A Pioneer Sales Organization in the Japanese Pharmaceutical Industry:

A Case Study of Hoshi Pharmaceutical Company

Abstract

The purpose of this article is to analyze how the sales organization—Hoshi Pharmaceutical Company—was established and developed in the prewar Japanese pharmaceutical industry. An analysis of this achievement is very useful for explaining the process by which the distribution “keiretsu” was formed in the Japanese pharmaceutical industry.
It was during the period of high economic growth that the distribution keiretsu was introduced in the Japanese industry in earnest. However, the distribution keiretsu had already been introduced by some pioneer companies before the outbreak of the Pacific War. Some of the companies belonged to the pharmaceutical industry.
We consider Taisho Pharmaceutical Co., Ltd. and Takeda Pharmaceutical Co., Ltd. as the pioneer companies that introduced the distribution keiretsu in the prewar Japanese pharmaceutical industry. However, it is necessary to study another key company—Hoshi Pharmaceutical Company—in addition to these two companies when we attempt to clarify the origin of the distribution keiretsu in the industry. This is because it is understood that Hoshi Pharmaceutical Company was the pioneer that first introduced the distribution keiretsu in the industry.
This article analyzes the period from 1906 to around 1923-1924, because during this period, the sales organization of Hoshi Pharmaceutical Company operated to a large extent and functioned most effectively.