Market analysis of growing competition in pharmaceutical industry

摘要

This paper discusses the consumer behaviour towards in buying pharmaceutical products in Mexico, which is price-sensitive, and generic medicines are setting major competitive challenges in the pharmaceutical marketing. It is argued in the paper that the attribute of self-medication and search for low-price alternatives against prescribed medicines have given the opportunity for generic pharmaceuticals to enter the market competition in Mexico. The domestic firms, most of which are engaged in manufacturing generic medicines through retail pharmacy network, enjoy higher efficiencies than affiliates of major multinational pharmaceutical companies. This paper analyses the market competition between generic and commercial pharmaceutical brands in the context of buyers and distributors bargaining power, substitution effect and challenges from new entrants in the Mexican pharmaceutical market.