Market Entry and Dynamics in China's Pharmaceutical Sector: An Ecosystem Perspective

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Volume Title

School of Science | Master's thesis

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Date

2024-10-28

Department

Major/Subject

Strategy

Mcode

Degree programme

Master's Programme in Industrial Engineering and Management

Language

en

Pages

94

Series

Abstract

This thesis analyses the pharmaceutical ecosystem in China, focusing on market entry and expansion by foreign companies. The thesis adopts an ecosystem approach for getting a more comprehensive overview of the industry. The empirical study uses a qualitative methodology, leveraging semi-structured and unstructured interviews with industry professionals for identifying key stakeholders, their dynamics and the structure of the ecosystem. This thesis finds that the Chinese pharmaceutical ecosystem is characterized by a complex regulatory environment, fragmentation of markets across the country and strong governmental influence. The key stakeholders of the pharmaceutical ecosystem, have a crucial role for the ecosystem functioning. The structure of the ecosystem in terms of commercialization of pharmaceutical products is divided into regulation, market access and distribution segments which describes the process of getting a pharmaceutical product into the country. For foreign companies, the main challenges relate to political uncertainties, cultural barriers and dynamic regulatory landscape. However, there are opportunities in demographic changes, government health initiatives and the growing market potential of OTC products and e-commerce. This thesis suggests that for succeeding in the Chinese pharmaceutical industry requires a deep understanding of the ecosystem, adaptability to local conditions, and taking a strategic position in the value chain. The thesis also provides a framework for companies to assess and approach key aspects when planning to enter and expand in China.

Description

Supervisor

Schmidt, Jens

Thesis advisor

Rytilä, Paula

Keywords

China, ecosystem, pharmaceutical ecosystem, pharmaceutical industry, market entry, market expansion

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202412198046

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[dipl] Perustieteiden korkeakoulu / SCI