SWOT: Genzyme in China Strengths Weaknesses International capabilities

Slides:



Advertisements
Similar presentations
By: K. Venkat Swamy M.B.A., B.Ed., (ICWAI) Accounting and Business Studies Faculty Ph UNIT – 7 BUSINESS.
Advertisements

Presented by Supply Management By: Leigh Podolak Presented by Source One Management Services, LLC Lesson 1 Roles.
The Strategy of International Business
Strategy in the Global Environment
STRATEGIC MANAGEMENT SESSIONS & SEMINARS November 29 – December 13, 2012.
IT Outsourcing Advantages Labor Low Cost Definition/Overview Try & expenditures by 30% Competitive Advantage Trends Core competencies Gov’t outsourcing.
Strategies for Competing in International Markets
The Importance of Business Planning for a Venture
SWOT Analysis (C) Krystle Attard  A situation analysis where internal strengths and weaknesses of an organization are examined in line with potential.
SUCCESS FACTORS IN THE PHARMACEUTICAL MARKETPLACE
SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis
Ms. Hanan Hayat. Environmental Scan /\ Internal Analysis External Analysis / \ Strengths Weaknesses Opportunities Threats | SWOT Matrix.
SWOT Analysis. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal.
1 © NOKIA FILENAMs.PPT/ DATE / NN Managing Nokia’s R&D in China Ramalingam Hariharan Country Manager Nokia Research Center, Beijing.
Strategy A View From the Top Chapter 8 – Global Strategy Formulation Larin Sanders Ivan Salazar Brian Davis.
Strategic Management Process
Conduct your own SWOT analysis A BNET Professional Development Tool Version 2.0 January 29, 2007.
Management Basics. What is Management ??? Is the process of using what you have { RESOURCES }, to do what you want to do …. {GOALS}
Professor Song CHEN, Ph.D. Deputy Dean, School of Economics & Management Tongji University Oct. 7, 2013 The Changing National.
BUSM1227: International Business: Entry Modes (II)
GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
CHAPTER 7 STRATEGY AND STRATEGIC MANAGEMENT
Business and its Environment
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY u Strategy content includes the strategic options available to companies u Multinational companies.
Can Ireland Secure its Competitive Edge? Don Thornhill, Chair National Competitiveness Council ISME Conference 19 th - October 2007.
FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
PowerPoint Presentation by Charlie Cook Gordon Walker McGraw-Hill/Irwin Copyright © 2004 McGraw Hill Companies, Inc. All rights reserved. Chapter 7 Partnering.
WIPRO : A STRATEGIC PERSPECTIVE
Copyright © 2004 South-Western. All rights reserved.9–1 COOPERATIVE STRATEGY.
SWOT ANALYSIS.
Business Policy and Strategy Lecture Recap MEANS FOR ACHIEVING STRATEGIES – Joint Venture – Mergers and acquisitions – Leveraged Buyouts (LBOs)
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P March 25, 2009 – Advanced Manufacturing Summit NIST MEP MEP Growth Framework: Sustainability.
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY Strategy content includes the strategic options available to companies –multinational companies.
A centre of expertise in digital information management UKOLN is supported by: University of Bath Roadmap for EPSRC Catherine Pink Institutional.
SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis.
STRATEGIC CAPABILITY By: Vedika Saraf Swagata Giri Yukti Agarwal Vikram Pesswani Vivek Sood Srishti Seth Sumalya.
A scan of the internal and external environment of a farm
SWOT Analysis A tool for situational analysis
SWOT as a Strategic Management Tool
International Business Strategy 301REN Unit: 3 Knowledgecast: 2 The Strategic Environment Environmental Analysis.
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY Strategy content includes the strategic options available to companies –multinational companies.
IT Strategy Jerry N. Luftman.
“Business has only two basic functions - marketing and innovation.” - Peter Drucker.
1 8 Strategy in the Global Environment. 2 Related Concepts/Theories Theory of comparative advantage – a country is ahead, and all other country’s benefit,
The Situation Analysis - SWOT Anthony Santella Tulane University School of Public Health.
SWOT analysis Draft version Photonics21 work group 1 SWOT analysis.
1 UNIT 6: STRATEGIC ANALYSIS: EXTERNAL ANALYSIS. 2 Two sets of factors primarily shape a company’s strategy: -External factors (macro environment, industry,
REGIONAL INNOVATION NATIONAL PROSPERITY Presented by Charles J. Brown III HRQMC Regional Agenda.
To Engage Your Customers With Your Brand Identity That Makes An Impact And Leave Your Imprint On The Market Break Through The Barriers That Block The Way.
Cooperative Strategy Cooperative Strategy
Digital Inspiration Strategy for Scotland’s Digital Media Industry.
People Capability Maturity Model (PCMM)
THE ROLE OF SWOT ANALYSIS
MBA 563 Dr Mukaro  Direction and scope of an organisation over a long period of time which achieves advantages in a changing environment through.
Growth in East Asia: Innovative Firms in Dynamic Cities Shahid Yusuf World Bank DECRG February 18, 2004.
Research, Business and Innovation Professor Stephen Hagen Director.
SWOT analysis.
International Business Strategy 301LON
SWOT ANALYSIS.
Collaboration Strategies
The Business Environment B200 Understanding Business Behavior
CHAPTER 9 Cooperative Strategy
SWOT analysis.
BUS662 SMALL BUSINESS CONCEPTUAL ISSUES. Learning Outcome: To conduct environmental analysis and thereby analyse requirements of a strategic Chapter 3:
SCM-655: Global Supply Operations Strategy
Evaluating the Company’s Internal Situation
Marketing Strategies in HealthCare & Pharmaceuticals
Operations Management Introduction to operations Management 1.
International Strategy
Topic 2 : Cross Border Interdependence : Growth of Strategic ship Technology Partnership.
Presentation transcript:

