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

2. 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

3. 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

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

5. 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?

6. 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?

7. 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)

8. 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

9. 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

10. 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)

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

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

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

14. 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)

15. 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& May 2&16