Scribd Logo
Upload

Welcome to Scribd!

  • 204 views

    Kevin Kato Fischer Swot Analysis 2

    Uploaded by

    Kevin Kato Fischer
    The presentation provides an in-depth analysis of Teva's current situation and strategies, concluding with recommendations for future growth. It analyzes Teva internally, as well as the external environment. Key points analyzed include Teva's strengths in manufacturing and acquisitions, and weaknesses in reliance on few products. Externally, opportunities include many upcoming patent expirations and under-tapped niche markets, while threats include increased competition. The presentation recommends Teva expand globally into deregulating markets and increase specialization in niche generics, leveraging existing relationships and competencies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Kevin Kato Fischer Swot Analysis 2

    Uploaded by

    Kevin Kato Fischer
    204 views19 pages
    The presentation provides an in-depth analysis of Teva's current situation and strategies, concluding with recommendations for future growth. It analyzes Teva internally, as well as the external environment. Key points analyzed include Teva's strengths in manufacturing and acquisitions, and weaknesses in reliance on few products. Externally, opportunities include many upcoming patent expirations and under-tapped niche markets, while threats include increased competition. The presentation recommends Teva expand globally into deregulating markets and increase specialization in niche generics, leveraging existing relationships and competencies.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The presentation provides an in-depth analysis of Teva's current situation and strategies, concluding with recommendations for future growth. It analyzes Teva internally, as well as the external environment. Key points analyzed include Teva's strengths in manufacturing and acquisitions, and weaknesses in reliance on few products. Externally, opportunities include many upcoming patent expirations and under-tapped niche markets, while threats include increased competition. The presentation recommends Teva expand globally into deregulating markets and increase specialization in niche generics, leveraging existing relationships and competencies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    204 views19 pages

    Kevin Kato Fischer Swot Analysis 2

    Uploaded by

    Kevin Kato Fischer
    The presentation provides an in-depth analysis of Teva's current situation and strategies, concluding with recommendations for future growth. It analyzes Teva internally, as well as the external environment. Key points analyzed include Teva's strengths in manufacturing and acquisitions, and weaknesses in reliance on few products. Externally, opportunities include many upcoming patent expirations and under-tapped niche markets, while threats include increased competition. The presentation recommends Teva expand globally into deregulating markets and increase specialization in niche generics, leveraging existing relationships and competencies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    Presentation Agenda

    Purpose: To provide an in depth analysis of Tevas current situation and strategies concluding with recommendations for future strategy and implementation for continued growth. Structure of Analysis: I. Internal Analysis Present Situation, Financial Resources, Strengths and Weaknesses II. External Analysis
    General and Operating Environment Competitive Forces & Strategy Opportunities and Threats

    III. IV. V. VI.

    Key Decisions Alternative Strategies Recommendations Implementation & Evaluation

    Present Situation
    World leading producer of generic pharmaceuticals Current products:
    Generics: Zocor, Zoloft Innovative: Copaxone, Azilect

    Current generic market share:


    18% of U.S. generic market Significant presence in U.K. and the Netherlands Small presence in Germany, France, Japan

    Increasing competition in authorized generic market Financial Position:


    Cash flow from operations for 2006 was over $2 billion Net sales for 2006 reached $8.4 billion, a 60% increase over 2005 2007 Outlook Net sales to exceed $9 billion

    Strengths
    IMPORTANCE
    Low cost manufacturing strategy esp. supply chain Acquisition capability size & global footprint Highly efficient Paragraph IV pipeline Strategic relationships
    National pharmacy chains Israeli academic institutions (R&D)

    Weaknesses
    Increasing diminishing returns on acquisitions Heavy dependence on U.S. market Over reliance on few products Copaxone: 11% of revenue Small R&D Budget

    Market leader in U.S. generics Backward integration active pharmaceutical ingredients

    General Environment
    Increasing acceptance of generic drugs worldwide Increasing health care costs Aging population esp. North America and Japan Developing markets Commodity nature of industry

    Operating Environment
    Current Customers: Generic Drug Market
    Pharmacies Doctors (physiciandriven markets) Governments
    Region % of Sales

    North America
    Europe and CIS Israel Other countries

    64%
    26% 6% 4%

    Target Customers: Developing markets Latin America, India, China Biosimilar/Niche generic and/or innovative drug markets

    Competitive Forces
    Potential Entrants: Big Pharma (generics) MEDIUM

    Suppliers: Chemical companies LOW

    Competitors: Big Pharma Sandoz, Barr, Mylan, Ranbaxy, etc.

