Tải bản đầy đủ - 0 (trang)
Image 2.3: Some images of the Company’s manufacturing equipments

Image 2.3: Some images of the Company’s manufacturing equipments

Tải bản đầy đủ - 0trang

Capstone Project Report



comparison with Domesco, Imexpharm, and Sanofi-Arventis. For this reason, we have to

put more efforts in this area in the future.

2.3 External factors analysis:

2.3.1 Macroeconomic environment analysis

According to the statistics of Ministry of Planning and Investment, GDP in 2010

increases 6.5%. And as it is stated in the Objectives of Central Committee of Vietnamese

Communist Party, from 2010 to 2015, GDP growth rate will reach 7-7.5%, GDP per

capita in 2015 will be 2000 USD, increasing 1,7 times of 2010; productivity in 2015 will

double from that of 2010. These goals will provide us ground to predict the development

of Vietnam economy from now to 2015.

The economic development will bring about the increase of needs in taking care of health

which will influence Pharmaceutical Industry as well as business activities of

MEKOPHAR.

Even though export activities are more favorable since currency rate of USD/ VND is

adjusted more than 2%, MEKOPHAR faces difficulties as 80% of raw materials are

imported.

2.3.1.1 Political, Legal, Cultural and Social Factors

Representatives from many pharmaceutical companies have mentioned the inadequacy in

governmental regulations of marketing expenses. While foreign pharmaceutical

companies can spend 30% of revenue for advertising, domestic pharmaceutical

companies can spend only 10%, if exceed, companies will be requested to pay more

taxes. Advertising has been proved to be one of the essential elements for success.

Nonetheless, governmental regulations of advertising expenses have erected barriers for

companies, leading to the lack of interest in domestic medicines in the market.

According to the detailed commitment to join WTO, Vietnam has to impose 0%-5% tax

instead of 0%- 10% previously for pharmaceutical products. The average tax rate will be

2.5% after 5 years from official joining date (in 2012, Vietnam will become an official

member of WTO). On the other hand, the opening market will reinforce the commercial

presence of foreign companies who have stronger potential with brands. Those

companies together with the remove of barriers will be a great challenge to domestic

pharmaceutical industry, including MEKOPHAR.

Page | 25

Group 4- C0110



Capstone Project Report



To face with this situation, Vice Prime Minister has requested Ministry of Public Health

to implement preferential financial program for domestic pharmaceutical producers,

make forecast report about market, use more domestic medicines and take full advantage

of equipment, domestic raw materials instead of preferring foreign products. These

actions will be driving forces promoting Domestic Pharmaceutical industry to the

orientation of 2020.

In addition, in the future, Government and Ministry of Public Health will assist domestic

pharmaceutical companies in adopting more favorable policies to create best

environment for “3 stakeholders”: Companies- Scientist-Farmers to produce highly

effective and sustainable medicines, to build closed distribution channels, to satisfy the

needs of people. Reducing the dependence on imported raw materials will open up new

developmental opportunities for Pharmaceutical Industry. (90% of raw materials are

imported)

A majority of Vietnamese are not confident in domestic medicines. It’s their perception

that “foreign medicines are expensive, they must be good”. Most of them don’t know that

the production technology in Vietnam has been updated, more or less the same as other

countries in the world.

Another important factor is the limited knowledge of consumers about medicines. If the

medicines have the same ingredients but different medicine’s names from prescription,

they will not buy.

It’s the case that doctors prefer to prescribe patients with foreign medicines as they are

paid more commissions. This tendency will cause many difficulties for Pharmaceutical

Industry in general and for MEKOPHAR in particular.

In the modern life with rapid economic development, people are more concerned about

their health since they are still strong. Following the belief “Prevention is better than

cure”, developed countries have a trend of preferring dietary supplements to medicines.

More and more women care about their beauty. Consequently, when income increases,

life gets busier, to save time and take care of health, beauty, prevent diseases, people start

to use dietary supplements. This is the opportunity for pharmaceutical companies to meet

the demands of customers. MEKOPHAR is investing a big amount of money in R&D for

Page | 26

Group 4- C0110



Capstone Project Report



dietary supplements and pharmaceutical cosmetics. Thanks to smooth distribution

system, our company can take full advantage of this opportunity.

