A Case Study on the Business Model Design of 24H Pharmacy Chain Store in Taiwan
Date Issued
2016
Date
2016
Author(s)
Tsai, Nian-Shun
Abstract
Pharmacies have been characterized as knowledge-intensive industry and have to maintain constant growth while facing fierce competition in Taiwan. They have to face the stiff competition both from foreign drug stores and large-scale pharmacy chains or consortiums. Pharmacies have to clearly identify their core competencies upon which differentiation strategy can be organized. In addition, they have to constantly revise and optimize their business model. How to systematically initiate all necessary changes so that business can be reasonably diversified becomes a critical issue for corporate management. In addition, retail pharmacies have undergone rapid growth due to the surge of Chinese visitors coming to Taiwan. How to take full advantage of such a business opportunity becomes a critical challenge for many pharmacy owners in Taiwan. In the light of such potential business opportunities, this thesis proposes an innovative business model of pharmacy chain in order to develop a blue ocean market in Taiwan. Based on a real world case study on a local pharmacy chain, our research prescribes a 24-hour pharmacy chain for discussion. Based on the framework of Blue Ocean Strategy and Alex Osterwalder’s Business Model Canvas, this thesis provides suggestions covering from strategy, organization to staff development for making pharmacy chains competitive. By developing young talents to serve as store managers, this model can be replicated efficiently based on the strategic architecture and competence configuration. Overall, the present thesis offers useful suggestions concerning how a pharmacy makes use of business models to plan and reconfigure their resource according to the guidance of Osterward’s nine building blocks of business model canvas, how they develop new business models for pharmacies by leveraging upon their professional skills, core competencies and the concept of cross-industry alliances. Implications of these research results are also discussed.
Subjects
Business Model
Canvas
Core Competencies
24-hour Pharmacy Chain
Type
thesis