Market Structure,Manufacturer Behavior and Market Performance of the Pharmaceutical Industry in Hangzhou / 中国药房

ABSTRACT

OBJECTIVE:To provide references and suggestions for the further development of pharmaceutical industry in Hangzhou city.METHODS:Using the classic normal form of SCP in the industry economics,i.e.market structure-the manufacturer behavior-market performance,a transverse and longitudinal comparative study was carried out on the market structure,the manufacturer behavior and the market performance of the Hangzhou's pharmaceutical industry between 2003 and 2006.RESULTS:Hangzhou's pharmaceutical industry was characterized by oligarch model in concentration degree,low differentiation in products;high barrier of entry and exit;low strength in advertisement,and rational in the merge and recombination.The manufacturers in this area attached increasingly importance to technological progress and the market performance was remarkable.CONCLUSIONS:Considering the status quo of Hangzhou's pharmaceutical industry,it is advisable for the manufacturers enlarge and strengthen their business,enhance its R&D investment and product differentiation,and stick to the market-oriented marketing concept.