scholarly journals Size and dynamics of order-of-entry effects in pharmaceutical markets

2018 ◽  
Vol 60 (1) ◽  
pp. 50-66 ◽  
Author(s):  
Daniel Porath
Keyword(s):  
Representative Sample ◽  
Probit Model ◽  
Multivariate Model ◽  
Pharmaceutical Companies ◽  
Competitive Advantages ◽  
Pharmaceutical Markets ◽  
Order Of Entry ◽  
Long Run ◽  
First Mover ◽  
New Framework

In anticipation of long-run competitive advantages, pharmaceutical companies often try to enter new markets earlier than their competitors. It is questionable, however, whether this effort is really justified, because knowledge about the expected size of these order-of-entry advantages is scarce. Apart from confirming the existence of long-run advantages for the first mover for some selected brands, the literature gives hardly any guidelines. The objective of this article is to provide the information on the existence, the size, and the dynamics of order-of-entry effects, which is necessary for deciding on the optimal moment for a launch. The author proposes a new framework—a fractional panel probit model—which is fitted to a big and representative sample. With this procedure, order-of-entry effects can be measured in a multivariate model and as absolute market share differences, which is more informative for pharmaceutical companies than former measures.

First-Mover Advantage: A Synthesis, Conceptual Framework, and Research Propositions

1992 ◽  
Vol 56 (4) ◽  
pp. 33-52 ◽  
Author(s):  
Roger A. Kerin ◽  
P. Rajan Varadarajan ◽  
Robert A. Peterson
Keyword(s):  
Conceptual Framework ◽  
Empirical Studies ◽  
Objective Assessment ◽  
Theory And Practice ◽  
Competitive Advantages ◽  
Marketing Theory ◽  
Order Of Entry ◽  
First Mover Advantage ◽  
Research Propositions ◽  
First Mover

Numerous conceptual and empirical studies advance the notion that first movers achieve long-term competitive advantages. These studies purport to demonstrate the presence of a systematic direct relationship between order of entry for products, brands, or businesses and market share. However, an objective assessment of the literature suggests that this view must be qualified. A broadened perspective is presented that highlights the complexity of this phenomenon and suggests that first-mover status may or may not produce sustainable advantages because of a multiplicity of controllable and uncontrollable forces. A conceptual framework identifying factors that underlie first-mover advantage and product-market contingencies that moderate the order of entry-competitive advantage relationship is proffered. Several research propositions relevant for marketing theory and practice are presented.

Shareholder Value, Management Culture and Production Regimes in the Transformation of the German Chemical-Pharmaceutical Industry

2002 ◽  
Vol 6 (3) ◽  
pp. 309-325 ◽  
Author(s):  
Sigurt Vitols
Keyword(s):  
Recent Literature ◽  
Shareholder Value ◽  
Value Management ◽  
Pharmaceutical Companies ◽  
Drivers Of Change ◽  
Management Culture ◽  
Long Run ◽  
The Us ◽  
Production Regime ◽  
National Systems

One of the greatest points of controversy in the recent literature in political economy is the extent to which “shareholder value” oriented institutional investors are drivers of change in national systems of corporate governance. This article argues that the key question is how management cultures shape managerial responses to pressures for change from capital markets. Empirical evidence for this argument is provided through an examination of changes since the mid-1990s at the “Big Three” German integrated chemical/pharmaceutical companies: Hoechst, Bayer and BASF. Despite facing similar demands from shareholder-value oriented investors, management at the three companies have pursued quite different strategies. The end result, however, may be the same from a production regime perspective, that is, the long-run withdrawal of “Big Pharma” from Germany as a location for R&D due to a more favorable institutional framework in the US.

scholarly journals THE CONCEPT OF BUILDING OF ECONOMIC ENSURING POLICY THE COMPETITIVENESS OF INNOVATIVE BUSINESSES IS FORMED AT THE MACRO AND MICRO LEVELS

2021 ◽  
Author(s):  
Iryna Zrybnieva
Keyword(s):  
Innovation Activity ◽  
Competitive Advantages ◽  
Resource Potential ◽  
Economic Entity ◽  
Marketing Orientation ◽  
Factors Influencing ◽  
Long Run ◽  
High Level ◽  
Key Aspects ◽  
Market Relations