    Buyers: Pharmacies Governments Doctors MEDIUM-HIGH

    Substitutes: Authorized generics Other generics Brand name drugs HIGH

    Competitive Group Analysis


    Big Pharma Teva U.S. Focus on Customers Other Generics U.S. Focus on Competitors Low High Big Pharma Teva Other Generic companies Low

    Quality Perception

    Teva Japan

    Other Generics Japan

    Price

    High

    Competitive Strategy
    Teva Traditionally cost leadership Focused on national pharmacy chains Growth driven by systematic acquisitions Supply chain/ manufacturing scale advantages Big Pharma Differentiation Focus on markets by drug purpose Heavy investment in R&D Higher margins
    Other Generic Companies

    4th generic strategy Mimicking TEVA

    Opportunities
    Many blockbuster patents expiring in near future Potential consolidation in global generic market Niche and biosimilar markets largely untapped Decreasing government regulation in Asian markets Developing markets need for low cost health care Europe opening up to generic drugs Innovative pharmaceutical markets

    IMPORTANCE

    Threats
    New low-cost entrants from India and Eastern Europe Increasing competition for authorized generic drugs Big Pharma plans to enter generic markets Increasing complexity in drug formulations Erosion of generic drug prices in the U.S. IMPORTANCE

    Analysis of Environmental Trends


    - New entrants from India and Eastern Europe - Big Pharma plans to enter generic markets - Increasing competition for authorized generic drugs - Global demand for generics increasing - Innovative pharmaceutical markets - Increasing complexity in drugs - Niche and biosimilar markets largely untapped

    Impact

    High

    - Erosion of generic prices in the U.S.

    - Many blockbuster patents expiring in near future

    Low

    Low Probability of Growth

    High

    Key Decision
    How to expand in the future? Continue U.S. and similar market consolidation Expand into global branded generic markets
    Large, established markets (Japan, Germany, France) Emerging markets (Latin America, Asia)

    Increase specialization
    Niche and biosimilar generic drugs Innovative drugs

    Or some combination

    Continue consolidation in U.S. market


    Pros Streamlines the market Savings through synergy Increased scale/production Less price competition Easily add products/markets Cons Increased anti-trust risk Incompatible networks Increases G&A expenses Declining prices for commodity generics

    Expand into Emerging Markets


    Pros Large potential market Rapidly growing prescription market in Latin America Current core competencies match market needs Ivax acquisition included access to Latin American markets
    Cons

    Expand into large, established markets


    Pros Instant access to: High usage of prescription drugs Higher price point Cons Physician based system Prefer name brand products
    Harder to enter High sales cost Large Populations Wealthy Population

    High competition from local companies (i.e. Ranbaxy in India) Highly regulated markets

    Niche and biosimilar markets


    Pros Higher margins than current commodity generics Untapped segment of generic market Rapid growth expected and increasing importance Very few competitors
    Cons

    Innovative Drugs
    Pros 100% market share Portfolio growth and diversity High profitability over longer period Cons Heavy capital & R&D investment High risk of failure Different business model than generics

    Higher production costs Higher initial capital requirements Require physician prescription Regulations in U.S. undecided Sandoz first to market in Europe

    Recommendations
    How to expand in the future? Maintain market share in U.S. Expand into global markets that deregulating to become more pharmacist driven Follow CVS and the like into emerging markets Increase specialization into niche and biosimilar generic drugs

    Implementation Challenges
    Unknown Factors
    New Markets

    Production
    Estimating production for emerging markets

    Price
    Creating a proper pricing models for various markets

    Implementation
    The prior recommendations take into account the Strength, Weaknesses, Opportunities and Threats. TEVA should partner with large national pharmacy chains to enter emerging markets. Further TEVA should enter developed markets as they deregulate to pharmacist driven markets. TEVA should also take advantage of its current relationship with academic institutes in order to create niche and biosimilar product, which have a lower R&D cost than innovative products.

    Evaluation
    TEVA should evaluate generic sales on a quarterly basis for each country they sell to. Research should be done to gauge:
    Consumer reaction to the introduction of generics in markets Consumers expectations of appropriate price, placement, and quality

    Questions?

    You might also like