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copmany postion and there insight

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3 views

SM assignment 1 )

copmany postion and there insight

Uploaded by

Jack Son
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Business Case: Strategic Challenges at Beximco Pharmaceuticals Ltd.

Company Background

Beximco Pharmaceuticals Ltd. is one of Bangladesh’s leading pharmaceutical companies, known


for its wide range of generic drugs that cater to both the local and international markets. With an
established presence in developed markets like the U.S., UK, and EU, Beximco has built a
reputation for affordable, high-quality healthcare solutions. The company’s success has been
driven by its focus on cost-effective production and exports of generic medicines, covering
therapeutic areas such as cardiology, antibiotics, and respiratory treatments.

However, as the pharmaceutical industry continues to evolve, Beximco is facing increasing


competition and challenges that could affect its future growth. The company’s strategic
approach, heavily reliant on generic drug sales, is now under pressure due to changing global and
local market dynamics.

Case Problem

Beximco Pharmaceuticals is at a crossroads. The company faces a strategic challenge in


balancing its core focus on generic drug production with the need to diversify and innovate. The
key question Beximco needs to address is: How can the company adapt to remain competitive
while expanding its product portfolio and exploring new market opportunities?

Key Issues to Consider

1. Intense Global Competition in Generics


o The global generics market has become highly competitive, with manufacturers
from India, China, and other emerging economies entering the scene, creating
downward pressure on prices and margins.
o Competitors are also strengthening their regulatory standards, making it harder for
Beximco to differentiate based on quality alone.
2. Dependency on Generics
o A substantial part of Beximco’s revenue comes from generic drugs, which are
vulnerable to price erosion and market saturation.
o With generics being easy to replicate, this dependence could limit the company’s
long-term growth and profitability.
3. Regulatory Compliance in Developed Markets
o Beximco’s export markets, such as the U.S. and EU, impose strict regulatory
standards that require continuous investment in quality and compliance.
o Maintaining these standards is expensive and complex, adding pressure to the
company’s operations.
4. Increasing Local Demand for Advanced Treatments
oThe Bangladeshi market is evolving with a rising demand for innovative
treatments, biologics, and specialty medicines. This shift requires Beximco to
expand beyond its traditional focus on generics.
5. Limited R&D for Innovation
o Beximco’s focus on generics has limited its R&D capabilities in developing
patented or specialized drugs, which typically require significant investment and
expertise.
o Diversifying into new therapeutic areas would necessitate increased spending on
R&D, partnerships, or acquisitions, which could impact cash flow.

Strategic Options

Consider these potential strategies that Beximco could explore to address its challenges:

1. Investment in Biologics and Specialty Medicines


o Should Beximco shift its focus from traditional generics to high-value specialty
medicines and biologics?
o This move would require investments in R&D and possibly partnerships with
biotech firms.
2. Diversifying the Product Portfolio
o Expanding beyond generics to offer over-the-counter (OTC) drugs, branded
generics, and specialty products in high-demand therapeutic areas could create
new revenue streams.
o Should Beximco pursue these opportunities to reduce dependency on generics?
3. Strengthening Compliance and Regulatory Capabilities
o Enhancing its compliance infrastructure could help Beximco stay ahead in
regulated markets and reduce the risk of costly delays in new product launches.
o Would investing in these areas give Beximco a sustainable competitive
advantage?
4. Increasing R&D Investment through Partnerships
o Partnering with universities, research institutions, or other pharmaceutical
companies could provide Beximco with access to new technologies and expertise.
o Could such partnerships offer a viable solution for expanding R&D without
excessive capital expenditure?
5. Expanding into New Geographic Markets
o Rather than focusing solely on heavily regulated markets, Beximco could explore
underpenetrated, emerging markets with less competition and lower regulatory
barriers.
o Is this a feasible approach to increase market share without significant regulatory
hurdles?

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