RECOMMENDATIONS
Along with impressive growth the pharmaceutical and medical manufacturing industry recently, Traphaco is having some of its most profitable years. From 2012 to 2016, the company enjoyed an average growth rate of 16.3% regarding profitability and outperformed its fairly successful competitors as DHG 8,7%; DMC 14,6%; IMP 6,3%, etc (Traphaco, 2016). The year 2016, in particular, was a prosperous year for Traphaco as it reached the planned VND 2000 billion in revenues. Moreover, its revenues from exclusively manufactured and distributed drugs increased by 12% compared to 2015, exceeding the planned revenues by 1%. This is Traphaco’s main activities, which bring about over 70% revenues and 90% profits annually. Given the favorable …show more content…
In retrospect, it is safe to say that it’s time for Traphaco to collect the fruit of their successful application of a restruturing plan. Before 2014, TRA had about 10,000 customers, mostly wholesale ones with many weak points. In 2014, TRA successfully restructured its distribution system to increase its customer base to 18,000, nearly 80% of which is retail customers. Despite some sacrifices in growth in 2014, restructuring its distribution system along the vertical direction of the value chain for trading expansion has helped TRA become second biggest drug distributor at Vietnam market. In its journey ahead, it would be sensible for Traphaco to continue expanding its OTC sales channel. Special attention should be paid to developing this channel in the southern regions of the country as this large, potential market only accounted for 22% in sales compared to 67% of the northern region. Moreover, it is important for the company to take into account the increasing popularity and possible dominatition of prescription drug in Vietnamese drug market to develop adequate future …show more content…
As demand for natural based and organic medicine is on an increasing trend globally, Traphaco should invest more in researching, producing oriental herbs and drugs to boost sales and profits via selling oriental medicines in the foreign market as well as selling extracts for foreign drug producers. In fact, the company has already been aware of such opportunities so they have started long terms investment in planting herbs (Greenland project) like artichoke, polyscias fruticosa, etc that meet WHO’s GACP
Along with impressive growth the pharmaceutical and medical manufacturing industry recently, Traphaco is having some of its most profitable years. From 2012 to 2016, the company enjoyed an average growth rate of 16.3% regarding profitability and outperformed its fairly successful competitors as DHG 8,7%; DMC 14,6%; IMP 6,3%, etc (Traphaco, 2016). The year 2016, in particular, was a prosperous year for Traphaco as it reached the planned VND 2000 billion in revenues. Moreover, its revenues from exclusively manufactured and distributed drugs increased by 12% compared to 2015, exceeding the planned revenues by 1%. This is Traphaco’s main activities, which bring about over 70% revenues and 90% profits annually. Given the favorable …show more content…
In retrospect, it is safe to say that it’s time for Traphaco to collect the fruit of their successful application of a restruturing plan. Before 2014, TRA had about 10,000 customers, mostly wholesale ones with many weak points. In 2014, TRA successfully restructured its distribution system to increase its customer base to 18,000, nearly 80% of which is retail customers. Despite some sacrifices in growth in 2014, restructuring its distribution system along the vertical direction of the value chain for trading expansion has helped TRA become second biggest drug distributor at Vietnam market. In its journey ahead, it would be sensible for Traphaco to continue expanding its OTC sales channel. Special attention should be paid to developing this channel in the southern regions of the country as this large, potential market only accounted for 22% in sales compared to 67% of the northern region. Moreover, it is important for the company to take into account the increasing popularity and possible dominatition of prescription drug in Vietnamese drug market to develop adequate future …show more content…
As demand for natural based and organic medicine is on an increasing trend globally, Traphaco should invest more in researching, producing oriental herbs and drugs to boost sales and profits via selling oriental medicines in the foreign market as well as selling extracts for foreign drug producers. In fact, the company has already been aware of such opportunities so they have started long terms investment in planting herbs (Greenland project) like artichoke, polyscias fruticosa, etc that meet WHO’s GACP