With the development of market relations, growing uncertainty and risk, the high level of competitiveness of the enterprise largely depends on the level of its innovation activity. In this article the author described the factors influencing the formation of the competitive potential of the subjects of innovative entrepreneurship, carried out their classification. In his opinion, the competitiveness of innovative entrepreneurs depends primarily on the economic situation achieved through economic strategy (policy). The economic policy of ensuring the competitiveness of the subjects of innovative entrepreneurship is formed both at the macroeconomic and microeconomic level. At each level of management requires a special organizational and economic approach that ensures the transformation of available resources into competitive advantages through the use of certain competencies. The author concludes that the achievement of competitive advantages in the market in the future and high competitiveness of the enterprise in the long run are possible due to efficient use of resource potential, high strategic opportunities to reproduce resource potential, strategic marketing orientation of the product offer. With the growth of the dynamics of competitiveness of the studied subject of innovative entrepreneurship, it is necessary to determine its position in the internal environment, ie to identify how the current ability to compete corresponds to the opportunities present in the external environment. With declining dynamics (as an option – the lack of dynamics), including those obtained in the current assessment of competitiveness, it is necessary to first identify the reasons for the decline in the competitiveness of the subject of innovative entrepreneurship. Given that the assessment of competitiveness integrates three key aspects, the reasons, respectively, can be social, economic or technological in nature (or be characterized by a combination of them). Competitiveness as an internal mechanism of effective activity of an economic entity transforms the market into a system of factors influencing the process of competition, thereby forming competitiveness in the field of a separate competitive field.

GreenGo’s new strategy in the carsharing market of Budapest

2019 ◽  
Vol 9 (1) ◽  
pp. 1-23
Author(s):  
Zoltan Bakonyi ◽  
Erik Gyurity ◽  
Adam Horvath
Keyword(s):  
Business Model ◽  
Opportunity To Learn ◽  
Value Proposition ◽  
Content Type ◽  
Business Modelling ◽  
Academic Level ◽  
Long Run ◽  
First Mover Advantage ◽  
Start Ups ◽  
First Mover

Learning outcomes The purpose of this paper is to demonstrate how a business idea can be successful in the long run in a rapidly changing environment. Students could learn about the carsharing market and the world of start-ups. During the lesson, students could practice business modelling based on “Value proposition Canvas”. With this model, they can understand the real needs of the customers and the services, with which companies can provide gains for the clients and decrease users’ pain. Beside business modelling, the case provides the opportunity to learn about the concept of First Mover Advantage, which describes the possible advantages of being first on a market. Three different sources can provide first mover advantage: technological leadership; pre-emption of scarce assets; and customer loyalty. Start-ups should systematically think about acquiring some of the above to sustain their advantage. Case overview/synopsis This case is about a carsharing start-up GreenGo, which was the first company introducing the concept of carsharing in Hungary. GreenGo was founded in November 2016 in Budapest. Until today, it has approximately 170 cars and could establish a solid customer base with 6,000 subscribers. After one year of monopoly, GreenGo got a competitor, when MOL (one of the largest companies of the Central European region) entered the market with its new carsharing service: MOL Limo (Limitless Mobility). MOL Limo is using the same business model and marketing mix as GreenGo and started to operate with 300 cars. The case describes the urban transportation of Budapest, the business model and value proposition of GreenGo and MOL Limo in depth. It also presents some possible options for GreenGo to react to the new market situation. Complexity academic level Master in management, MBA. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS: Strategy, Case study organisation: GreenGo.

Corporate Responsibility in der forschenden Arzneimittelindustrie / Corporate Responsibility in the Research-Based Pharmaceutical Industry

2007 ◽  
Vol 227 (5-6) ◽  
Author(s):  
Andreas Suchanek ◽  
Nick Lin-Hi
Keyword(s):  
Pharmaceutical Industry ◽  
Corporate Responsibility ◽  
Corporate Philanthropy ◽  
Pharmaceutical Companies ◽  
Governance Structures ◽  
The Core ◽  
Long Run ◽  
Normative Expectations ◽  
Licence To Operate ◽  
Corporate Integrity

SummaryCorporate Responsibility is a crucial concept in the pharmaceutical industry, especially for research-based pharmaceutical companies. Companies are faced with a tension between fulfilling normative expectations of solidarity and making profits under the pressure of competition. We argue that the seemingly plausible strategy to realize corporate responsibility as corporate philanthropy is systematically misleading and, in the long run, undermining the legitimacy of the core business. Instead, pharmaceutical companies should demonstrate their corporate responsibility by investing in their licence to operate, that is, by preventing possible conflicts between profits and morals. This requires not only investments in governance structures but also the ability to communicate the legitimacy of making profits as well as their corporate integrity.

Redress Of Insurance Consumers’ Grievances A Study Of Company Executives’ Perception

Paradigm ◽  
2010 ◽  
Vol 14 (2) ◽  
pp. 1-12
Author(s):  
Deepa Sharma
Keyword(s):  
Representative Sample ◽  
Consumer Satisfaction ◽  
Complex Phenomenon ◽  
Long Run ◽  
Two Systems

In modern marketing, the consumer satisfaction determines the company’s long-run success. In the case of marketing of services, like insurance, consumer satisfaction has numerous dimensions, and is, therefore, a complex phenomenon. Based on a study conducted to examine the corporate and public systems for redressing insurance consumers’ grievances, this paper seeks to report the findings pertaining to the company executives’ perception of the two systems. A representative sample of executives from all levels of the consumer grievance redress (CCR) machinery of the selected insurance corporate put forth their opinions on the nature of a CCR system, reasons behind its establishment, and the resulting benefits of maintaining the same. Furthermore, they have suggested more effective proposals for improving their own system as also the need for an external system, especially the Insurance Ombudsman.