2.3.1.2 Natural Factors

Vietnam is located near equators with high temperature and humidity giving good

conditions for flora to grow in various kinds. Plants and fungus are a rich source of raw

materials for Pharmaceutical industry in the future.

With the rapid economic development, especially industrial development, a massive

amount of waste has been dumped into the environment such as: residential waste,

industrial waste. These wastes have negatively contaminated the air. The pollution along

with climate changes will become a threat to human lives and health. A number of

diseases related to respiration, heart, digestion, etc will be worsened. This is the

foundation to develop the Pharmaceutical industry in the future.

2.3.1.2 Demographic Factors

Vietnam’s population has 83 million people, ranked the 13 th in the world. As lives have

been improved, there has been a considerable increase in medical services, health care

services. This has given chances to expand the distribution system of MEKOPHAR

throughout Vietnam. In his speech, Vice Prime Minister expressed that Vietnam’s

population 100 million people and ASEAN population 500-600 million people by 2020

will become potential markets to develop pharmaceutical industry, oriented towards

exported products. AS being a top company in the industry, MEKOPHAR can take best

use of this opportunity.

Moreover, in Vietnam, elderly population (more than 60 years old, 6.3 million people,

making up 7.5% Vietnam population) tends to increase thanks to the improved living

conditions and medical services. For the elder, health is crucial and needs enough care.

Understanding this segment of the elder will be a good opportunity for MEKOPHAR to

research and develop new suitable products attached with other health care services.

2.3.1.4 Technological Factors:

From 2001 to 2009, Science and Technology Department has been revolutionized. The

Fund for science and technology development was founded with the aim of supporting

companies in implementing domestic research, research results with commercial values,

promoting applications of science research, developing technology, transferring

Page | 27

Group 4- C0110



Capstone Project Report



technology, upgrade technology, etc. This is the good environment for the industry to

constantly update new technology.

In recent years, the integration of the economy into the world has brought chances for

pharmaceutical industry to achieve breakthrough. Regarding production, new technology

has been introduced and implemented (lyophilization, long-effect medicines, etc). This is

the evolvement for pharmaceutical companies in general and for MEKOPHAR in

particular as we have access to modern pharmaceutical production technology in the

world).

However, the domestic pharmaceutical industry faces a great deal of difficulties such as:

lack of development investment, lack of qualified staff, poor equipment. These

difficulties are a challenge for Vietnamese companies as a majority of pharmaceutical

companies are small and medium sized enterprises (SMEs) including MEKOPHAR

2.3.2 Industrial environment analysis and development directions until 2015:

 Characteristics of the industry

- Pharmaceutical industry has high growth rate. From 2000 to 2009, the average

growth rate is 16% and forecast to continue upward trend.

- The two main distribution channels are treatment system (hospitals, clinics, etc) and

commercial system (branches, stores, agencies, distributors, drug stores). The

domestic distribution channels lack of professionalism. The distribution system of

many companies is overlapped and not effective.

- There are many counterfeit medicines in the market. According to a report of

Interpol 2008, Vietnam has 406 counterfeit medicines, ranked 2 nd in South East Asian

nations.

- According to the evaluation of WHO, Vietnamese pharmaceutical industry is

developing. For example, from 2000 to 2009, medical expense of a typical person

increase considerably, especially for medicines with the increase from 5.11usd/per

person/per year (2000) to 19.3 USD (2009) account for 1.6% of GDP. It is predicted

that by 2010 medical expenses will continue increasing to 24 USD/per person/per

year. In reality, even though there has been growth in medical expenses, the average

medical expenses of Vietnam are still low in comparison with the world average

Page | 28

Group 4- C0110



Capstone Project Report



medical expense 40 USD/per person/ per year. Additionally, 90% of raw materials are

imported.

From general overview, pharmaceutical industry is under low-average development

and the size of the industry is small.

Based on the forecast of BMI, pharmaceutical industry can reach 6.1 billion USD by

2019 and Vietnam population will increase from 86.8 million (2008) to more than 100

million (2019). The increase in population and improved living standards will result

in the rising needs of medicines. The government targets that by 2010, domestic

medicine will satisfy 60% of needs and by 2015 meet 70% of needs. These increases

and governmental targets offer convenient conditions for development of

Pharmaceutical industry.

