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This paper is the research of the business styles and competitive advantages in drugstores. Due to the execution of National Health Insurance and the Departure of Medicine Business and Drug Business, the drugstore in dynamic environment must change its business style in order to sustain its competitive advantages and positions. Accordingly, this research explores the relations between business styles and competitive advantages of drugstores in dynamic and competitive environment. The subjects of this research are mainly chain drugstores (like Watsons and Mannings) and traditional drugstores in Taipei. Questionnaires were sent to 414 such drugstores, out of which 164 were valid. The salient findings are the followings: 1. The factors influencing drugstores to be regular chain drugstores are : the factor of customers'' demands, the factor of product competitive power of non-drugs and marketing key factors of non-drugs, but the competitive advantages of regular chain drugstores arise from the factor of the product competitive power of non-drugs and the factor of price-quality and customer oriented strategies. 2. The factors influencing drugstores to be franchise chain drugstores are : the factor of product competitive power of drugs, the factor of marketing competitive power, marketing key factors of drugs and the factor of time, know-kow and strongholds strategies, but the competitive advantages of franchise chain drugstores arise from marketing key factors of non-drugs. 3. The factors influencing drugstores to be traditional drugstores are: the factor of product competitive power of drugs, the factor of marketing competitive power, marketing key factors of non-drugs and marketing key factors of drugs, but the competitive advantages of traditional drugstores arise from institutional factors, the factor of marketing competitive power of non-drugs and marketing key factors of non-drugs.
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