Business Strategy for Pharmaceutical Company to Become the Market Leader in the Psychiatry Sector in Indonesia

Abstract

The prevalence of people with mental disorders in Indonesia continues to increase and its growth has been accelerated by the COVID-19 pandemic. The increase of the prevalence is also extrapolated to the market for psychiatric drugs in Indonesia which has grown by ten percent from 2018 to 2019 and 2019 to 2020. In the psychiatric market, 12 companies with the highest sales already account for 80% market share. Seeing the psychiatric drug market condition that continues to grow and its market share is still small, the low-market-share pharmaceutical companies must have a new business strategy to seize this opportunity and become one of the market leaders in the psychiatric drug market in Indonesia. This research was conducted to determine the main external and internal factors that affect psychiatric drug business and then provide alternative business strategies for pharmaceutical companies to become one of the market leaders in the psychiatric market. In this study, interviews were conducted with 18 experts in the pharmaceutical field. Data from interviews were analyzed using content analysis. Pharmaceutical market data from IQVIA was used in this study and analyzed using the growth-share matrix. The results of the content analysis show that the main external factors affecting the psychiatry business are categorized into legal, political, economic, market, technological and social aspects. Meanwhile, the key internal factors are categorized into brand, corporate culture, human assets and intellectual capital, organizational resources, originality, physical resources and relationships. Low-market-share companies in the growing market need to carry out an intensive strategy to increase its market share through product development, market penetration and market development.