The Johns Hopkins Business and Consulting Club Informational Meeting Thursday, December 15

Wall Street Journal Defending Multiple Vioxx Cases is Costly Burden for Merck FDA Criticizes Boston Scientific over Quality Control Deficiencies Serono Discusses Selling to Glaxo at a Lower Price New Medicare Drug Benefit Sparks an Industry Land Grab As Pfizer Battles Fakes in China Nation's Police are Uneasy Allies

Entering a New Market Problem- Pfizer wants to enter into gene-based therapies Steps: 1- Determine why 2- Determine market state 3- Should we enter? 4- How we will enter

Entering a New Market Step 1: Determine why What is the goal/objective? Does it fit the overall strategy?

Entering a New Market Step 2: Determine the state of the current and future market What is the size of the market? What is the growth rate? Where is it in its lifecycle? Emerging, mature, declining Who are the consumers and how are they segmented? What is the technology and how fast does it change? How will competition respond?

Entering a New Market Step 3: See if entering market makes good sense Competition: Who? Market shares? Product Differentiation: Us vs competitor Comparable price? Substitutes available?

Entering a New Market Step 3 (cont’d) Entry: Barriers? (capital req, technology, gov’t app) Barriers to exit? What are risks? (market, regulation, technology)

Entering a New Market Step 4: Way to enter Market 1- Start from scratch 2- Acquisition- buy someone already in the industry 3- Joint venture- find someone else who wants to do the same thing

Industrial Analysis Problem: Disney wants to buy Pixar. Wants you to look into the computer generated film industry Steps: 1- Investigate current industry 2- Investigate suppliers 3- Future outlook

Industrial Analysis Investigate industry: Point in life cycle? Performance over 1,2,5, and 10 years Major players- market share Recent changes (new players, technology, regulations) What drives industry? (brand, size technology)

Industrial Analysis Step 2: Supplier considerations How many? Product availability What’s going on in their market?

Industrial Analysis Step 3: Future Outlook of Industry Are key players entering of leaving? Recent mergers and acquisitions? Barriers to entry exit?

How much does a fully loaded car carrier weigh? Estimation How much does a fully loaded car carrier weigh?

Estimation Parts: cab, carrier, cars Cars: 2,500lb x 8 cars = 20,000lb Cab: twice the size of car = 5,000lb Carrier: size of 2 cars = 5,000lb Total: 30,000lb (15 tons)

Meeting Details Location: Room 2-108, 1830 Bldg Time: noon-1pm Dates: 2006 (All Tuesdays) Jan 10&24 Feb 7&21 Mar 7&21 Apr 4&18 May 2&16