Multi-case study on business models in the pharmaceutical information industry

Abstract

An integral part of a modern healthcare system involves storing, transferring, and applying pharmaceutical information and data. A wide range of stakeholders in the healthcare sector, including hospitals, pharmacies, physicians, patients, insurance companies, and pharmaceutical manufacturers, need to access high-quality and user-friendly sources of information related to pharmaceuticals for various needs and purposes. Despite the rise of new digital pharmaceutical database products and services, there is little literature on the industry, particularly from a business strategy perspective. More research needs to be conducted to gain a deeper understanding of the industry dynamics. This thesis is a multi-case study that aims to understand the core features of business models used in the pharmaceutical information industry and simultaneously identify key actors in the pharmaceutical information industry in different markets. Additionally, this thesis proposes preliminary market entry strategies in selected markets for the Finnish pharmaceutical information company Lääketietokeskus (Pharmaceutical Information Center). A theoretical framework was created to collect and analyze the data systematically. The data collection method was improved iteratively, with three cases selected for a pilot phase. The unit of analysis was determined to be an actor (i.e., company or other organization) operating in the pharmaceutical information industry. Ultimately, nine cases were selected through non-random sampling from the following markets: the United Kingdom, Germany, the USA, Switzerland, Netherlands, Portugal/Spain, and global. Individual and cross-case analyses were used to find insights from the data. Based on the analyses, four generalized business models and descriptions of the companies using these models in the industry were formulated: 1) global giant model, 2) advertisement model, 3) high-quality local model, and 4) outdated governmental model. Additionally, preliminary market entry strategies were created for two attractive markets, Netherlands and Spain. For both markets, entry through licensing is recommended as the most suitable entry mode as it allows an easy, reliable, and fast method of distributing pharmaceutical information software in a foreign environment. However, more detailed market-specific research must be conducted to verify the market entry strategy recommendations. This study makes both academic and practical contributions. This study is explorative by nature and creates a framework to comprehend business models in an industry where comprehensive previous literature does not exist. Additionally, this study can help managers and other industry practitioners understand the specific strengths and weaknesses related to the competitors and their business models. The limitations of this study include low number of cases, an imperfect data collection process, and the vagueness of the market entry strategies.