After gaining more knowledge about characteristics of the industry, we need to

analyze about customers, suppliers and substitute products.

 Direction for developments:

According to the evaluation of WHO, Vietnamese pharmaceutical industry is

developing. For example, from 2000 to 2009, medical expense of a typical person

increase considerably, especially for medicines with the increase from 5,11usd/per

person/per year (2000) to 19.3 USD (2009) account for 1.6% of GDP. It is predicted

that by 2010 medical expenses will continue increasing to 24 USD/per person/per

year. In reality, even though there has been growth in medical expenses, the average

medical expenses of Vietnam are still low in comparison with the world average

medical expense 40 USD/per person/ per year. Additionally, 90% of raw materials are

imported.

 From general overview, pharmaceutical industry is under low-average

development and the size of the industry is small.

In the future, Vietnamese pharmaceutical industry will possess a lot of potentials to

develop for the following reasons. First, Vietnam has highest GDP growth rate and

GDP per capita increases substantially. Second, based on the forecast of BMI,

pharmaceutical industry can reach 6.1 billion USD by 2019 and Vietnam population

will increase from 86,8 million (2008) to more than 100 million (2019). The increase

Page | 29

Group 4- C0110



Capstone Project Report



in population and improved living standards will result in the rising needs of

medicines. The government targets that by 2010, domestic medicine will satisfy 60%

of needs and by 2015 meet 70% of needs. These increases and governmental targets

offer convenient conditions for development of Pharmaceutical industry.

Young population will get older, life-span will widen and BIM forecasts that and

Vietnam population will increase from 86.8 million (2008) to more than 100 million

(2019). These factors will reinforce the needs and expenditure for medicines.

2.3.2.1 Customers

Customers of pharmaceutical industry are divided into two segments

2.3.2.1.1 Indirect customers

This segment includes domestic and foreign end users. There are two main groups:

Indirect foreign customers and indirect domestic customers.

 Indirect foreign customers:

In general, market share of Vietnamese pharmacy is small, mostly to Japan and East

Europe. Nonetheless, according to the forecast of RNCOS, growth rate of Vietnamese

pharmaceutical industry will be 12% to 15% from 2009 to 2012 while the growth rate

of world pharmaceutical industry will be 6% to 8%. The need for medicines in Asian

Pacific and Latin American nations is going to increase significantly due to big

population, GPD per capita raise. Therefore, needs for export medicines will be

higher. In the future, this group will develop more.

 Characteristics of indirect foreign customers (European countries):

-



Requirements about quality and safety upon usage.



-



Interest in brand



With these characteristics, pharmaceutical industry generally and MEKOPHAR

particularly have to improve promoting brand, exerting tighter quality control, initiate

strategies for quality assurance.

 Indirect domestic customers:

As above analysis, in recent years, Vietnam has witnessed the increase in medical

expenses, especially in medicines. Therefore, it can be inferred that indirect domestic

customers will have a lot of potentials.

Page | 30

Group 4- C0110



Capstone Project Report



+ Characteristics of indirect domestic customers:

-



A majority of Vietnamese don’t trust domestic medicines. They have the

perception that “foreign medicines are expensive, they must be good”



-



A majority of population resides in countryside, they have low living standards.

Therefore, they have demands for cheap medicines.



-



They have a habit of buying medicines basing on personal experiences, advices

from relatives and drug seller (45% of them buy medicines basing on personal

experiences).



-



As living standards are improved and health is more and more concerned, people

have more requirements about quality and the prestige of brand.



Indirect domestic customers group doesn’t pressure the industry since medicines are a

necessity. There are no substitute products and no price bargain.

2.3.2.1.1 Direct customers:

This is the target customers of Pharmaceutical industry. The needs of buying are based

on the needs of indirect customers. Direct customers are divided into 2 smaller

groups:

-



Group 1: Hospitals, clinics.



-



Group 2: Branches, agencies, distributors, drug stores (Pharmaceutical export and

import companies, commercial companies, retailers…)



+ Characteristics of direct customers:

-



Because medicines are directly affected health and lives of users, the products

must have high-quality and prestige.



