Alternative Recommendation Action Plan
Issues and Alternatives of Foamtec
The Profit loss, in term of the pharmaceutical industry, in foam production sector
According to the figure in the case study, which is provided, we can see that the annual sales for foam production, in year 2006 and 2007, will get a negative result. Our prediction, with this issue, is that the company cannot sell out much of bulk foams to other industries. Also, considering the market share of the company, in the pharmaceutical sector, the share of 40% profit margin tends to make the loss in production function. Moreover, the company is focusing more on the international basis for this section, which, in Thailand, the company only on lowering the cost of production only. Medical equipment that can be produced in Thailand is those that do not require any high technology. As a result, the quality of the product produce in Thailand tends to put the company in the difficult stage to compete with domestic market.
Market size of pharmaceutical industry As mention above, the size of the market in Thailand tends tend to be high. Since, there are so many players in this market (which are included B.K. Hospital Supply (Thailand) Co.,Ltd, Bangkok Advance Technology Co., Ltd, CMC Biotech Co., Ltd., G.E. Medical Systems (Thailand) Limited, J. Summit Co.,Ltd and M. Control Co., Ltd), the company may have less opportunity to sell their product.
Objective: The objective of the alternative planes is to increase more sales and demand from production. Also, increase the brand awareness of the company as well.
Alternatives:
1.1 Looking for the new market to expand Since the market in the domestic countries tend to be very narrow (80% imported product) which the company may only get the profit around 20%, our first strategy is to expand in the foreign market instead of domestic market.
1.1.1 Countries Choices Asia Market vs. U.S. Market
Asia Market
Asia becomes one of the most attractive markets for the pharmaceutical for some
The Profit loss, in term of the pharmaceutical industry, in foam production sector
According to the figure in the case study, which is provided, we can see that the annual sales for foam production, in year 2006 and 2007, will get a negative result. Our prediction, with this issue, is that the company cannot sell out much of bulk foams to other industries. Also, considering the market share of the company, in the pharmaceutical sector, the share of 40% profit margin tends to make the loss in production function. Moreover, the company is focusing more on the international basis for this section, which, in Thailand, the company only on lowering the cost of production only. Medical equipment that can be produced in Thailand is those that do not require any high technology. As a result, the quality of the product produce in Thailand tends to put the company in the difficult stage to compete with domestic market.
Market size of pharmaceutical industry As mention above, the size of the market in Thailand tends tend to be high. Since, there are so many players in this market (which are included B.K. Hospital Supply (Thailand) Co.,Ltd, Bangkok Advance Technology Co., Ltd, CMC Biotech Co., Ltd., G.E. Medical Systems (Thailand) Limited, J. Summit Co.,Ltd and M. Control Co., Ltd), the company may have less opportunity to sell their product.
Objective: The objective of the alternative planes is to increase more sales and demand from production. Also, increase the brand awareness of the company as well.
Alternatives:
1.1 Looking for the new market to expand Since the market in the domestic countries tend to be very narrow (80% imported product) which the company may only get the profit around 20%, our first strategy is to expand in the foreign market instead of domestic market.
1.1.1 Countries Choices Asia Market vs. U.S. Market
Asia Market
Asia becomes one of the most attractive markets for the pharmaceutical for some