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The Pharmaceutical Industry and Market in Australia


Discuss about the Business Strategy of The pharmaceutical Company.

The pharmaceutical industry is a complicated sector. Nowadays the technologies are leading towards the new innovation and development of the pre existing drugs. There can be several challenges in this industry that can hamper the development of any company in this industry. According to Rothaermel (2015), the complex procedure of the technological processes can enhance the management and organizational challenges. In addition to that the management and development of the distribution system can also be extremely costly (Hill, Jones & Schilling, 2014). However a pharmaceutical company needs to manage all the aspects to survive in the international market. The pharmaceutical company based on Saudi Arabia, Jamjoom Pharma, is now planning to enter the market of Australia. Therefore this report will have a detailed analysis of the market and the current strategy of the company. Therefore it will also prepare a strategy development plan which the company will follow while entering the Australian market.

The pharmaceuticals industry in Australia is an important contributor in the financial sector. The researches in the medicine sector in Australia had reached in a height that it improved the quality of the health care sector. Therefore is has a significant contribution towards making the Australian economy more strong. However the pharmaceutical industry in Australia mostly comprises of the subsidiaries of the multinational organizations. Therefore if any global company plans to enter the market it will have sufficient opportunities in the market. The pharmaceutical industry in Australia generates healthy jobs as well. The pharmaceutical industry is a technologically equipped and knowledge based sector that has been uniquely places for the development and commercialization (Galliers & Leidner, 2014). The pharmaceutical industry of Australia has an outstanding financial history in the recent years. According to the data card, the industry has spent around $404 million only on the pharmaceutical manufacturing in one financial year. The sales of the complementary medicines in the industry are generally around $2 billion annually. This industry has got a significant turnover in the last year with the exports of around $3.89 billion. As the industry generates jobs for several educated people every year, the data card also shows that it has employed around 15,463 people in Australia (Braithwaite, 2013). Even though the population of Australia is relatively small, Australians tend to consume a large amount of medicines. The pharmaceutical sales in the country have made up most significant part of the international market. The analysts have also ranked the country as the twelfth largest market in the year 2012.

The industry generally receives a major financial support from the Australian government. However the industry is mostly dominated by the vertically and horizontally integrated international entities which enhances the scope of more researches in this industry. The market analysts have predicted that the global annual spending on the medicine in the pharmaceutical industry is about to reach $1.4 trillion by the year 2020 (Dean, Loh & Coleman, 2016). Despite the slow development of the industry, it has reduced the contribution from the developed market places.

Jamjoom Pharma: Current Strategy and Objectives

The company, Jamjoom Pharma, is one of the leading pharmaceutical companies of Middle East. So far, the company has focused on the countries in the Middle East, CIS and Africa regions. The company has strategically focused on different categories in the domestic and international market. There are strong opportunities of the company in the domestic market, with the population going high and the number of public and private hospital increasing. The current vision of Jamjoom Pharma is to deliver the medicines which make the patients healthier at affordable costs ( 2017). The long term objective of the company is to capture the international market along with the domestic one. The company also targets to increase their role within the domestic market. Currently the company targets the domestic market, especially the newly open public and private hospitals. There are twenty seven pharmaceutical manufacturers in the market.

The strategies of the company are as follows:

  • Capture the outsourcing marketplace to get more revenues
  • Merge with small players in the market to diversity the product portfolio
  • Provide good quality yet low cost drugs to the distributors
  • The government already helps the pharmaceutical industry in setting up the shared facilities. The company needs to try to get help from the government.
  • Development through their new products
  • Adopt various business model

However, while entering the Australian pharmaceutical market, the company needs to review their previous strategy and adopt some new ones. Over the past few years, most of the companies in the market have grown larger; therefore can afford the large amount of distribution and development. In this situation, the company needs to consider adopting new business models while entering the Australian market. There can be three business models In this situation:

  • The Blockbuster Model that involves searching the way for the distribution of small amount of drugs while achieving substantial international sales (Juarez et al., 2017).
  • The Diversification model where larger amount of products are sent to the smaller market (Hayes et al., 2017).
  • The Intermediate model that involves some features of both the models.

