Product details

This case study applies corporate strategy analysis to the pharmaceuticals industry. SmithKline Beecham's (SB) corporate strategy over the past ten years is analysed in terms of global pharmaceutical industry forces and strategic responses by other pharmaceutical companies. Generic strategy categories are used to classify strategic responses, including; vertical integration, diversification, co-operation, consolidation and focus. Mergers, involvement in the biotech industry, prescription-to-OTC switches, and entry and exit from the managed care industry are corporate strategy responses that are identified. The success of corporate strategy appears to depend largely on the strength of business-level strategy in creating the potential for internal reorganisation and ongoing learning. Some ethical issues relevant to corporate strategy are raised in an attempt to sensitize students and practitioners to the inter-relatedness of these considerations. Major changes in the global pharmaceutical industry, particularly in relation to recent withdrawals from managed care and speculations regarding mergers, necessitates ongoing analysis.