An International Market Entry Model for Pharmaceutical Companies: A Conceptual Framework for Strategic Decisions

Abstract

Today's globalisation has forced pharmaceutical companies to expand their existing markets and continuously search for new markets. There is a growing trend toward mergers and acquisitions within the pharmaceutical industry. This process of consolidation is creating challenges and opportunities for pharmaceutical companies utilising it as a means of gaining entry into foreign markets. This current ‘desire to acquire’ may not always be the most appropriate method by which to enter a foreign market.

This paper will outline the strategic issues, as well as giving insights for pharmaceutical companies wishing to enter foreign markets. This will be achieved via a conceptual framework and model for entry to the international pharmaceutical market. In addition, the paper will discuss the implications of entry into foreign markets and the need for and direction of future research.