Structure, strategies and market power of Genomma Lab: study case

Abstract

In the present research work the subject of the structure, strategies and market power of Genomma Lab was addressed, so a descriptive and explanatory study was carried out describing the concepts related to the aforementioned elements and explaining the indexes of Herfindahl -Hirschman (IHH) and Pascual. The methodology used is the application of the indices which are a measure of the level of concentration existing in an industry. The IHH index is the sum of the square of the market shares of the different companies that operate in an industry. This is to delimit the Mexican pharmaceutical industry in a market structure. In the main results, it was identified that Genomma is a diversified company, that takes the best of each company and potentiates it, for that reason it fits in the majority of the models, since it is forced to act like monopoly, that is why in the Year 2012 was obtained in the index of IHH 0.01690 and in the Paschal index 0.00127, which is why it is the most representative of the companies, followed by Bayer with 0.0086 and 0.00033 respectively. In addition, you get the instability index is 0.0235 small, which means that market share has changed very little, all three indices show that the market is quite competitive, regardless of the number of companies.