Market Entry Modes

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

Joint ventures can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation".

Developing and emerging markets present several challenges, which need to be overcome by multinational Pharma firms. Pharmaceutical managers consider market access to be their most important challenge.

* Barriers to Entry. A number of factors allow a pharmaceutical manufacturer to act as a

The company then decides on a market-entry strategy. This typically entails four avenues of entry into the international market. A). Market entry may be handled through exports, directly or indirectly. Internet sales and direct selling

Research and development teams will have to identify what is important to the stakeholders and develop products that have value for the stakeholders. If the company does not have the resources or capabilities to develop the products that stakeholders value, acquisitions must be made. Companies will need strong marketing and sales departments that will be able to develop messages that are targeted at all of the stakeholders, not just patients and physicians. The marketing and sales department must develop strategic messages that contain strong economic and clinical value messages instead of feature and benefits messages that are currently used. Since biopharmaceutical companies tend to use product differentiation as strategy to offer unique value, instead of cost, it might be necessary for them to develop partnerships with companies that provide patient support and resources to add value to their

“A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Joint ventures are also widely used by companies to gain entrance into foreign markets.” (Cornell University Law School) In way to engage ones customers with new stuff, joint venture has become paramount in satisfying customers with variety and also infuse modernization and advance technology. An example is the introduction of the popular video streaming website “HULU” created by a joint venture in the year 2008 by NBC Universal Television Group, Fox Broadcasting Company and the Disney –ABC Television Group. This venture

The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:

Global pharmaceuticals had presence in India since early 80’s and it was not until 1993 that Eli Lilly International decided to establish a Joint Venture with India’s second largest laboratory and exporter, Ranbaxy. This move happened in a very challenging context as both companies have very different profiles and backgrounds. The main differential characteristic was the nature of their products. While Ranbaxy was focused on generics and in other intermediate products, Eli Lilly International core business was the commercialization and development of new drugs through an aggressive R&D strategy. The trigger for Eli

The biopharmaceutical industry has historically been dominated by large companies. The threat of new entrants is low, but not impossible. The main path for entry into this market is through development of novel new drugs. New entrants are limited to this method of entry due to patent thickets surrounding incumbent drugs. The largest barrier to entry for companies attempting to enter the biopharmaceutical industry is high research and development costs. Not only must new firms develop and test new therapies, but they must also obtain approval from regulators in order to bring their products to market. Approval of a new drug requires highly capital intensive clinical test in addition to navigating a heavily bureaucratic approval process. The process is time consuming and

In pharma industry the raw materials mainly consist of organic chemicals. The need of different organic chemicals depends on the chemical formulae of drug. Pharmaceutical industry depends on various different organic chemicals for the production of end drugs. The chemical industry itself is very competitive and also very fragmented because their products (organic chemicals) are standardized and steps to produce them are also standardized. The chemicals used in pharma industry are commodity as pharmaceutical companies do production on economies of scale to lower the cost. The suppliers have low bargaining power because companies can switch to a new supplier without incurring a high cost. But there is a threat from supplier if it decides to go for forward integration and become a pharma industry

Firstly, it is important to remember the current situation of Trader Joe’s in USA, the company has over 400 stores in 30 states and is the leader in customer service in USA. However, the company is not on the top ten supermarkets in sales category. Additionally, Trader Joe’s just operates in USA and does not have experience in other international markets. (Peterson, 2013)

Pharmaceutical industry, the discovery, development, and manufacture of drugs and medications (pharmaceuticals) by public organizations and private organizations .Pharmaceutical companies may deal in generic or brand medications and medical devices . The pharmaceutical industry is responsible for the development, production and marketing of medications. Thus, its immense importance as a global sector is inarguable. In 2014, total pharmaceutical revenues worldwide had exceeded one trillion U.S. dollars for the first time. North America is responsible for the largest portion of these revenues, due to the leading role of the U.S. pharmaceutical industry . Sun Pharmaceuticals Industries Limited plans to acquire 85.1 per cent stake in Russian company Biosintez for US$ 24 million for increasing its presence in Russia through local manufacturing capability.

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.