Creating Competitive Advantage through Social Impact in Healthcare
Companies can create competitive advantage by addressing social issues through their business, focusing on healthcare gaps in developing countries and product adaptation to local markets.
00:00:00 How companies can address social issues through their business to create a competitive advantage, with a focus on the pharmaceutical industry and maternal and child health.
📚 Shared value is a concept that can fundamentally change the trajectory of healthcare and save the pharmaceutical business model.
🌍 Addressing social issues through business can create a competitive advantage and contribute to global health.
💼 Understanding the dynamics of the healthcare system is crucial for companies to make a difference in the lives of patients.
00:05:04 How companies can address social issues through core business activities to create competitive advantage and societal value, transforming capitalism.
📝 Shared value is a complementary approach to corporate social responsibility that focuses on solving social problems through core business activities, enhancing competitiveness and societal conditions.
🌍 The potential for scale is the magic component of shared value, as it allows companies to address social problems at a larger scope, unlike traditional donation-based approaches.
💰 Shared value challenges the notion that all profit is equal, as it emphasizes the creation of economic and societal value by using capitalism as a force for positive change.
00:10:08 How companies can create competitive advantage by addressing social issues through their business. Companies need to go beyond philanthropy and embrace shared value to address healthcare gaps in developing countries, adapt products to local markets, collaborate in R&D, and optimize supply chains.
🌍 Access to essential medicines is limited in countries like India and Africa, with 50% of the population lacking access.
💊 Pharmaceutical companies have responded to these issues through philanthropic efforts and drug donations.
💡 Companies are exploring new business models to address the challenges, including focusing on emerging markets, collaborating with the private sector, and embracing shared value approaches.
00:15:14 Companies create competitive advantage by addressing social issues through their business. Examples include developing affordable healthcare products and combining portfolios to provide consistent flow of HIV medicines.
🌍 Addressing local healthcare environments to improve access and quality of medical products.
💡 Companies can play a role in advocating for regulatory protocols and national guideline development.
💼 Examples of companies creating competitive advantage by addressing social issues through their business.
00:20:21 Companies can create competitive advantage by addressing social issues through their business. Novartis established a for-profit social business in India to serve the bottom-of-the-pyramid population with affordable healthcare products. They formed partnerships and built a distribution network to overcome challenges in rural areas. The success in India has prompted Novartis to replicate this model in Africa.
📦 Novartis entered India with a portfolio of products specifically designed for the low-income population.
💡 Novartis faced challenges in distribution and infrastructure, but overcame them through innovative solutions.
💼 Novartis's success in India has led to potential partnerships and expansion into other underserved markets.
00:25:26 How companies can gain a competitive advantage by addressing social issues through their business, using the example of Novo Nordisk's approach in China.
🔑 Companies can create competitive advantage by addressing social issues through their business.
💰 Addressing social issues can lead to economic outputs and cost savings.
🌍 China presents a significant market opportunity for addressing social issues through business.
00:30:30 How businesses create competitive advantage by addressing social issues through innovation, learning, targeted investments, new skills, and partnerships.
🔑 Companies can create competitive advantage by addressing social issues through their business.
⚙️ Innovation, learning, and experimentation with business models are crucial, especially in the pharmaceutical industry, and require patience.
📊 Measurement is important, especially in understanding the impact on both social and business aspects of a company.
🌍 Identifying unmet health needs and improving health systems require new skills and partnerships with unconventional relationships.
🔮 Continued work and innovation in business models can lead to significant changes in the way health is approached.
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