Introduction of Pharmaceutical Industry in Germany

In the paper, there is a discussion about the Pharmaceutical industry of Germany and the companies that are manufacturing high-quality medicines. However, in these companies there is the discussion on the Boehringer Ingelheim; Boehringer Ingelheim is the German company that is the largest medicine manufacturing. Consequently, the company Boehringer Ingelheim is getting a profit of 2.0% in the market, in the paper, Boehringer Ingelheim product differentiation, its analysis with the strongest and weakest companies is focused. Moreover, there is also focus on the pricing strategy as well as the threats on the company.

Competitive Analysis of Pharmaceutical Industry in Germany

Pharmaceutical industry of Germany is leading in manufacturing high-quality medicines. Boehringer Ingelheim is the famous German company that is one of the largest medicine manufacturing and selling the company in the whole German market. Competitive analysis includes information about the current market share of the selected company and its competitors. Major competitors of the company that are selling similar products in the same market are Bayer, Aventis, and Schering AG. 

Current market shares of the Boehringer Ingelheim in the world are 2.0%, while market shares of the competitor companies are as Bayer 1.3%, Aventis 4.3%, and Schering AG 1.3%. The pharmaceutical industry is very complex for new entrants. It requires detail research to find out the gaps in the market as customers usually do not trust new medicines unless that medicine is recommended by their doctors [1]. Therefore when a new company tries to get entrance in the pharmaceutical industry it has to directly contact the hospitals and doctors to sell out their products. However, doctors also prefer to recommend the medicines about which they are sure on the basis of their previous experiences or educational knowledge. Therefore while entering in such market new companies face barriers.

Product Differentiation of Pharmaceutical Industry in Germany

Product differentiation supports the company in building competitive advantage in the market. Boehringer Ingelheim Company is creating differentiation through adopting the unique features in their products and increasing the effectiveness of their medicines [2]. Boehringer Ingelheim Company is known as a highly innovative company in the pharmaceutical industry. They are taking advantage of getting help from the medical scientists to research on medicine and diseases to produce the best curing medicines.

Strongest and Weakest Companies of Pharmaceutical Industry in Germany  

 The companies in the pharmaceutical industry of Germany that has strongest and weakest competitive position in the market are Schwarz Pharma, and Aventis (German). Market analysis on the basis of market research data concludes that Aventis has the strongest competitive position in the market as it is the 5th best pharmaceutical company in all over the world. Aventis earn more than 17.3 billion dollars in a year from their sales while the total earning of Schwarz Parma is just limited to 1 billion dollars in a year.      

Pricing Strategy of Pharmaceutical Industry in Germany

Economics help out the organizations in order to select the most relevant and reasonable prices for products. Economics describes that companies can increase prices when the demand for the products is increasing [3]. While when the company is facing a declining trend in sales the prices should be decreased to maintain sales. However, economics also provide information about the role of macroeconomics and macro-environment while selecting prices for the products. The company has set their pricing strategy by considering all these information.

Threats of Pharmaceutical Industry in Germany

Increase in cost of manufacturing, the entrance of foreign countries in Germany, increase in medical research causing to bring changes in the medicine are threats for the company that can influence the business of the company in a negative manner if not managed properly.

Conclusion on Pharmaceutical Industry in Germany

It can be concluded that Boehringer Ingelheim is effectively performing in the Pharmaceutical industry of Germany. However, other companies are also effectively performing in the market. It is analyzed through the research that other than Boehringer Ingelheim there are various good companies in the market. Consequently, the competitors of Boehringer Ingelheim Company’s example, Bayer, Aventis, and Schering are also earning good profit in the market. It is noticed that Boehringer Ingelheim performance is better than the competitors, therefore, to maintain the position in the market; the company need to effectively focus on the pricing strategy as well as the cost of manufacturing to gain competitive advantage.

References of Pharmaceutical Industry in Germany