The analysis of barriers to entry into the pharmaceutical market of Ukraine

Abstract

The pharmaceutical market of Ukraine is characterized by a tendency to dominate imports over exports, which indicates its economic attractiveness for foreign companies that face various obstacles when entering the market. Entry barriers are understood as factors of an objective or subjective nature that prevent new firms from organizing profitable operations in the industry. The presence and impact of market barriers prove the need for their identification and comprehensive research. It has been established that when entering the pharmaceutical market of Ukraine, there are restrictive barriers related to state policy (for example, licensing, registration of medicines, examination, certification, etc.), barriers due to competition, and barriers of a non-legal nature. The results of the analysis of the competitive situation as a possible barrier characterize the pharmaceutical market of Ukraine as a market of free competition, which contributes to the relatively free entry of foreign manufacturers. Market entry barriers are also caused by anti-competitive behavior such as mergers and acquisitions, unfair competition, informal agreements, and so on. The results of the research can be used in making decisions about entering new markets or market segments for pharmaceutical companies, in forming competitive advantages and business strategies in order to develop potential in the long term.