Industry Effects and Strategic Convergence: A Study of the Strategies of Independent Pharmacists

Authors

  • Michael J. Rubach University of Central Arkansas
  • Joseph D. Cangelosi University of Central Arkansas
  • Don B. Bradley, III University of Central Arkansas
  • Jeffery E. McGee University of Texas at Arlington

Abstract

The pharmacy industry is experiencing significant change. With the increasing presence of regional discounters, the appearance of mail service and internet pharmacies, the continuing ascendancy of managed care (including HMOs and PPOs), third party reimbursement plans, and pharmacy benefit managers  (PBMs), the strategic  options for  independent pharmacies are dwindling. This exploratory study examines  the relationships  among generic  business level strategies of independent pharmacies, industry effects -- in terms  of consequences  of third party reimbursement plans -- and performance outcomes. It seems that the impact of managed care reimbursements more than off sets the various strategic efforts by pharmacies. The evidence indicates that different generic strategy  approaches  are  not  producing significant differences in performance. The findings suggest that industry effects may  he creating a situation of strategic convergence. The practical implications for the independent pharmacists   and future   research  are  addressed.

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Published

2002-01-23

Issue

Vol. 13 No. 1 (2002)

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Articles

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Industry Effects and Strategic Convergence: A Study of the Strategies of Independent Pharmacists. (2002). Journal of Small Business Strategy (archive Only), 13(1), 18-31. https://libjournals.mtsu.edu/index.php/jsbs/article/view/491