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Factors Influencing the Business Model Alignment of International Pharmaceutical Companies in Different Countries by the Example of the USA and Latin America

Student: Diana Kalmanova

Supervisor: Nina Mihaylovna Liubakova (Vladimirova)

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2019

Business model is a key to the successful business operation and generation of revenue streams. International pharmaceutical companies always struggle for finding their perfect business model in the conditions of fast changing pharmaceutical market and technological process which affects consumers’ behavior a lot. Furthermore, a significant obstacle occurs for business model generation when a company has operations in different countries. In this case, a company’s global business model needs to be aligned to the conditions of a certain market as it is common knowledge that every country has its own specifics, especially, when it tackles such a regulated industry as a pharmaceutical one. The differences of markets can start from the peculiarities of pharmaceutical products consumption, competition environment and regulation processes, ending with different level of economic, political , social or technological development. If a company wants to operate successfully on a certain market, it needs to consider all the factors which may affect its business model and align it to the market conditions. The aim of this research is to find out which factors make the biggest influence on business model alignment of international pharmaceutical companies in different countries. The object of the paper is business model of international companies whereas business model of international pharmaceutical companies serves as a subject of the paper. In this research, we will test a hypothesis that international pharmaceutical companies has different business models in the USA and Latin America. The research showed that such factors as economic, political, social, legal, environmental and technological ones make a huge impact on business model alignment of international pharmaceutical companies and should be considered by a certain company. Thus, the hypothesis was proven.

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