-



They expect for high discounts.



-



They require distribution capacity in a timely manner according to the signed

contract.

This group of customers can put pressure on the industry because:



 They buy in bulk, account for high proportion in total revenues. They are the ones who

deliver finished products to end-users.

 They have enough information about needs, prices, and characteristics of consumers.



Page | 31

Group 4- C0110



Capstone Project Report



With this type of customers, pharmaceutical companies in general and MEKOPHAR in

particular must build business prestige to create mutual benefits.

2.3.2.2 Suppliers:

Suppliers of Pharmaceutical industry include: raw material suppliers, labor suppliers.

- In the pharmaceutical industry, labor plays an important role because the industry

requires highly skilled and experienced staff. However, in reality, we suffer from the

lack of skilled staff. “ According to the report of Pharmaceutical Department, at the end

of 2009, the rate of pharmacist in Vietnam is 1,5 pharmacist over 100000 people”

- Sources of raw materials for pharmaceutical industry: most of raw materials used are

imported from Austria, Italia, Holland, India, and China. India and China have the

biggest volume of imported raw materials into Vietnam, 25% and 21% respectively

(2008). Because more than 90% of raw materials are imported, domestic pharmaceutical

companies are heavily dependent on foreign suppliers and may face difficulties in case

of increasing prices.

2.3.2.3 Substitute products:

The pressure from substitute products in the industry is negligible. As needs for

medicines are essential, there are no substitutes.

2.3.3 Competitor analysis:

2.3.3.1 Factors determining the competitiveness in the industry:



Pharmaceutical industry is highly competitive because:

There are a lot of players in the market (By July 2009, Vietnam has 171 medicine

producers, 93 of them produce western medicines, account for 54.4% and 78 produce

eastern medicines, 6 produces vaccine, medical equipment).

After 20 years of development in competitive environment, pharmaceutical market has

operated towards market mechanism with its own characteristics of special business.

This means that regulations and rules are gradually effective in controlling the market.

Nowadays, companies are paying more attention to international standards and

attempting to increase competitiveness to survive and develop. By July 2009, there are

53 pharmaceutical companies satisfying GMP WHO standard (57%) and 24

pharmaceutical companies satisfying GMP ASEAN. According to the commitment upon

joining WTO, by the end of 2010, pharmaceutical companies need to meet GMP-WHO

Page | 32

Group 4- C0110



Capstone Project Report



standards or else they have to stop operating. Therefore, many Vietnamese

pharmaceutical companies are trying to meet standards and increasing its

competitiveness.

Domestic pharmaceutical companies can produce common medicines, competing in

domestic market. Nevertheless, when Vietnam officially became WTO member, foreign

companies will enter domestic markets and there are low protection for domestic

pharmaceutical market (the distribution area hasn’t been opened to for foreign

companies). When protection is removed, the pharmaceutical market will become more

severe. At that time, domestic pharmaceutical will have to face with many multinational

corporations with updated technology and high productivity.





After knowing more about competitiveness in the industry, we will analyze some



of our competitors to assess their competitiveness.

2.3.3.2 Content of competitor analysis

 Identify competitors.

Now, Vietnamese pharmaceutical companies mainly cater the needs of domestic

markets. Therefore, to identify competitors, we will see the market share of domestic

pharmaceutical companies. According to the Vietnam Pharmaceutical Management

Bureau, MEKOPHAR is recognized as the top company in 10 top companies with

highest revenues in Pharmaceutical industry. Competitors of MEKOPHAR in the

industry are all the companies doing the same pharmaceutical business such as

HauGiang Pharmaceutical Company, Domesco, Imexpharm, Traphaco, and OPC, etc.

Domesco ranked 2nd with domestic market share of 4.67% and Imexpharm ranked 3 rd

with domestic market share of 3.72% (Report of Pharmaceutical Management Bureau in

the meeting, statistics forecast by 2009). We don’t give too much attention to HauGiang

Pharmaceutical Company, Traphaco, and OPC as they are producing finished products

from drugs. Two most important domestic competitors are Domesco and Imexpharm.

