Czech pharmaceutical company Essay
• Germany is a highly developed country and is well on its way to success and advancement. • “The pharmaceutical industry is a highly significant supplier of innovations, especially for the service sector (e. g. , public health services). ” (Nusser, 2005). Therefore, a successful development in this industry is beneficial for the entire country in several ways. Also, one of the success demand conditions is innovation and new horizons to explore. • Pharmaceutical Companies also are huge influencers on the Research and Development sector of the country as well since they encourage their innovations.
• The Factor Condition is favourable for the country since Germany has extremely cheap labour as compared to the foreign market for example the Czech Republic and therefore hides strength in it. ? WEAKNESSES: • Germany has an acute dearth of raw material due to which it heavily relies on other sources making the country dependent over others. • The current weakness that is found in the development of the Pharmaceutical industry is that the country pays too much attention on the functionality of the industry and often ignores the related and supporting industries associated to it.
These factors are as important as the main issue itself
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• “The competitiveness of Germany as a location for research- and knowledge-intensive industries depends strongly on global progress in science, technology, research and education” (Nusser, 2005). Hence an improvement in an overall global technology and science would make room for an opportunity for Germany as well. • “Promising innovative economic sectors and the technologies used within these sectors open up new markets and competitively reorganize traditional industries” (Nusser, 2005).
Therefore, excelling in the Pharmaceutical Industry would result in disclosure of new and unidentified markets for the country that might result to be beneficial for Germany later on. • “A fortification of these innovative industries will create incentives for global acting companies to conduct new investments in Germany. Positive economic impacts on innovation, economic growth and employment in Germany would be the result of these investments. ” (Nusser, 2005). • The cheap labour available in the country is an attraction for foreign investors and incentive for inward Foreign Direct Investment.
? THREATS: • Research and Knowledge Intensive Countries is the sole mean on which the country can rely on for further success and global acknowledgement. • “In the context of globalisation, the challenge for policy makers is to develop and promote framework conditions which stimulates innovation, growth and employment in Germany” (Nusser, 2005). If the policy makers fail to do so they might never succeed in developing a successful Pharmaceutical Industry and might loose their chance of being a highly competitive nation. RECOMMENDATIONS:
• In order to develop a world-renowned Pharmaceutical Industry Germany needs “Identification of critical success factors and room for improvements” (Nusser, 2005). The country needs to identify both the demand and the supply factors that would help the country develop a competitive edge domestically as well as internationally. • “Germany is competing with other countries, which in past years have made numerous efforts to keep the pharmaceutical industry within their borders, or to attract new domestic investments” (Nusser, 2005).
In order to internationally establish itself, it needs the comparison of its efforts with both the developed countries like United Kingdom and United States along with developing countries like India and Singapore. • The research conducted in the field of Pharmaceutical Industry with Research and Development Department actively working should share the information with other research and knowledge intensive areas to improve efficiency.