Pharmaceutical Research Strategies: Diversification and Growth

This report analyzes the pharmaceutical research strategies employed by a company to achieve growth and competitive advantage. The company utilizes diversification as a core strategy, implementing it through investments in research and development (R&D), collaborations, market acquisition, and commercial strategies. The report emphasizes the importance of R&D for innovation, the diversification of the research portfolio to include biological products, and the acquisition of new markets to boost revenue. Furthermore, the company focuses on product diversification through partnerships and efficient distribution channels to mitigate sales fluctuations. The report references the complex nature of pharmaceutical R&D and the importance of strategic approaches to navigate the competitive landscape, including value-based pricing and efficient distribution to secure market positioning. References from academic journals and business publications are included to support the analysis.

Running head: PHARMACEUTICAL RESEARCH STRATEGIES 1
Pharmaceutical Research Strategies
Student’s Name
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PHARMACEUTICAL RESEARCH STRATEGIES 2
Pharmaceutical Research Strategies
Pharmaceutical Research utilizes diversification as a growth strategy. The company
adopts a diverse business model that implements diversification in four ways, namely, investing
in a Research and Development broad range of resources, collaborating with competitors,
acquiring new markets, and diversification of commercial strategies through value and pricing.
The company realizes that re-powering pharmaceutical innovation is a vital requirement as the
need for more medicines persists. For example, the increasing convergence between medical
devises, medications, and diagnostics necessitates establishment of innovative combined
products that will enhance the treatment, diagnosis, as well as prevention of different diseases.
Pharmaceutical research is thus prioritizing and investing in research and development as a
means of honing core capabilities and innovative resources in order to gain competitive
differentiation, coupled with sustainable and profitable growth in the long run. What is more,
diversification of the company’s research portfolio is also been targeted where conventional
dependence on chemical-based drugs has been adjusted to accommodate biological products. As
the assessment revealed, the company leader is a visionary and inventive person who implements
ideas and makes them successful. In this scope, investing in research and development is a core
strategy to ensure success of the company. However, as Burns, Nicholson, & Wolkowaski
(2012) agree, research and development in the pharmaceutical industry is an intricate process
that may take long periods to yield results. As such, the company emphasizes on collaboration
between employees as the assessments suggest.
The company is also utilizing diversification through acquisition of new markets as a
corporate strategy of boosting revenue from existing drugs. As revealed in the assessment, the
focus is on understanding the bigger picture. In this approach, the company attempts to maintain

PHARMACEUTICAL RESEARCH STRATEGIES 3
its traditional markets while making efforts to boost sales in emerging markets. Further, product
diversification is another strategy that the company utilizes to inflate the extensiveness of their
activities. It has applied this strategy by partnering with dermatology and eye care organizations,
and seeks to continue its expansion through such partnerships. As Jack (2010) outlines,
geographic expansions help reduce the risk posed by uncertain and fragmented markets. Further,
Kelly (n.d.) supports that accessing new as well as functioning markets is a fundamental
approach in the pharmaceutical industry where competition is high. The pharmaceutical
company also utilizes diversification of commercial strategies via value and pricing. This
approach is based on providing new drugs that are price competitive. As a consequence, the
company is able to acquire good positioning on the market.
As indicated in the assessment, organization and logical flow is pertinent to the
organization. As such, the company utilizes a highly efficient distribution. This strategy allows
the decrease in fluctuations in sales mostly arising from buying habits of distributors. This
approach involves alleviating the top limit of monthly acquisitions of the company’s
pharmaceutical products that address a specific market.
Thus, Pharmaceutical Research Company utilizes different strategies, with the core one
being diversification through research and development. Other approaches include acquisition of
new markets, diversification of commercial approaches, and modification of distribution channel
to form a more efficient distribution.

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References
Burns, L.R., Nicholson, S., & Wolkowski, J.P. (2012). Pharmaceutical Strategy and the Evolving
Role of Merger and Acquisition. In Burns, L.R. (Ed.), The Business of Healthcare
Innovation, 2nd Edition (pp. 116-193). New York: Cambridge University Press.
Jack, A. 92012). Big pharma aims for reinvention. Financial Times. Retrieved from
https://www.ft.com/content/986539aa-5e0c-11df-8153-00144feab49a
Kelly, B. (n.d.). Strategies of Business Development in the Pharmaceutical Industry. Work -
Chron.com. Retrieved from http://work.chron.com/strategies-business-development-
pharmaceutical-industry-21114.html