Pharmaceutical manufacturers for stomach-relief and cough syrup products are neatly divided into two distinct categories within the industry:  multinational pharmaceutical research and development companies who outsource their production requirements or who have in-house manufacturing facilities, and the small, independent pharmaceutical producers.

The multinational pharmaceutical R&D companies capitalize on their substantial research and development capabilities.  Their capital backing, brand recognition, advertising capabilities, sales budgets, and effective distribution channels keep their products on the shelves and in consumers’ minds.

The smaller, independent pharmaceutical manufacturers typically have a minimal research and development function consisting primarily of labs used to analyze products other companies introduce.  They are usually very small (less than 50 employees), and have limited manufacturing facilities.  They usually distribute locally or regionally, occasionally maintaining a regional account in another part of the country.  These companies often compete on price due to the limited scope of the their operations.  Value Drugs fits into this industry cluster of independent manufacturers.

The following table (Competitive Analysis) provides an overview of some of the key advantages and disadvantages associated with the three large multinational corporations, as well as for the competing independent manufacturers.