This document discusses the competitive advantages and strategy formulation processes of three large pharmaceutical companies: Novartis, Pfizer, and Sanofi-Aventis. It outlines how Novartis was formed through a merger and leads in various therapeutic areas. Pfizer invests heavily in research and develops blockbuster drugs. Sanofi-Aventis has a large diversified drug portfolio and global vaccine leadership. The strategy formulation process for Novartis is also summarized, including its mission to discover and market innovative products, objectives like eliminating diseases, and potential strategies like investing in R&D.

1. Competitive advantageCompetitive advantage
&&
Strategy Formulation ProcessStrategy Formulation Process
Example: Novartis, Pfizer,
Sanofi-Aventis

2. 12/19/14 2
Table of contentsTable of contents
 Competitive advantage
–Novartis
–Pfizer
–Sanofi-Aventis
 Strategy formulation process

3. 12/19/14 3
NovartisNovartis
 Merger of Ciba-Geigy and Sandoz
 Based in Basel/Switzerland
 World leader in providing medicines to protect
health,prevent and treat disease, improve
well-being
 Biggest health care company in Switzerland

4. 12/19/14 4
Competitive AdvantageCompetitive Advantage
 Leadership positions in patented and generic
pharmaceuticals
 Invest in strategic platforms:
– Offer innovative prescription medicine
– Cost efficient and qualitative high generics
– Vaccines for therapeutical demand of
health care
– Leading over-the-counter drugs

5. 12/19/14 5
Pfizer (Comp. Advantage)Pfizer (Comp. Advantage)
 Investing in ongoing research, always be the
first
 Market dominance -> skimming strategy
 Acquisition of other pharmaceutical
companies
 Diversification for both: products and regions
 Development of blockbuster products, such
as Viagra

6. 12/19/14 6
Competitive Advantage cont.Competitive Advantage cont.
 Taking advantage of lobbyism to get
favourable regulations
 Unique packaging
 Decentralization and de-bureaucratization by
splitting its drug research division

7. 12/19/14 7
Sanofi-AventisSanofi-Aventis
 Swiss based company with over 100,000
employees
 Merger of Aventis and Sanofi-Synthelabo
(2004)
 7 major therapeutic areas :
Cardiovascular, thrombosis, metabolic
disorders, oncology, central nervous system,
internal medicine and vaccines

8. 12/19/14 8
Competitive AdvantageCompetitive Advantage
 European leading position
 High diversified portfolio of drugs
 Largest firm worldwide devoted entirely to
vaccines
 Advantages in several therapeutic areas
– Influenza pandemic
– Venous Thrombosis
– Cancer healing
– Insulin

9. 12/19/14 9
Strategy formulation process for Novartis

10. 12/19/14 10
Strategy Formulation ProcessStrategy Formulation Process
4 steps:
 Mission: reason for existence
 Objectives: what results to be accomplished
by when
 Strategies: plan to achieve the mission and
objectives
 Policies: broad guidelines for decision making

11. 12/19/14 11
MissionMission
 Discover, develop and successfully market
innovative products
 to prevent and cure diseases
 to ease suffering
 to enhance the quality of life
 Providing shareholder return that reflects
outstanding performance

12. 12/19/14 12
Main ObjectivesMain Objectives
 Eliminate leprosy by providing free
medications to all patients worldwide
 Discover noble treatments and prevention
methods for major tropical diseases
 Work at policy and field level to improve
access to healthcare for the world’s poorest
people

13. 12/19/14 13
StrategiesStrategies
Strategies Novartis could follow:
 Invest in R&D
 Promote company in order to get donations
 Promote company’s products

14. 12/19/14 14
PoliciesPolicies
 Strive to maintain and strengthen a corporate
culture based on:
– Integrity
– Honesty
– Compliance with the law
 Strongly commitment to 10 principles of
United Nations Global Compact

15. 12/19/14 15
Corporate CitizenshipCorporate Citizenship
 Patients – discover high quality healthcare
products
 People – build an exciting workplace
 Health, Safety and Environment – reduce
environmental footprint
 Business conduct – ensure corporate
governance

16. Thank you for your attention!Thank you for your attention!
Questions???Questions???