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Comparative analysis of community pharmacies and retail pharmacy chains: the case of Chile

Author

Listed:
  • Luis Felipe Vergara Maldonado
  • Ines Gabriela Rodriguez Morales
  • Eduardo Barrueto Mercado
  • Víctor Manuel Yáñez Jara
  • Andrés Antonio Rubio Rivera

Abstract

A strategic analysis of Chile's pharmaceutical industry has revealed strong competitive dynamics, in which three main competitor pharmacy chains have a high concentration, representing about 80% of the sector; pharmacy Ahumada, Cruz Verde y Salcobrand, followed by other pharmacies and mid-range chain pharmacies such as Dr. Simi, Dr. Ahorro, Knop and Galénica. The growth of community or people's pharmacies in the Chilean pharmaceutical market can be observed as a result of the collusion case between the large pharmacy chains Cruz Verde, Ahumada, and Salcobrand, between 2007 and 2008. This research was conducted through a comparison of the Communal Pharmacy of Chillán, Chile, with retail or chain pharmacies. The analysis included a comparison of the Communal Pharmacy and large retail chain pharmacies in terms of competitive advantages. One of the main findings was a significant difference in the prices of drugs sold by the communal pharmacy of Chillán versus chain pharmacies, with some cases observing a difference of up to 400%.

Suggested Citation

  • Luis Felipe Vergara Maldonado & Ines Gabriela Rodriguez Morales & Eduardo Barrueto Mercado & Víctor Manuel Yáñez Jara & Andrés Antonio Rubio Rivera, 2025. "Comparative analysis of community pharmacies and retail pharmacy chains: the case of Chile," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 16(2), pages 204-224.
    • Handle: RePEc:ids:ijbenv:v:16:y:2025:i:2:p:204-224
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