The Global Pharmaceutical Industry: Swallowing A Bitter Pill - Essay Example

The Global Pharmaceutical Industry: Swallowing A Bitter Pill Innovativeness in high tech is of importance in the pharmaceutical industry in the sense that it facilitates Value creation in the industry. Innovativeness also contributes to maintenance of a company’s competitive advantage (Johnston, Whittington and Scholes, 2011, p.5). The pharmaceutical industry faces issues such as lack of information concerning the market or issues such price instability for their products. It is in view of this that the pharmaceutical industry explores the idea of increasing their innovativeness in high tech in a bid to improve their exploration of the market, as well as stabilize their prices in the market for their products.

McMillan states that innovation does form the root for efficiency, and effectiveness in any organization the increment of high tech innovativeness in any company require the internal competitive forces that foster this innovation. McMillan explains that innovation involves a process that requires a variety of social and behavioural process (McMillan, 2010, p. 12). Establishing innovativeness in a high tech pharmaceutical industry requires that the organisation has leaders with core organisational skills and competencies.

It is also essential that the industry has a capacity to listen as well as carry out study and scrutiny on decision alternativeness. The industry also needs to have a track of their innovative technologies. The company also needs an analysis of how these technologies benefitted the company. The company could also take these technologies and work on improving on them in an effort to boost the company’s efficiency. The company also needs to be able to mobilize the company’s employees to utilise the new technology introduced to the company.

The high tech technology should also represent the company’s vision (McMillan, 2011, p.12). An industry that wishes to growth in high-tech innovativeness should consider an evaluation system for monitoring the technological capability of the pharmaceutical industry. The monitoring system monitors the technological ability of the industry basing on the information of inputs and outputs of the technological innovation. The monitoring of the high-tech innovativeness does benefit the industry in a number of ways new products are produced by the company, cost of production is lowered and the company encourages its members to learn new ideas from the new technology.

Large drug companies also consider the corporate innovation as a strategy for improving their innovativeness. Drug industries do employ the services on contract research organisations who offer a variety of services. The academic institutions and platform technology firms also offer the same services as the Contract research organizations. The contract research organizations mainly focus their attention on four key areas of the pharmaceutical industry, chemistry biology lead-optimization and screening.

Outsourcing in a pharmaceutical industry is cost-effective and, therefore, beneficial for the pharmaceutical industry. Contact research organisations are cheaper and faster when we consider any development process. Most companies are heavily investing in outsourcing as this encourages innovativeness. The contact research organisations struggle to come up with new drug patents that are effective in the medicine world. The competition between drug companies is stiff, therefore, each organisation struggles to keep up with the competition by bringing into the market a drug that is effective.

Annual reports from different pharmaceutical industry show a growing trend in the investment, in outsourcing organisations and these trends, indicate a rise in the future. The contact research organisations have been known to increase the innovativeness of most pharmaceutical companies. Outsourcing companies are an essential part of the pharmaceutical industries. They also are valuable in the promotion of innovation in science and technology. Employing an outsourcing organisation would be the most effective way for a large company to increase its innovativeness in the competitive global pharmaceutical industry (Hu et al, 2007, p. 27). The ability for a pharmaceutical company to go high-tech depends on the government support.

However, it is also necessary for that the government comes up with a tax incentive or an incentive environment that allows the company to test new drugs before releasing them to the market. The ability for a pharmaceutical industry to test its new products and technology of their industry also gives them the power to control the prices of their products. Any pharmaceutical company needs to be independent and efficient to be able to carry out research. A high tech pharmaceutical company should also have development potential.

The development capability allows a pharmaceutical company to rear high technology. In an effort, to improve their technology the pharmaceutical companies also strive to maintain their customers. Their ability to improve on their technology focuses on improving the quality of their products. The global market presents a competitive environment for pharmaceutical industries, which entails high technology, which is efficient in the production of indigenous patents. A pharmaceutical company is recognized through its patent (Klunko, 2011, p.3). References Hu M, Schultz K, Sheu J, and Tschopp D 2007, The Innovation Gap in Pharmaceutical Drug Discover New models For R&D Success, Kellog School Of Management: Illinois, pp 1-37.

Klunko, N. 2010, Innovative Development in Pharmaceutical Industry of the Russian in the Context of Globalization, Saint Petersburg University: Russia, Pp 2-3. McMillan, C. 2011, “Five Competitive Forces of Effective Leadership and Innovation” Journal of Business strategy, Vol 31(1): pp 11-22. Johnson, Whittington and Scholes 2011, Exploring Strategy, Pearson Eductaion Limited ..