company's

interests The relationship between the company, the distributor and the customer will be strengthening day and more sustainable

III.2 Product development stategy:

 DHG Pharma is currently one of the market leading companies in the pharmaceutical industry With over 200 products in circulation, and many of them were very popular However, before the health care requirements of the increasing population in the disaster situation growing epidemic, the problem of drug use would also be very interested Therefore, the issue of research and product development in the pharmaceutical industry are significant issues vital for every company

 The strategy of product development of DHG Pharma is focused on research and development of existing products and increase investment in research, preparation and launch of new products We can say that the product development strategy is a strategy that DHG pharma entirely possible and very necessary throughout the operation Helps increase revenue, market share and brand confirmed its leading position; enhance the competitiveness of the company-especially in the context of integration with powerful opponents at home and abroad

 The company has focused on developing products derived biotechnology, herbal and product development 03 groups: neurological, cardiovascular, diabetes - which is the strength of the product group company

III 3 Diversification strategy:

 Deversification strategy is linked to the form of industry players to raise the status of the DHG Pharma on the market in the context of market competition fierce branches, and associated trends, mergers between companies to take advantage of increased scale With the advantage of a market leading company for many years; have strong financial strength combined with the leadership team has directed and lifelong experience, strong production potential for DHG Pharma- advantage in the negotiation and collaboration with partners The strengthening of cooperation links with companies in the same industry at home and abroad will help to promote the DHG Pharma’s existing strengths and proactively adapt to market challenges - enhancing competitiveness and maintain the leading position of the industry in his country

 With the competition in the country: take advantage of financial resources, production potential and its current status, strengthen cooperation negotiations, merger, purchase of shares of companies in the sector to Date influence and increase its position in the industry

 With foreign competitors: there are many companies, large corporations around the world have been to Vietnam and see it as a potential market Further expansion strategy of DHG Pharma in time to be directed to the domestic market in the region and Africa The foreign company with strengths in financial viability, potential production, research and strong distribution will be formidable competitors in both domestic and overseas markets However DHG Pharma also have the advantage of industry leading position in the country , good leadership team is experienced, widely distributed systems current with thoroughly understanding the local market Take advantage of these strengths, DHG Pharm need to strengthen links and cooperation with foreign partners in the delivery of products, technology absorption and collaborative research and development of new products

III.4 Stategic of Brand Development:

 With the advantage of industry-leading pharmaceutical company veteran with 30 years of financial resources and professional team of market development and brand has created a great brand, reputation and quality Strong brand is an important prerequisite for the development of the company avoid the risk from counterfeit goods, counterfeit goods and also helped the company attract customers from small not replace items used to produce the company's products So company should have a strategy to develop a strong brand

 Regularly participate in the poll brand, prizes and great community activities to promote and create brand reputation for DHG Pharma

 Regular meetings held customers and scientific conferences recently introduced products to customers the company has created an image for the brand much stronger impression on them

III.5 Strategy stable sources of raw materials:

As analyzed above DHG Pharma company depends heavily on imported raw materials Raw material price volatilities recently due to the impact of exchange rate fluctuations, the

price of gold, oil More than 80% of pharmaceutical excipients and imported inputs Meanwhile, output prices of products are subject to strict management of state Therefore, the price of raw materials is a major decision of company revenue So the company has come up with a stable source of strategic materials by the following specific strategies:

 Signing contracts with raw materials suppliers at home and abroad for a period in1 year, so materials will have stability It also agreed on price, product quality, delivery time Avoid the supplier will sell materials to other companies at a higher price in the company's lack of raw materials to production production

 Prepare a functional department for conducting supply forecasting price fluctuations

of raw materials, thereby proactively and quickly import raw materials reserves at the appropriate time, harmony between the elements: raw material prices, exchange rates, opportunity costs, storage costs

References:

1 http://www.dhgpharma.com.vn/dhg/en/investor-relations/annual-report.html: Annual report 2012; 2013

2 www.dhgpharma.com.vn