Survival on the Reregulated Swedish Pharmacy Market - The former monopoly Apoteket AB responds to competition

The purpose of the thesis is to study how a state owned monopoly company, with historical responsibilities towards society, is affected by competition and how it uses its resources to maintain a strong position on the competitive market. The case study has been conducted by using qualitative methods. Primary data has been collected through interviews with managers and former managers within Apoteket AB. Secondary data such as published articles, homepages and Annual Reports have further been useful. The market structure has been analyzed by using Porters Five Forces framework. Theories concerning strategy, change management and internal resources have been applied when discussing the internal organization of Apoteket. The TOWS matrix summarizes the two aspects. Apoteket has competitive advantages over rivals because of their product credibility, tradition in the Swedish market and because of strong pharmaceutical competence. However, when faced with changed market conditions, Apoteket’s traditional culture and operating structure are critical aspects. When undergoing internal transformations, it is important to objectively evaluate the resources and capabilities in the context of a competitive market. Apoteket needs be careful not to overestimate its brand and should be cautious in their product development to not jeopardize the good reputation associated with their brand. Nevertheless, the company could try to maintain a balance between their former responsibilities towards society, with the new commercial requirements by for example investing in voluntary social projects. Since price competition will remain regulated by authorities, at least during the process of the market reform, service improvements and strategic localization will be the most important means of competition