GROUP NO : 7 Submitted by: Radhika Goel: 10020241020 Anuj Meena: 10020241064 Supriya Bansal: 10020241113

What is global industry?

 Firms global presence
  

Position is affected from one country to another Global competitor Leader in its homer market

Market Factors

Cost Factors

Competitiv e Moves

Other environme ntal factors

 Participating in significant major markets

 

Offering a range of standardized products worldwide Configuring value-added activities across countries based on comparative advantage

 

Global marketing strategies Integrated competitive moves across countries

Technological Development

Manufacturing Development

Global Logistics

Competitive Response

Personnel and Government Relations

Global Environment 1.Competitive advantage 2.Proprietory technology 3.Superior manufacturing

The Industry 1.Stage of growth 2.Future prospects 3.Barriers to entry e.g Rayon industry

Firm itself 1.Value-added chain 2.Hostgovernment actions 3.Careful customer analysis and good suppliers

Good decision making

Adapt ability

Initial strategy

Goals

Domestic market

Global market Regulations and difference in customer needs

Government restrictions

Competitive pressures

Markets Technology , especially patents Production resources Competition Customers Governments The time factor : speed of response

Global strategy differs among multinational firms according to:

 

The dominant orientation is short term or long term. Profits and ROI are willingly sacrificed in return for higher market share.

Global or national competitive position is more important in determining competitive strategy and response.

Competing as a Low-Cost Producer

Competing with Differentiated Products

Competing by Seeking Protected Markets

 Extension of product lines in to new market segment Forward or backward integration by suppliers Product Lines Komatsu Emerge as a potential competitor Investment in R&D Hoffman-La-Roche Presence of existing competitors First mover advantage Toyota and Honda

New Product Market

Global Presence

Its a US unit , majority owned by its Norwegian parent A.L Oslo. Manufacturer and Distributer of Generic Pharmaceuticals and Animal Feed.

-A.L Oslo Develops BMD , an antibiotic mixed in feed to aid in animal growth. - BMD meets Human safety standards of the US food and Drug Administration and is accepted. - Penetration of BMD in the US poultry and Swine markets raised A L Labs share in the US market from 20% to 35% in 1988.

A.L Labs Develops its Premium Brand ColorGaurd Vitamin D3 , an essential nutrient required by livestock and poultry for proper health growth and health. Solutracin- water soluble conc. form of BMD for treatment of poultry diseases.

Acquired Dumex Ltd headquartered in Copenhagen, Denmark in 1985 and begins focusing on the distribution of the generic Pharmaceuticals Dumex developed a new drug Elyzol already registered in Europe. With its entry in the US too , A.L Labs developed opportunities of cross fertilization of new drug discoveries between Europe and the United States

It acquired ParMed for distribution of the gen. pharmaceuticals Efficient Telemarketing selling techniques at ParMed was a side benefit to the A.L Labs

In 1987 acquired Barre Labs for $100 mn which concentrated on the liquid pharmaceuticals

Important in two segments: 1. Geriatric (over 65) Market 2.

Pediatric(below 5) Market

Formulation of powdered milk products developed by Dumex and exported to Middle East and Far East. Dumex receives royalties from two subsidiaries of East Asiatic Company(EAC) of Denmark located in Malaysia and Thailand.

Sales in mil $ from 1985 to 1991

Human Nutrition, 229

Animal Health, 361

Animal Health Pharmaceuticals Human Nutrition

Pharmaceutical s, 869

70 60 Percentage Sales 50 40 30 20 10 0 1985 1986 1987 1988 Year 1989 1990 1991 US sales % Foreign Sales %

Less Investment in R&D Well Established Trade Mark Manufacturing Capabilities Less fear of Competition

Differentiation Value Added Activities Service Technical Marketing Presence in Multiple Markets

FINANCE INTERNAL PROCESSES MARKETS

Increasing Revenues Controlling Costs

Identify target and lobby partners Enable fast regulatory approval processes Assure a better sales force territorial management Search for local acquisition opportunities Operate as a distributor for other international generics companies

Acquisitions Global Brand presence and strong distribution network Technical Promotions Transition from existing branded products to generic products Selling to new segments

Competitive advantage Sales Growth Cross-fertilization

Brand Dilution Regional Integration Cultural Mismatch Increasing Risk

Currency Fluctuations

Dranish krone had appreciated against U.S. dollar. Import costs increased

Medicare Catastrophe Coverage Act 1988 Industry Growth Prospects