Analysis of Market Shares in Pharmaceutical Industry: New Lanchester Strategy and System Dynamics

Today, many companies have developed different competition strategies with the purpose of reaching their institutional targets. developing of the competition strategies and reaction to the instantaneous changes according to the market conditions are possible with the detailed and dynamic analysis of the competitors. in this study, how to change the market shares of the pharmaceutical product companies that compete in a certain region, depending upon the sales force have been analyzed. lanchester’s laws have been used for the calculations made in order to determine the market shares. all calculations have been integrated in the frame of system dynamic model in the long run analysis of the market shares and forecasting the long term results of the different sales forces. different scenarios and long term effects have been analyzed for changes of sales forces via this model. the study ended up with obtaining the potential market share changes of the pharmaceutical product in the case study for the long run which would support the marketing activities.