The principal aim of this research project is to pertain academic theories and knowledge about the market research in order to explore 3M health care, drug delivery system division (DDSD) key competitors and to determine key success factors for winning contracts for oral dosage forms and Phase III trial research for 3M (DDSD) in Europe.
2. Project Objectives:
The objectives of this project are:
* To explore contract pharmaceutical manufacturing and packaging market. * To identify, the European contract pharmaceutical market. * To explore the competitive advantage of European contract pharmaceutical market. * To determine the selection criteria for pharmaceutical companies for outsourcing. * To identify, the main competitors of 3M health care DDSD in Europe for oral dosage form. * To evaluate the key competitive lead of 3M health care DDSD against each focal competitor in Europe by putting main player within a comparative analytical framework. * To determine the internal and external gaps in 3M health care DDSD strategy in Europe. * To recommend the key market drivers and key success factors to 3M DDSD in Europe.
The pharmaceutical contract manufacturing (PCM) industry continues to grow at a steady pace, driven by cost pressures, stringent regulatory requirements and patent expiries. The highly competitive nature of the industry has been driving consolidation and companies are increasingly off shoring to emerging markets to reduce costs. As a result, players in key outsourcing destinations have been improving their manufacturing infrastructure to increasing their global competitiveness (Global Information, 2009). The global Pharmaceutical contract manufacturing market was worth $26 billion in 2007 and is expected to grow at an annual growth rate of 11.4% to reach $40bn by 2011(Business Insight, 2009). The technical expertise and cost savings offered by contract manufacturing organizations (CMOs) make them increasingly indispensable to companies. Greater emphasis has been put on European CMOs to leverage low-cost contract manufacturing markets, such as those existing in India and China, to enhance cost efficiency (Contract Pharma, 2008-2023). More and more pharmaceutical companies are going for outsourcing for their key products. The decision to outsource is often referred to as a make or bye decision, with make meaning to perform a function in the house and buy meaning to source the function from the contract service provider. Outsource activities of pharmaceutical companies’ ranges from manufacturing, packaging; clinical trials and sales force mobilization. The business model of European contract manufacturing market differs in many respects from North American counterpart. The main clients of European contract manufacturer constitute generic drug companies, while branded pharmaceutical form the core client base in North America. The European contract manufacturing market is very optimistic. This is because companies are spending a huge amount of money on R&D instead of building high cost manufacturing plants. But the manufacturer in Europe is facing a big challenge due to a shift of contract manufacturing in Asian countries like India and China. 3.2: Area of Research:
The research on this project falls into the broad area of pharmaceutical outsourcing indenture in Europe. Outsourcing is the conducting one or more organizational activities using external agents (Lacity and Hirschheim, 1993). The research involves the identification of the key players for contract manufacturing and packaging in Europe and their relative competitive advantage. Also, to determine the key factors for pharmaceutical companies to select companies for outsource partnership and Key factors to succeed in this market. Contract pharmaceutical service provider is helping pharmaceutical companies to navigate the complexity for developing, testing new...