Strategic Outsourcing in the Pharmaceutical Industry: A Transaction Cost Analysis
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
The key question in this essay is about strategic outsourcing in the pharmaceutical industry, discussed from a transaction cost perspective. The authors have chosen to carry out this research according to the case study theory suggested by Gummesson and others. A representative for a large pharmaceutical company, AstraZeneca, and a representative for small entrepreneurial companies, Karolinska Innovations AB (KIAB), were chosen as case studies. These two companies were completed by interviewing a major player in the outsourcing market, Quintiles AB, to be able to look at the type of relationship between buyer and seller. In summary, smaller companies need to outsource a large amount of it’s production due to its financial limitations, which is also the recommendation according to the theory. Larger companies like AstraZeneca should choose outsourcing and at the same time lengthen the duration of the outsourced projects. A outsourcing ratio of 30%, which is the policy of AstraZeneca, seems to be the right approach in the decision between outsourcing and production inside. Early research in drugs, though, will not be outsourced because of the strategic implication. In terms of type of contract, our research has shown that a move from the pure buyer/seller-relationship towards a preferred supplier or even a strategic supplier alliance is recommended.
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IdentifiersURN: urn:nbn:se:su:diva-2947OAI: oai:DiVA.org:su-2947DiVA: diva2:192083