The critical success factors in Zimbabwe’s retail pharmaceutical sector.

Abstract

The study was aimed at establishing Critical Success Factors in the Zimbabwe’s retail pharmaceutical sector. The major motivation to do the study was because most of the pharmaceutical companies in Zimbabwe were on the brink of collapse because they were either heavily making losses or barely breaking even. The aim of the research was to explore the factors that determine the success of retail pharmacies in an endeavour to remain viable. The study was centred on a multiple case study design of QV, Greenwood and Plaza Pharmacies. Qualitative research approach was considered to get in-depth discussions. The study made use of unstructured interviews whereby the researcher engaged in formal interviews through the use of an interview guide. The study considered four respondents from each organisation under study who were mainly Chief Executive Officers, Finance Directors, Marketing Directors and Human Resources Directors. The study concludes that the retail pharmaceutical industry is volatile, with so many stakeholder having the power and interest in the operations of the industry. These include suppliers, government, patients and regulators among others. The retail pharmaceutical industry is faced with so many challenges which include a drop in demand due to reduced employment, undeveloped health care infrastructures, stiff competition, price pressure and stiff regulatory requirements. This means that operational viability in retail pharmaceutical industry has been compromised by these challenges. The retail pharmaceutical industry is hugely dependent on CSFs such as selling a variety of drugs, sound financial management, convenient location, excellent service, accessing cheap sources of finance, being competitive on costs and strategic linkages with stakeholders. These CSFs determine the competitiveness of each industry player. Thus, to be successful, firms should have the ability to sell a variety of drugs, having sound financial management systems, having conveniently located pharmacies, excellent service, being competitive on costs and strategic linkages with stakeholders. The study was mainly based on QV, Greenwood and Plaza pharmacies, hence, study findings may not be generalised to other retail pharmacies. These findings should be generalised with caution, as the focus of the study was mainly on the most established retail pharmaceutical companies.