Complete Case details are given below :
Case Name : PharmaPlus in Hungary
Authors : David W. Conklin, Jeffrey Gandz, Trevor Hunter
Source : Ivey Publishing
Case ID : 98G002
Discipline : Strategy
Case Length : 25 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In 1997, a Hungarian pharmaceuticals producer/wholesaler is attempting to enter the retail “drugstore” industry, an industry that does not yet exist in Hungary. Hungary has strict laws defining what can be sold in a pharmacy and a “druggery,” (which are two separate entities), yet PharmaPlus, (no connection with the North American chain Pharma Plus Drugmart), is attempting to combine the two with its one existing store. Management of PharmaPlus is facing opposition from the regulatory body of pharmacists, which has authority over a pharmacy’s operations and the stakeholders in the current industry structure, despite having the support of the Minister of Health and strong evidence that the concept is popular with customers. The case deals with issues of lobbying the stakeholders who have power, finding a sustainable competitive advantage in a market that has never seen this type of business, the idea of a global concept of service, shaping an industry to one’s own advantage, an industry of pure competition (many players), potential international expansion, and the impact of Hungary entering the EU.
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