This case is about GOVERNMENT
PUBLICATION DATE: January 29, 1998
PharmaPlus in Hungary Case Solution
Pharmaplus’s latest venture is attempting to enter the retail “drugstore” industry in 1997. Surprisingly, the industry in mention has not found its feet in Hungary as of yet.. The countryhas strict laws defining what can be sold in a drugstore and a “druggery,” (which are two different things), yet PharmaPlus, (no link with the North American chain PharmaPlusDrugmart), is trying to blend the two with its one existing store. The Management of PharmaPlus is facing resistance from the regulatory body of pharmacists, which has the stakeholders in the current industry structure and authority over the operations of a drugstore, despite having the support of the Minister of Health and robust signs that the theory is popular with customers. The case deals with (1) problems of lobbying the stakeholders who have power; (2)developing an advantage that would ensure success in the market (though competition is close to non-existent);(3) the idea of a worldwide concept of service: (4) shaping an industry to one’s own edge;(5) an industry of pure competition (many players);(6) potential international expansion, and (6) the impact of Hungary entering the EU.
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