Abstract:

The pharmaceutical industry is undergoing rapid change. With governments focusing more and more on healthcare cost control, many companies face a strategic problem in maintaining their profitability. Traditional strategies such as globalisation and specialisation alone may not be adequate to effectively cope with this situation. Improving and optimizing internal company structures and procedures in product development are probably more important for the company's fitness to survive. This may vigorously shorten the development time and therefore in the end increase the product’s overall profitability. Japanese companies have a long history and an excellent image in structuring development processes, which should provide them with a major competitive advantage over their American and European competitors. Because they lack global presence, this had no operational consequences sofar. Following the rapid internationalisation of Japanese companies during the 1980's and the 1990's, this situation may change considerably. Yamanouchi is leading the way in this respect. Having its own European development and marketing organisation, its future is more promising than ever. Integrating "the best of Europe with "the best of Japan" can be seen as a clear management challenge. The successful completion of the first major "Eurojapanese" development project has meanwhile proven, that this process can be constructively managed. The pharmaceutical industry, what form it may take in the future, will certainly include change-driven, global Japanese companies.