Design of the Internet plus Drug Circulation Business Model Based on Value Chain

Abstract

With the continuous development of computers and the Internet, all industries in China have brought new opportunities for change, and pharmaceutical e-commerce has also shown great potential for development. With the call and encouragement of national policies, the “Internet + drug distribution” business model has shown great potential to replace the traditional drug distribution model in the near future due to its advantages of shortening the transaction process and reducing the cost of enterprises. This paper presents a literature review on theories related to “Internet + drug distribution,” value chain and business model at home and abroad, and focuses on how traditional drug distribution enterprises should adopt the “Internet + drug distribution” model when the country is vigorously promoting it. The study focuses on how traditional pharmaceutical distribution companies should innovate their business models from the perspective of value chain to seek better development. By comparing the business models before and after the innovation, the new business model of “Internet + drug distribution” can help enterprises establish diversified value propositions, increase revenue channels, and reduce operating costs. At the same time, it can integrate and innovate the internal and external value chains of enterprises, so that traditional pharmaceutical distribution enterprises can further enhance their competitiveness and expand their market share. This thesis can enrich the application of value chain and business model theories in the field of “Internet + drug distribution,” and it is hoped that the model experience developed in this thesis can be used as a reference for similar enterprises in their transformation process.