However in the Australian market, the company needs to adopt the blockbuster model as it is the most dominant model in the market. The adaptation of the blockbuster model comes with a little dilemma as some had argued that it is always doubtful that the large pharmaceutical companies only depend on selling few drugs (Juarez et al., 2017). The company needs to have the short term and long term strategies in the market. Most of the short and middle term strategies of Jamjoom pharma would be dependent on the patent and post patent extension. Most of the big pharmaceutical companies try to extent the patents with the timely and smart reformation to prevent the loss of revenue. Therefore the company would be able to avoid their immediate losses. On the other hand, the post patent competition would include the indication and line extensions. The company will plan to buy the back generic organization, therefore launch the similar products in the market with new formulas and with some extra charges in order to fit the block buster model (Juarez et al., 2017). Jamjoom pharma should adopt an aggressive marketing strategy to count on their early sales of the new products. It will give the products a large life time. The company will collaborate with the branding organizations and media, so that they can formulate a successful launch strategy. The company should also involve an innovation process with their existing drugs. The betterment of the quality of their service can provide them a higher position in the market. The company should also ensure that they deliver the quality products to the market within a smaller price. However, the price difference is going smaller nowadays which will demand the company to make more effort in the financial sector.        

The company will also use the 7s Model Framework that involves seven interdependent factors categorizing in the soft and hard elements. The hard elements are the strategy, system and structure, whereas the soft elements are the skills, shared values, staff and style. The hard elements will define the factors that can be easily influenced by the management. These factors will include the organizational charts, reporting lines, internal IT systems and other formal procedures. On the other hand the soft elements are can be little complicated to be defined as these will be mostly influenced by the culture of Australia. For this reason the company may use the 7S Checklist questions that will explore the situation of the organization in Australia.


  • How to deal with competitive pressure?
  • What is the primary strategy?


  • What will be the company hierarchy?
  • How weak or strong are financial institutions and legal organizations?
  • Do transportation links exist?


  • What are the internal rules to keep the teams on track?
  • What is the primary system that will run the organization?

Shared Value:

  • What are the politics?
  • What are the norms?
  • Are the economies different?
  • How is knowledge shared across company lines?


  • What resources are available in each location?
  • What cultural issues exist?
  • What monetary differences exist?


  • Are some parts of the organization geographically remote from others?
  • What communication modes and technologies exist?


  • What are the skills within the organization?


In conclusion, it can be said that the company, Jamjoom Pharma needs to check the Australian market thoroughly as the global market may be a lot different than the domestic market. However, in the Australian market the company would have several competitors as several other international companies are also expanding their business in the market. Therefore the company needs to have a smart approach in dealing in the market. They should ensure the quality of their product as well. The company could also add more revenues through their market development and brand equalization. This will save up the cost at the same time.


Braithwaite, J. (2013). Corporate Crime in the Pharmaceutical Industry (Routledge Revivals). routledge.

Dean, J., Loh, E., & Coleman, J. J. (2016). Pharmaceutical industry exposure in our hospitals: the final frontier. Med J Aust, 204(1), 20-22.

Galliers, R. D., & Leidner, D. E. (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.

Hayes, S. C., Levin, M. E., Plumb-Vilardaga, J., Villatte, J. L., & Pistorello, J. (2013). Acceptance and commitment therapy and contextual behavioral science: Examining the progress of a distinctive model of behavioral and cognitive therapy. Behavior therapy, 44(2), 180-198.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning. (2017). Welcome to Jamjoom Pharma, an Afrasia enterprise. [online] Available at: [Accessed 18 Apr. 2017].

Juarez, W., Morris, D., McNult, D., & Heywood, J. (2017). The block buster: Using an open-ended task to link multiple strands of mathematics. Prime Number, 32(1), 22.

Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.

Stoller, J. K. (2014). The Cleveland Clinic: a distinctive model of American medicine. Annals of translational medicine, 2(4).

Vitry, A. (2016). Transparency is good, independence from pharmaceutical industry is better!. Australian prescriber, 39(4), 112.

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