The Why and How of US Market Entry: A Qualitative Study of Non-US Pharmaceutical Companies

Abstract

The decision whether or not to start marketing your products in a new country is a big one. There are a multitude of factors that you could possibly consider and the consequences of making the wrong decision can be dramatic and long lasting. Moving into a new geographic market, however, has to be considered at some point by all pharmaceutical companies that pursue a goal of continued growth. There are no simple formulas to help the manager or executive to make the correct choice, but many years of academic research has attempted to put structure, or frameworks, onto this decision. Some of these frameworks no longer seem relevant as business practices and industry structures have evolved, but others do help to make a better strategic decision. For many firms, the USA is the largest single market that they have to deal with and for any company with global plans or ambitions, a strategy to market your products in the USA is absolutely necessary. Because of the nature of the industry (heavily regulated, research based, risky, many out-sourcing opportunities), selling your own products is not the only way that a company can be involved in the US market to strengthen their strategic position. Data do not exist that allow a simple, or even complex, analysis of the question ‘how and why’ do pharma companies expand into new countries. For that reason, the author formulated an interview structure that borrowed from market entry frameworks most relevant to the modern industry. The interviewees were executives from a range of pharma companies with experience of moving into the US market, or with plans to do so.