SWOT: Genzyme in China Strengths Weaknesses International capabilities Reimbursement system Effective drugs Reputation Industrial leader Expensive drugs Healthcare systems Resource focus Opportunities Threats Biotech vs. Pharma reputation Global pioneer Emerging markets Political uncertainity Expensive distraction IPR protection

SWOT: China’s biopharma industry Strengths Weaknesses Governmental support Investments in R&D Business culture Low cost structure Supplier and distribution networks IPR protection Management skills Brand names Infrastructure Small biotech industry Opportunities Threats Partnerships and collaborations Domestic market in growth Process improvements Generics & biosimilars Traditional medicine Stem cell cure Regulatory framework and enforcement Investment barriers Reputation

Model Framework Environmental Scan Internal Analysis External Analysis Strengths Weaknesses Opportunities Threats SWOT Matrix System Dynamics China’s Industry Genzyme Scenario analysis Strategies

Hypothesis ROW 1 CHINA 1 ROW 2 CHINA 2 Orderly index Not only China is moving towards anarchy The rest of the world is deteriorating slowly Time

Orderly State CHINA ROW Orderly The Dragon Best case scenario Orderly Isolation Marginal Worst case scenario Anarchy Orderly Anarchy ROW

Competitive Cost Advantage B Low Cost GDP & Salaries Cost savings on their own are not the primary considerat ion for biotech and pharma industry Chinese competitors’ capabilities Process Innovation D C Innovators/IPR Domestic Markets Global platform Genzyme (Strategy)

R&D engagement Make captive Remain Investmets in-house In China Strategic importance Driver of competive advantage IP risks -Regulatory risks -Operational risks Invest to Improve feasibility Outsource to China Feasibility Availibility of reliable vendors Ease of technology transfer Interdependcy Well defined activity

