Shruti Bhat PhD, MBA, Operational Excellence Expert
  • Home
  • About Shruti
  • Books
  • Insights
  • Operational Excellence
  • Articles
    • Innovation Management and R&D Leadership
    • Product Development
    • Business Transformation
    • Process Improvement
    • Business Continuity
    • Change Management
    • Digital Transformation
    • Quality Improvement
  • Tools
    • Whitepapers
    • Checklists and Templates
    • Free eBook
    • Videos
  • Engage Shruti
    • Consulting >
      • Operational Excellence Consulting
      • Business Transformation Consulting
      • Innovation Management Consulting
    • Workshops
  • Case Studies
  • Blog
  • Contact

Market access hurdles in Emerging markets for Pharma / Biotech companies

9/24/2013

0 Comments

 
It’s a known fact that emerging markets especially BRIC countries, show promising future to a company’s growth and we have witnessed numerous corporate expansions there, including the pharmaceutical industries- BIG Pharma... 
 
Additionally, while multinationals continue to seek out these attractive emerging markets, a new report shows many still struggle to compete with powerful local businessmen. 

Many of these markets are dominated by able and ambitious local businessmen that not only have far superior knowledge of the market and better language skills, but also stronger government and local ties. They are often able to better negotiate, which can help lower costs, and can sometimes be seen as favored over their multinational rivals. 

Despite China’s slowing growth, it still remains their most important emerging market, followed by Brazil and India. It’s clear why major companies want to enter developing regions. Not only is labor cheap there in comparison, but emerging markets are now responsible for nearly 40% of global GDP and an even larger share of GDP growth.

But the picture is not all that rosy- A survey information recently released by Boston Consulting group (BCG) based on interviews conducted with C-suite –  executives (of multi-national organizations that have either ventured/ or in the process of entering the BRICs foray) reveal that, 87 % don’t believe that they have what it takes to succeed against niche competitors in developing markets. Importantly, these C- suite executives were from US, Canada, Western Europe and even Asia. 

Yet when BCG asked executives to assess the relative importance of 13 capabilities in emerging markets and then evaluate their companies’ actual performance against those dimensions, companies reported disappointing findings.

As a Business Enterprise Strategist, having led development of more than 1200 drug products currently being sold in 65 countries worldwide, including BRIC, I thought of taking this platform to share few of my experiences here-

Let’s take example of China- A pharma/ biotech company selling Type 1 vaccines, gets entry into China only if the product is locally manufactured. Therefore, enterprise strategy should necessarily be based on either creating a manufacturing base in China or establish a JV with a local Chinese company.

Furthermore, new entrant organizations having strategic alliance with local Chinese companies get better tax and government benefits as compared to wholly owned enterprise.

Another e.g. involving India & Brazil - In India, there is a huge need for compliance to different licenses. The procedure for application & approval of these licenses are pretty well laid out, But, execution of those procedures at government offices is extremely poor. For e.g. The average wait time to receive a permission to conduct bio-equivalence study lies anywhere between 12- 18 months. Similar license scenario exists in Brazil too. Importing even an excipient into India or Brazil is a big hassle, unless a well-thought of procurement design plan is in place.

Yet another example - Most of BRIC countries expect in-coming foreign companies to manufacture locally... But what is “local manufacturing” is defined differently in different countries within BRIC !

This clearly amplifies the point- if corporates wish to expand into BRIC, they better understand the bricks & mortar of what builds, works and stays in BRIC countries! 

Are you ready ?

​Follow Shruti on Twitter, Facebook, YouTube, LinkedIn

​#ContinuousImprovement   #Innovation  #Strategy
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Shruti Bhat, global leader in business turnaround, operational excellence and continuous improvement
    To contact Dr. Shruti Bhat text or WhatsApp at 1.403.969.6219

    New Book Released!

    Revolutionizing Industries with Lean Six Sigma

    Shruti's YouTube Channel ...

    Picture

    Blog Categories

    All
    3D Printing
    Agile
    Artificial Intelligence
    Automation
    Biotechnology
    Books
    Business Continuity
    Business Turnaround
    Case Studies
    Change Management
    Checklists
    Chemical Industry
    Continuous Improvement
    Design Thinking
    Digitalization
    Drug Delivery
    External News Links
    Hall Of Fame
    Healthcare
    Hoshin Kanri
    HR Development
    Innovation
    Insights
    ISO
    Just In Time
    Kaizen
    Leadership
    LEAN
    Lean Six Sigma
    Life Sciences
    Machine Learning
    Manufacturing
    Medical Devices
    Mistake Proofing
    Motivational Cards
    MSMEs
    Nanotechnology
    Operational Excellence
    Packaging
    Patents
    Personal Products
    Process Improvement
    Product Development
    Productivity Increase
    QbD
    Quality Management
    R&D Leadership
    Robotics
    Service Industry
    Six Sigma
    Strategy
    Supply Chain Logistics
    Telecom Industry
    Templates
    TQM
    Videos
    Voice Of Customer
    Whitepaper
    Workshops

    Shruti's books...

    Picture
    top ten strategic decision-making tools for operational excellence
    shruti bhat, business process management, continuous improvement
    kaizen for pharmaceutcials, medical devices and biotech industry book by Dr Shruti Bhat
    Book on Continuous improvement tools by Dr Shruti Bhat
    kaizen for leaders, continuous process improvement tool to increase profit and organizational excellence by shruti bhat
    kaizen, shruti bhat, continuous improvement, quality, operations management
    how to lead a successful business transformation
    leading organizations through crisis
    emotional intelligence
    how to overcome challenges of creating effective teams
    modular kaizen Vs Blitz kaizen
    How to increase employee engagement as a new boss

    ​Micro-Learning
    ​Partner

    Picture

    Wellness
    ​Partner

    Picture

Connect with Dr. Shruti Bhat at- ​Twitter, YouTube, LinkedIn​

© Copyright 1992- 2025 Dr. Shruti Bhat ALL RIGHTS RESERVED.
See Terms and Conditions for details on this site usage.
Subscribe to Operational Excellence Academy YouTube Channel
​Subscribe to Operational Excellence Academy YouTube Channel
SHRUTI BHAT, CONTACT
Click to connect.
Created by Macro2Micro Media