Asian Food Importers

Jino Pullelathu Abraham

Q) Evaluate the situation in which Warner-Lambert now find itself.

Ans) Warner-Lambert is presently in a good situation. The company has good experience in its three industrial segments. The company had well laid out plan to tackle the recession and the company surpassed the situation smoothly. The company has spent a lot of money on Research and Development. So the company is always trying to be up to date with the developments taking place in its industry. The company also has good brand equity, so it would not be hard for the company to market its products. But the markets which the company is doing business is getting more competitive as many new companies are entering. The company is investing a lot of money in developing a medicine to fight Alzheimer's. In addition, the company is advancing its operations to other countries as well. Also the new drugs which the company is coming up are waiting for approval from FDA and also the competition is getting intense in its industry.

Q) How could the Boston Consulting Group matrix be used in identifying possible strategies for Warner-Lambert?

Ans) The Boston Consulting Group matrix helps in displaying the various business units on a graph of the market growth rate vs. market share relative to the competitors. The company has always invested heavily in medical fields, which would give a high rate of return for the company and company's bestselling consumer health care in mature markets. So typically, these products are in a Cash Cow situation, so they could keep on going on the way it is and could invest in the confectionery segment of the company or invest in R&D. In addition, the business environment around is not that promising, so they may end up losing money if not invested in proper ventures.

The company could also focus on the confectionery segment of the company, as it is a very fast growing industry and revenues could be earned in a large amount. But the company needs...