Besides, there are some foreign competitors such as: Sanofi-Aventis (France), GSK

(England), Servier (France), etc. In this report, we choose to analyze Sanofi-Aventis as

in Vietnam, Sanofi- Aventis is the number one company in the market, top brand listed



Page | 33

Group 4- C0110



Capstone Project Report



in prescription, or non-prescription and vaccines. Sanofi-Aventis has some similar

products with infusions products and new kind of antibiotics of MEKOPHAR.

 Competitor overview:

+ Sanofi Aventis Vietnam:

In Vietnam, Sanofi Aventis is the number one pharmaceutical company with diverse

products, consulting and supporting customer services as well as its contribution to the

development of the industry.

Sanofi – Aventis Vietnam has more than 150 products including prescription ones, nonprescription ones, and vaccines. They have some top products in the treatment of heart,

cancer, mental disorder, diabetes, internal medicines and vaccines.

Sanofi-Aventis Vietnam has done very well in supporting customers by opening

customer service centers (2002) to assist and directly consult customers. At the moment,

Sanofi is expanding their partner networks, especially in biological technology and

biological therapy, establish relations with strategic partners all over the world to

improve and develop products. The goals of Sanofi in the future is to become the

pioneer in biological technology and to increase the rate of products produced through

biological technology from 14% (2008) to 25% (2012)

+ Domesco Company:

In 2009, DOMESCO has 4.67% of pharmaceutical market in Vietnam. Using updated

technology, the company has successful in research and been licensed to produce more

than 406 products. The raw materials are mainly imported from European an American

countries. The quality of raw materials is stable and certified with DMF. The targets of

Domesco is by 2015, Domesco will become a pharmaceutical and dietary supplement

corporation, strong enough to take up a high proportion in domestic market, improve its

prestige in the world to increase export, have wider distribution network than

MEKOPHAR (Domesco has 75 agencies).

The company is applying its strategies to develop products, maintain and improve total

quality management system, implement ISO standard system to provide high-quality

products. DMC has opened its pharmaceutical industrial complex in the first period with

many finished items. Those items will be exploited to diversify medical products. At the

Page | 34

Group 4- C0110



Capstone Project Report



same time, Domesco is promptly building technological infrastructure for High

technology Pharmaceutical industrial complex Domesco with the area of 111.320 m2,

will be finished in December 2010.

+ Imexpharm Company:

In 2009, the company has the domestic market share of 3.72%. Imexpharm targeted to

earn the total net revenue of 760 billion VND, representing a 7.55% increase from that of

2009 and become the best pharmaceutical company in Vietnam, create unique

competitive advantages, continue sustainable and effective strategies. This shows that the

company cares about sustainable development.

With the current capacities: having highly skilled and devoted staff, active and

enthusiastic sale and marketing staff, the company has enough abilities and means to

distribute its products to 64 provinces all over Vietnam (Vietnam has 64 provinces in

total). Distribution system meets ISO: 9001:2000 and 22000, GMP-WHO, GSP, GLP

standards. The company alw2.3.4 Analyzing the distribution channels

- The distribution mode of this industry goes through two main channels:

+ Group I: big hospitals and treatment institutions in different levels

+ Group II: branches, agents, distributors, drug stores (pharmaceutical importing

and exporting companies, trading enterprises, retailers, etc.)

-



The distribution system is still at a very small, primitive and overlapping level



-



The distributors put a lot of pressure on pharmaceutical companies and they are aware of

their higher position in the relation with the end-users.



ays directs itself to a unique path, not running after current trends but focusing on

customers. Imexpharm’s distribution system is similar to MEKOPHAR’s (Imexpharm

has only 3 agencies)

2.3.3.3 Potential competitors:

The possibility of having potential competitors in the Pharmaceutical industry is not

high. This is because there are a lot of entry barriers under the governance of State and

world organizations: According to the Decree number 27/2007/QD-BYT of Ministry of

Public Health and requirements of WHO, companies who want to produce drugs must

follow these standards: GMP-WHO (good manufacturing practice- WHO), GSP (Good

Page | 35

Group 4- C0110



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

Image 2.3: Some images of the Company’s manufacturing equipments

Tải bản đầy đủ ngay(0 tr)

×