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The Indianpharmaceutical leader<br />ESSEC – MS SMIB 2011 – Innovation Management– RIVIERE Guillaume, RAKOTOZAFY Bruno <br />
2<br />ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />WHAT IS RANBAXY ?<br />Indi...
ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />3<br /> RANBAXY’S HISTORY <br /><u...
« Best Company 2003 » by Times for Corporate excellence
Recognition as a major pharmaceuticalactor
Internationalisation of the company :
Aquisition of « eastern » companies
Introduction in US market
 Global development of activities</li></li></ul><li>4<br />ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaum...
ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />5<br />The added value triangle<br...
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Ranbaxy (#1 Pharma in India) - Strategy Analysis and recommendations

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Ranbaxy is the leading pharmaceutical company in India with $41 billion revenue in 2010. Analysis of its innovation strategy and recommendations for the near future.

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Ranbaxy (#1 Pharma in India) - Strategy Analysis and recommendations

  1. 1. The Indianpharmaceutical leader<br />ESSEC – MS SMIB 2011 – Innovation Management– RIVIERE Guillaume, RAKOTOZAFY Bruno <br />
  2. 2. 2<br />ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />WHAT IS RANBAXY ?<br />India'slargestpharmaceuticalcompany : <br />Presence in 23 of the top 25 pharmaceutical markets of the world<br />Global footprint in 46 countries<br />World-class manufacturing facilities in 7 countries<br />Serves customers in over 125 countries. <br />v<br />
  3. 3. ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />3<br /> RANBAXY’S HISTORY <br /><ul><li>Continuees expansion withinternal and externalgrowth
  4. 4. « Best Company 2003 » by Times for Corporate excellence
  5. 5. Recognition as a major pharmaceuticalactor
  6. 6. Internationalisation of the company :
  7. 7. Aquisition of « eastern » companies
  8. 8. Introduction in US market
  9. 9. Global development of activities</li></li></ul><li>4<br />ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />Innovation in makingdrugs: Generical vs. Blockbusters<br />
  10. 10. ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />5<br />The added value triangle<br /><ul><li>The combination of these 3 factorscreated a strategicadvantage.
  11. 11. In a globalizing world, Ranbaxyrised as a local manufacturer for foreignbig pharmas and thenwanted to developowndrugs.
  12. 12. Withcheapercosts, they first reached a good income to invest.</li></li></ul><li>ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />6<br />The process to maintain the added value<br />
  13. 13. ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />7<br />Twocategories of Competitors<br />Cheap manufacturers<br />Biglaboratories<br /><ul><li>Samegeolocalisatedcompaniescompetingwithprices
  14. 14. Giants of the genericsdrugsmarketthat have plants in cheap countries
  15. 15. Creatingtheirownunits of generics
  16. 16. Creating new drugswith patents
  17. 17. Competition on new drugsmarketwhereRanbaxy as lessknowledge</li></li></ul><li>ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />8<br />Pressure comingfrom the globalizedindustry<br />Negative image of a genericalcompany<br /><ul><li>Continuouslyimprove the R&D effort
  18. 18. Soldits first owninnovativeproduct in 2012 (in phase II up to day)
  19. 19. Deal with a mix of low an high end products</li></ul>Competitionfromother countries <br /><ul><li>2005: patent recognition in India
  20. 20. China and malaysia are becomingbetter in drug mass production
  21. 21. Sandoz an Teva are largely more active in Western countries market</li></ul>Dispersion threat<br /><ul><li>Ranbaxyispresent in numerous country but hardly as a leader
  22. 22. Externalgrowth vs. Marketshareincrease</li></li></ul><li>ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />9<br />Recommendations<br />
  23. 23. ESSEC – MS SMIB 2011 - INNOVATION MANAGEMENT – RIVIERE Guillaume, RAKOTOZAFY Bruno<br />10<br />To conclude<br />The phamaceuticalindustryisbasically one of the mostinnovative one. <br />Contrary to conventionalbig pharma Ranbaxy has initiallygrowththanks to itsability to createvery good and cheap drugs. <br />This strategy has leadit to be, in 2010, the mostinnovativecompany in India (100 USD million in R&D).<br />The money earned have to bespendnow in order to become a real challenger (and surely a leader in some countries) against western companies by creating real new drugs.<br />Thanks to itspresence in bothacademic and industrial network, plus the competence of its management team (fresh CEO Malvinder Singh) the companysould not miss the turn.<br />

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