BoultonW.OswaldS., The U.S. Wholesale Drug Distribution Industry: A Strategic Analysis (Tokyo: The Health Care Institute of Science, Spring 1995).
2.
PorterM.E., Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York, NY: The Free Press, 1980), pp. 3–33.
3.
The term wholesale refers to all firms included under SIC code #5122. While some chain retail pharmaceutical companies perform distribution functions, they are technically not considered wholesalers.
4.
The President's Health Security Plan: The Clinton Blueprint (New York: Times Books, 1993).
5.
ShortellS.M.MorrisonE. M.FreidmanB., Strategic Choices for America's Hospitals: Managing Change in Turbulent Times (San Francisco, CA: Jossey-Bass, Inc., 1990).
6.
LoomisCarol J., “The Real Action in Health Care,”Fortune, July 11, 1994, pp. 149–157.
7.
RudnitskyH., “An Industry Top?”Forbes, April 15, 1991, p. 48.
8.
SolomonJ., “With or Without,”Newsweek, August 15, 1994, p. 58.
9.
Drug Store News, April 25, 1994, p. 51.
10.
Drug Store News for the Pharmacist, Industry Survey, May 16, 1994.
Wholesale sponsored voluntary groups is a specific type of vertical marketing system. For further information, see Jain, op. cit.
14.
Interview with Chuck Darling, GlenDean Drugs, a Health Center (Walker Drug Company) pharmacy, July 1995.
15.
McKesson Today, March 1994. FoxMeyer Annual Report, 1993. Interview with WalkerJim, President of Walker Drug Company, July 1994.
16.
The primary purpose of Valu-Rite and HealthCenters, as well as other voluntary drugstore chain programs, is to better allow independent operations to compete with the larger discount chains.
It is estimated by the National Wholesale Drug Association that 439 million transactions would be required between manufacturers and pharmacies, annually, without the use of wholesalers. The actual number for 1992 was 40.3 million transactions.
21.
See Porter's economic model in Porter, op. cit.
22.
The mission of D&K Wholesaler is to grow through synergistic acquisition of smaller wholesalers. In 1995, D&K was considering 30 different independent wholesalers for acquisition. D&K Wholesale Drug Inc. Company Update, June 7, 1995.
23.
McKesson Today, March 1994.
24.
LoomisCarol J., “The Real Action in Health Care,”Fortune, July 11, 1994, pp. 149–157.
25.
Ibid.; DuncanKaren A., Health Information and Health Reform (San Francisco, CA: Jossey-Bass, 1994).
26.
National Wholesale Drug Association Fact Book, 1992.
27.
Ibid.
28.
The President's Health Security Plan, op. cit.
29.
NWDA Fact Book, 1992; interview with CottonM. W., Durr Pharmaceuticals.
30.
Source: NWDA membership records.
31.
Drug Topics, November 9, 1992.
32.
Ibid.
33.
NWDA Fact Book, 1992.
34.
Drug Topics, November 9, 1992.
35.
Cardinal Annual Report, 1992.
36.
Porter suggests that there are three potentially successful generic strategic approaches to coping with the industries' competitive forces: Cost leadership, differentiation, and focus. For further detail, see, Porter, op. cit., pp. 34–46.
37.
McKesson Today, 1993 Annual Report.
38.
Ibid.
39.
A number of states are adopting insurance industry reform. In 1994, Minnesota established a statewide plan where health care services must be provided through an integrated service networks (managed care) at a fixed price, outside the system at an all-payer option. Tennessee shifted Medicaid recipients to managed care settings. Delaware is establishing health alliances and certified managed care health plans. Numerous other states have legislation pending. For more information, see NWDA Legislative Update, March 1994.
