"Personally, I feel that companies who constantly innovate to provide better products and services and who can offer superior value propositions to the consumer are the ones likely to command more respect globally than others”
Malvinder Mohan Singh, former CEO and MD, Ranbaxy Laboratories Ltd
Table of Contents Executive Summary 5 The Company 5 Hybrid Business Model 6 Porter’s Five Force Analysis 7 Bargaining Power of Buyers 8 Bargaining Power of Suppliers 9 Threat of New Entrants 10 Threat of Substitutes 11 Threat of Rivalry 12 Value chain analysis 13 Inbound logistics 13 Operations 13 Outbound logistics 13 Sales and marketing 13 Service 14 Procurement 14 Technological Development 14 Human Resource Management 14 Firm Infrastructure 14 VRIO Analysis 16 Internal Analysis- A Resource Based View 16 Factors Leading to Growth 18 Strategy 18 Business-level Strategy 18 Focus on Differentiated Products 18 Corporate-level Strategy 20 R&D in Ranbaxy 20 NDDR – A separate Entity Decentralization 20 First Mover Advantage 20 Information Security and Information Synergy 21 Acquisitions 21 Agreements and Collaboration 22 Recommendations 22 Medium term Strategy (5-7 years) 23 Long term Strategy (10-15 years) 25 References 26 Exhibit 27 I. Market Share 27 II. Market Structure & Herfindahl-Hirshman index 27 IV. Market Forecast 31 V. Competitor Analysis 31 VI. Ranbaxy Financials 32 VII. Pharmaceutical Industry Future 33 VIII. Conservation of energy and its impact 37
Executive Summary
Product patent regime implemented in India from Jan 2005 compelled Indian pharma companies to relook in to their marketing strategies so as to become competitive & strongly withstand in the competition with MNC’s & big giants in domestic markets. Product patent regime posed Indian pharmaceutical companies to change their strategies. If the Indian