SERVITIZATION AND CO-OPETITION IN THE PHARMACEUTICAL DISTRIBUTION: BACK TO BASICS?
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Abstract
This paper discusses how the pharmaceutical distribution sector has evolved in the past decades and the role of servitization in an ever changing market led by big players. An empirical analysis was conducted on Portuguese and Spanish distributors which enabled the identification of a detailed portfolio of services currently offered by the industry. These companies were compared in terms of current service provision, levels of implementation of added-value services, main reasons for implementation and levels of co-opetion within the sector. Some differences between both countries have been found in terms of their level and reasons for the implementation of value adding services. Major findings refer to the tendency of distributors to further develop their base services provision in the future aiming at achieving increased competitive advantage and loyalty. This raises concerns given that it can be interpreted as a “back to basics” strategy of low differentiation which may not be consistent with long term competitiveness.
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