Four ways to adopt a capabilities-driven strategy in the new health economy
As pharmaceutical companies of all sizes continue to adapt to the ongoing internal and external pressures of the new health economy, it remains imperative that strategy maintain distinct capabilities to position the company ahead of its competitors.
Escalating demand for medicines and major scientific advancements seem to paint a bright future for the pharmaceutical industry, but beneath the rose-colored tints of optimism, some see an unsettled landscape. As payers, providers and patients look for better treatments at lower cost, the old ways of doing business are fading, leaving pharmaceutical organizations to take an in-depth look at how they create value in the new health economy.
Adopting a strategic “way-to-play”
As seen across multiple industries, companies that build their strategy on a set of coherent capabilities generate greater returns. A capabilities-driven strategy requires each company to identify their distinct value proposition, or unique “way to play,” align the strategy to the changing market landscape, and then cultivate differentiated capabilities to execute it. The advantages of this approach are especially applicable to pharmaceuticals.
Focused on fostering unparalleled core strengths in areas such as R&D or operational efficiencies, there are four primary categories of capabilities-driven strategies in the pharmaceutical industry:
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