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Report on Core Competitiveness and Positioning of Chinese Medicine Retail Chain Business

Published by: SunFAITH China Ltd.

Published: Jun. 10, 2003 - 16 Pages


Table of Contents


1. Analysis of the core competitive power of medicine marketing chain business
1.1 Network resources
1.2 Client management
1.3 Brand equity
2. Bugs in the positioning of domestic medicine chain stores
2.1 Challenge of payoff
2.2 Confusing diversification
2.3 Disorderly positioning
3. Three major mistakes in positioning of medicine chain stores
3.1 Lack of inherent relevancy among diversities
3.2 Lack of positive analysis in operation positioning decision-making
3.3 Multiform specializations
4. Positioning analysis of chain drugstores
4.1 Analysis of operation positioning
4.2 Development of retail business
4.3 Distances in the dualistic (rural area and town) market

Abstract

The core competitive power of Chinese medicine retail chain business consists of three parts: network resource, the primal factor in building enterprises’ core competitive power; client management, the secondary factor which advances the core competitive power from the point of market; and brand equity, the basis of the former two factors.
The current disorder in medicine retail chain operation positioning reflects in challenge of payoff, confusing diversification, and disorderly positioning. There are three major mistakes in positioning, namely, lack of relevancy among diversities, lack of positive analysis in operation positioning decision-making, and confusion in specialization.
In respect of the positioning of medicine chain stores, attention should be paid to analysis of operation positioning, development state of retail business and China’s dualistic market (rural areas and town) According to statistics, there are over 6,000 enterprises engaged in medicine manufacture, over 17,000 in medicine wholesale, and 120,000 in retail. Fierce competition in the business has brought great challenge to medicine marketing enterprises.
With medicine marketing chains and par value drugstores popular at present and price wars breaking out frequently, we wonder how far Chinese medicine retailers can go and how those enterprises can survive. As an answer to these questions, the core competitive power of the medicine marketing chain operation should be taken into consideration.

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