Are competitors ready to take on a deregulated Apoteket AB?

Abstract: Date: 2008-06-05 Level: Master Thesis in Business Administration, 15 ECTS Authors: Amina Ahmed Ibrahim Beatrice Yola Konlaan Carol Nakajugo Basudde Tutor: Sigvard Herber Title: Are competitors ready to take on a deregulated Apoteket AB? Problem: With the oncoming deregulation of the monopoly, Apoteket AB appears to have a competitive advantage over incoming competition therefore the problem is to find out:  What competitive advantage Apoteket AB has over its competitors.  If the competitors have the tools to successfully compete with Apoteket AB. Purpose: The purpose of this thesis is to find out whether competitors in Sweden are able to compete successfully with Apoteket AB for the market of non prescription medicine. Method: Qualitative and quantitative methods have been used in this thesis. In order to achieve the desired result of this research it is appropriate to choose this approach since it enables the researcher to be able to explore all areas of the subject at hand and also give an in-depth discussion and analysis. Conclusion: Apoteket AB has several competitive advantages over its competitors. It has a strong brand name that is known and trusted by customers. While all three competing companies see themselves as complements to Apoteket AB, we think that the competitors have what it takes to successfully compete with Apoteket. Judging from previous cases such as Norway and Denmark which showed different outcomes of deregulation in the retail pharmaceutical industry, the competitors in both cases have not been on the losing side. Supermarkets, petrol stations and grocery stores in Denmark and Norway were also competing with their respective pharmacies based mainly on price, accessibility and convenience. In conclusion this is an indication that the competitors in Sweden have more than enough tools to successfully compete with Apoteket AB. Keywords: Deregulation, Pharmaceutical retail, Apoteket AB, Monopoly, Competition.