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Discuss...
Which generic competitive strategy/strategies did Teva
use to become more competitive in the pharmaceutical market?
What were the benefits and risks of each approach they used?
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Case Study Assignment: Strategies
Giving Teva Pharmaceutical Competitive Advantage
Introduction
Teva
Pharmaceutical was Israel’s first actual multinational and one of the leading
global producers of generic pharmaceuticals. The company utilized a focused approach
as opposed to old traditional conglomerate ideals resulting to the growth of
business revenues to $8.5 in 2006 from $91 million in 1985 (Khanna et al., 1). However,
in 2006, due to increased industrial competition the company experienced a 30%
plunge in stock value resulting in a significant loss in market capitalization.
Even so, the success realized by the company relied on the implementation of different
strategies that included mergers and acquisitions, expansion plans, development
of competitive advantage, reconfiguration of supply chain and creation of
innovative business.
Expanding Abroad
To gain competitive advantage, Teva expanded its operations into the American market. The company made the United States its priority because it represented a single market as opposed to European countries that embodied a patchy market. For Khanna, et al. (9) a...
