Strategic responses to challenges of globalization in the pharmaceutical industry in Kenya

Abstract

The study aimed at establishing the challenges posed by globalization to the pharmaceutical industry in Kenya and identifying the strategic responses to globalization adopted by the pharmaceutical companies in Kenya The population of interest in this study comprised companies in the pharmaceutical industry in Kenya. The industry consisted of three segments namely the manufacturers, distributors and retailers. Stratified sampling technique was used to select the sample. Primary data was collected using a questionnaire with both close ended and open ended questions administered to the managers. The method of analyzing the data was content analysis. It involved observation and detailed description of objects, items or things that comprised the object of study. The study concludes that most of the pharmaceutical companies were faced by challenges posed by globalization and these included innovation and increased competition as the main challenges. In addition, partnership to improve productivity and fear of loss of jobs were also cited as challenges brought by globalization to the pharmaceutical industry. In addition, the study concludes that globalization had affected most company s business operations in various areas such as compliance of regulations, volume of business and service quality. The study also concludes that the pharmaceutical companies had developed various strategic responses to globalization and these included restructuring of the companies that was aimed at strengthening international competitiveness and draw policy implications, mergers with other leading companies to increase productivity