Modern Business Strategy Customer Relationship Management in the Area of Civil Engineering

2014 ◽  
Vol 678 ◽  
pp. 644-647 ◽  
Author(s):  
Mijat Jocovic ◽  
Boban Melovic ◽  
Nikolay Vatin ◽  
Vera Murgul
Keyword(s):  
Customer Relationship Management ◽  
Business Strategy ◽  
Civil Engineering ◽  
Relationship Management ◽  
Customer Relationship ◽  
Competitive Advantages ◽  
Business Results ◽  
Doing Business ◽  
Long Run ◽  
Modern Business

Customer Relationship Management (CRM) is a modern business strategy which creates and maintain long term and profitable relations with the buyers. CRM serves for planning and maintaining processes of sales and strengthening competitiveness by registering all interactions of the company with its buyers and suppliers. This system collects and consolidates information from various sources within the company, and where it is possible, they collect information from the company's surroundings in order to offer unique image about each single client, in the real time. Aim of the paper is to show that CRM strategy can be successfully implemented in doing business in the area of civil engineering, so that good business results can be generated on that basis and strengthen competitive ability. Achieving close relations with customers represents main tools for obtaining competitive advantages, thus this paper will show the significance of setting up these relations with customers as well as ways how CRM can contribute to improving better operations on the long run.

The Competitive Advantage of Nations 25 years – opening up new perspectives on competitiveness

2015 ◽  
Vol 25 (5) ◽  
pp. 471-481 ◽  
Author(s):  
Örjan Sölvell
Keyword(s):  
Competitive Advantage ◽  
Competitive Advantages ◽  
Content Type ◽  
Long Run ◽  
Diamond Model ◽  
New Perspective ◽  
New Research ◽  
Sustainable Competitive Advantages ◽  
Opening Up

Purpose – The purpose of this study is to analyze how The Competitive Advantage of Nations project led by Professor Michael E. Porter has opened up new perspectives on competitiveness of nations and firms for scholars, practitioners and policymakers. With the publication of The Competitive Advantage of Nations (CAON) book in 1990, Professor Michael E. Porter opened up a whole new perspective on competitiveness and clusters, including both new research avenues and new perspectives for practitioners and politicians. By questioning the traditional, more static and macroeconomic, views on competitiveness, he opened up for a new model of microeconomic drivers of long-run firm competitiveness. The new conceptual model, the Diamond model, pointed to the importance of healthy rivalry and dynamic clusters, in the proximate firm environment, as central to our understanding of how firms build sustainable competitive advantages in global markets. Design/methodology/approach – Literature review and conceptual. Findings – To distinguish between short-term, more static, and long-term, more dynamic competitiveness of firms, and the competitiveness of nations and regions, the paper proposes a conceptualization into three interrelated concepts: competitiveness and innovativeness of firms, and attractiveness of nations and regions. Originality/value – This paper summarizes 40 years of Professor Porter’s seminal research with a focus on the CAON project that began with the 1990 book on The Competitive Advantage of Nations. The paper proposes three interrelated concepts to cover issues of competitiveness: competitiveness (firm’s static advantages), innovativeness (firm’s dynamic advantages) and attractiveness (national/regional advantages).

Superior economic performance in developed and developing countries

2017 ◽  
Vol 12 (1) ◽  
pp. 93-107 ◽  
Author(s):  
Sandra Ruiz ◽  
Paulo Arvate ◽  
Wlamir Xavier
Keyword(s):  
Developing Countries ◽  
Economic Performance ◽  
Probit Model ◽  
Developed Countries ◽  
Competitive Advantages ◽  
Content Type ◽  
Significant Difference ◽  
Kolmogorov Smirnov ◽  
The Difference ◽  
Using Data

Purpose The extant literature on emerging economies states that the development of the institutional context contributes to the creation of hypercompetitive conditions. The purpose of this paper is to test this assertion by using data from both developing and developed countries. Design/methodology/approach The study used a probit model, Kolmogorov Smirnov tests and propensity score matching to determine the difference in persistent superior economic performance. Panel data from 600 firms in 26 different countries were used for the period from 1995 to 2011. Findings The empirical results support the proposition that there is a significant difference in superior economic performance and persistent superior economic performance sustainability between firms in developed and developing countries. Originality/value This study contributes by fostering other theories related to competitive advantages and giving special emphasis to the comparison between developed and developing countries.

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