Cost-Focused Strategies of Pharmaceutical Firms

Vietnam is classified in the group of countries with an emerging pharmaceutical industry. Vietnam's population is entering the "aging" phase; the proportion of the population aged 65 and over is 6.5%, and in 2017, it is expected to reach 21% in 2050. With the cost-focus strategy, firms only need to focus on applying the lowest prices and providing products and services to users at minimal costs. Implementing this strategy will help firms easily increase brand recognition and satisfy customers' shopping needs because they always prefer products with affordable prices and many great promotions. This paper aims at providing a comprehensive empirical examination regarding the cost-focus strategy of pharmaceutical firms in Hanoi, Vietnam. By drawing the concept from the previous studies, the study explores the cost-focus strategy of pharmaceutical firms as a business performance determinant. We used primary data from a survey of 200 employees working at pharmaceutical firms in Hanoi during 2022–2023, and there were 168 valid survey questionnaires included in the analysis, including descriptive statistics, reliability analysis of scales, and EFA analysis. Our findings suggest that the cost-focus strategy of pharmaceutical firms in Hanoi, Vietnam, is highly appreciated. Based on the research findings, our study emphasizes that the cost-focus strategy of pharmaceutical firms in Hanoi, Vietnam, needs urgent improvement to support the business performance of pharmaceutical firms.