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Analysis of China Traditional Chinese Medicine with Five Forces Model
Purchasing power of consumer groups: Due to the traditional position of Chinese medicine in China, most consumers are confined to China or countries that trust Chinese medicine. So the power of consumers is not great, but there are potential consumers.
Competition in the same industry: from the domestic perspective: 1. The competition among several major Chinese medicine manufacturers in China is fierce, such as Huoxiang Zhengqi, many other products have been made by manufacturers, and many western medicine manufacturers have also joined the competition in the same industry, which is equally fierce. From abroad, many countries in Asia have Chinese medicine manufacturing industries and their own factories, and there will be fierce competition in the international market (perhaps other countries will call Chinese medicine Chinese medicine or substitute products). )
Potential substitute: 1 Western medicine is a combination of chemical and biological components. Its advantages are as follows. The effect is quick. Easy to use, most hospitals in China are using it. 2 medical equipment: some equipment can replace the position of Chinese medicine and achieve the purpose of Chinese medicine. Such as a stone crusher. 3. Some nutrients. Does not necessarily belong to the ranks of western medicine. But in some cases it will also pose a threat to Chinese medicine.
Potential entrants: 1. Potential entrants should be determined according to the market of traditional Chinese medicine products. If Chinese medicine is particularly popular in a certain market within a period of time, some western medicine manufacturers or foreign companies will switch to the Chinese medicine industry if they have the ability. 2. The situation needs to be decided according to the actual situation.
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