Teva Pharmaceutical Hbr

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Boston Consulting Group

Name: James Kinsley

ID: 5811732

Date: October 15, 2010

Presented to: Howie Pun

Course: Management 401

TABLE OF CONTENTS

INTRODUCTION 1

Situation Synopsis 1

Problem Statement 1

ANALYSIS 1

EXTERNAL ANALYSIS 1

Industry Structure 2

Industry Direction and Trends 2

Competitive Situation Analysis 3

Competitive Forces (Porter) 3

Competitor Analysis 3

INTERNAL ANALYSIS 4

Primary Activities (Value Chain Analysis) 4

R&D Analysis 5

Financial Analysis 5

EVALUATION OF ALTERNATIVES 5

Alternative Strategy 5

Alternative 1: Focus on Geographical Diversification 5

Alternative 2: Exploration of Niche and Biosimilars 5

Recommendation 6

Implementation 6

APPENDICES 7

Exhibit 1-3 7

Exhibit 4-5 8

Exhibit 6-7 9

BIBLIOGRAPHY 10

INTRODUCTION

Situation Synopsis

With markets opening up in developing countries, Teva will be embraced with new opportunities and ventures as well as serious threats from local low cost firms. Novartis one of many competitors of Teva has increased its presence with strategic acquisitions of generic firms that have the potential to further negatively impact the value of Teva’s share prices.

Problem Statement

As one of the largest firms in generic drugs manufacturing, Teva Pharmaceuticals will be faced with threats by firms from different segments of the pharmaceutical industry. In order to survive in this competitive industry, it must review its current strategy and be prepared to implement a revised one. Threats from global innovative firms, low-cost...