Getwell Pharmacy: Partner or Perish

In May 2022, Getwell Pharma India Private Limited was an independent neighbourhood pharmacy in Amritsar, India. Pharmacy retail in the country was largely dominated by traditional independent stores, until the emergence of pharmacy chains and e-pharmacies with scale advantage, extensive financial resources, large numbers of stock-keeping units, store brands, and new technology. These changes were making traditional pharmacies less attractive to customers, who were increasingly asking for heavy discounts to match those of the new competitors. However, the discounts were not manageable for independents that were positioned at the end of a long and fragmented supply chain and stuck with limited margins. As a result, Getwell Pharma India Private Limited was losing its customer base, despite offering quality products and services. With revenues and profits falling, should the company consider allowing a major competitor to absorb the business?