| dc.description.abstract | The treasure of Traditional Chinese Medicine (TCM) was established through the inheritance of thousand years of long history in traditional medicine, the well-established Chinese medicine resources, and experiences in using TCM formulas. The modern medical has been gradually developed from “disease treatment” to “health promotion” due to the aging society and young population of sub-health state nowadays. Thus, TCM has gained recognition worldwide for its unique medical value.
This study examined how the business strategy was adopted by pharmaceutical company A in the extremely price-competitive market. This company has successfully created a competitive advantage with a new value chain of TCM industry through its technology innovation and digital transformation, as well as meet the customer’s needs in a way that rivals can’t. There are three intelligence management systems with AI innovation technology have been introduced to the hospitals, which include “TCM Dispensing Management System”, “Medicine Cabinet Lighting System”, and “AI Automated Medicine Dispenser”.
This study also analyzed the key factors through a nine-square grid based on nine elements that include customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. The strategic sweet spot was then determined by providing customers with the potentially key value-added services, technology innovation, feature of attractive quality, as well as to achieve the balance among the price and business value from the customers. This has changed the past market pricing mechanism, and has successfully overcome the weaknesses of low-price tender for the hospital with a new win-win business model. | en_US |