The world is a cold place these days for businesses seeking profitable international growth. In a few industries, firms have to be global if they are to achieve leadership. Implementing a global expansion strategy is crucial to the growth of a business from small start-up to international brand name. Companies such as McDonald's, Home Depot, Starbucks and more have made their presence known around the world over the past few decades. However, each global expansion presents its own set of obstacles which the parent company must tackle, in order to be successful in their global expansion.
In a borderless world, companies need to compete on a global level in order to ...view middle of the document...
There has been more M&A activity in the biotechnology, pharmaceuticals, and health care sectors during 2008-2009, but slightly less in 2010. However, the big M&A deal to watch in 2011 will be the outcome of Sanofi-Aventis [SNY] and Genzyme [GENZ]. The Sanofi-Aventis and Genzyme deal may be the largest deal of the year in the industry.
In our report, we will focus on the global expansion strategy of sanofi-aventis Bangladesh Limited, the one the 110 affiliates of the global health care company Sanofi.
Global Pharmaceutical Market
The pharmaceutical industry is a multi-billion dollar industry with about 200 major companies making it up. One company does not control an overwhelming portion of the market share, though the most profitable companies control a share in the mid-to-high single digits. The pharmaceutical market spans a spectrum of drugs and medication, including prescription, generic and over-the-counter drugs.
The birth origins of the Pharmaceutical Industry can be traced back to more humble antecedents than just chemistry labs. The earliest incident of recognition of the antiseptic properties of the dyestuffs is around the late 19th century. The invention of penicillin can yet be recognized as a major milestone for the emergent industry which firmly consolidated its R&D efforts in the 1950's. Further in the 1960's the patent regulation support gave a further impetus to the industry in new discoveries and relaxed controls on clinical development with the booming spend on healthcare as economies boomed globally.4 The industry comprises of the companies that make, patent and sell drugs that therapeutic effect
The global presence of the pharmaceutical industry is evident with the roll out of continent specific R&D programs and drugs which help companies maximize penetration of markets and garner increased revenues with inter continental treatment demand of patients being serviced from often one or two mega research centers in the continent. By contribution of size, the pharmaceutical industry is majorly dominant at the US, Europe and Japan. Led by these markets, the total world consumption in sales of pharmaceutical products has displayed strong growth and is expected to grow further with expanding populations in emerging markets.4
IMS Forecasts the Global Pharmaceutical Market Growth of 5-8% annually through 2014 which has maintained expectations of 4-6% Growth in 2010. IMS Health reported today that the size of the global market for pharmaceuticals is expected to grow nearly $300 billion over the next five years, reaching $1.1 trillion in 2014. “Patient demand for pharmaceuticals will remain robust, despite the ongoing effects of the economic downturn being felt in many parts of the world,” said IMS’s Murray Aitken, senior vice president, Healthcare Insight. “In developed markets with publicly funded healthcare plans, pressure by payers to curb drug spending growth will only intensify, but that will be more than...