SWOT Matrix Best case Strengths Weaknesses Opportunities Threats S-O Strategies 1. Partner & Aquire 2. Use China as strategic lever for helping companies achieve China ambition 3. Lab works and clinical trials will halve the rentals, wage bills and Overhead 4. Companies set up new vendor Relations, R&D facilities, research alliances W-O Strategies 1.Get Excellent lawyers and translators 2. Reduce transactions costs involved 3. Relocate the necessary Western staff, importing equipment and supplies 4. Ensure good maintenance of that equipment Threats S-T Strategies 1. External foreign companies 2. Try to increase productivity and security (reduced productivity in the short term) 3.Use brand 4.Use the legal system W-T Strategies 1. Do not reveal complex manufacturing process 2. Trade secrets & Patents 3. Keep propritary assets secret for foreign companies 4. Keep government notified

SWOT Matrix Worst case Strengths Weaknesses Opportunities Threats S-O Strategies 1. Capture some output of trained science graduate 2. Invest in a very large pool of talents of local talents 3. Set up new vendor relations W-O Strategies 1. Language 2. Culture 3. Scientific skills Threats S-T Strategies 1. Companies set up new vendor relations 2. Invest in a very large pool of talents of local talents 3. Investmensts in R&D 4. The high output of trained science graduate students W-T Strategies 1. Fraction the know how 2. Penalty system 3. Defensive strategies...

Recommendations Genzyme should enter the Chinese market carefully and learn from the experience: Productivity will be threatened in the short term in unfamiliar countries hiring local staff , extra challenges bridging differences in business and technical practices regulatory and legal requirements and culture and language Has the chance to help shape the future of the Chineses health care market and to consolidate their own position within it Can contribute to the discussion on reforming the health care system; they can expedite the implementing of highest quality standards for innovative drug discovery and development by building strong relationships from the outset with key opinion leaaders and officia, an MPC will improve its chances of faster approvals, advantageous pricing and speedier access to the market. Trangenics and stem cell reseach

Extra: The Strategic game Labor costs and overhead Scientific talent and managent capability Quality control during development phases Regulatory barriers in clinical trials The flow of returnees trained in the west helps to invigorate the nations scientic communitiy IPR security Select areas of activity and research topics

Extra: Odds looking good 1 A very large pool of talents of exandably looking good Investments in R&D expandable High output of trained science graduate students more than US In a few years more graduates than the US in lifesciences in medecine It has reasonably advanced in clinical trials and lower complexity chemistry work Less so in preclinical and biology based drug discovery

Extra: Odds looking good 2 Companies set up new vendor relations, R&D facilities, research alliances Productivity and is threatened in unfamiliar countries hiring local staff , extra challenges bridging differences in business and technical practices regulatory and legal requirements and culture and language The more R&D that MPCs conduct in China (as long as they do it sensitively and efficiently) , the more opportunity they have to help shape the future of the Chineses health care market and to consolidate their own position within it. Specifically they can contribute to the discussion on reforming the health care system; they can exedite the implementing of highest quality standards for innovative drug discovery and development. They can encourage the develoment of new technologies that are shunned by other governements (such as trangenics and stem cell reseach); they can expand their alternative sources of comounds by investigating traditional Chinese medicine with the techniques of modern drug discovery; and through various well chosen research undertakings, they can gain ear and confidence of government officials, hospital administartors and key oinion leaders, thereby enhancing their market prospects The last point needed to be made to be kept very much in mind by MCs when they devise their China strategies: by building strong relationships from the outset with key opinion leaaders and officia, an MPC will improve its chances of faster approvals, advantageous pricing and speedier access to the market. The surest way to build such relationships is to show commitment – both for the long haul and to the advancement of China’s own R&D capabilities. Making captive investments demonstrates commitment of the first deepening involvement throughout the value chain demonstrates commitment of the second kind.

Extra: SWOT Matrix S-O strategies pursue opportunities that are good fit to the company’s strengths W-O strategies overcome weaknesses to pursue opportunities S-T strategies identify ways that the company can use strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the company’s weaknesses from making it highly susceptible to external threats.