D. Watson Chemists is presenting their business model for expanding into the UAE market. They currently have key suppliers in Pakistan that provide 90% of their products. To expand, they will need to invest in building relationships with new local suppliers in the UAE to control costs. They offer a variety of medical, health, beauty and household products. Their strategy is to provide quality products at competitive prices through both physical stores and online channels to various customer segments. They will face competition from other pharmacies and retailers in the UAE market.

1. D. WATSON CHEMISTS
PRESENTED BY:
KHURRAM ALTAF
CHD. TAYMOOR
SOHAIL AHMED
SHAIR KHAN
WALEED AZAM

2. Business Model Canvas
Designed for: Designed by: Date: Version:
Key Partners
Cost Structure
Key Activities
Key Resources
Value Propositions Customer Relationships
Channels
Customer Segments
Revenue Streams
Group of suppliers who
provide quality products
to D. Watson from last 35
years and they will
remain key partners of D.
Watson after entering to
the UAE market
Provide Local & Imported
Allopathic & Homeopathic
Medicines, Drugs,
Cosmetics, Herbal Products,
Optical Products, Surgical
supplies etc.
We will provide medicines,
drugs, cosmetics and other
products to the customer with
a cost-effective structure. We
also decrease risk of using a
low quality medicine and drug.
Optical products and Apparel
products also sell by D.
Watson Chemist
Provide customer services
on a electric and electronic
product purchase. We help
them if they face any
problem while using our
different products and
medicines. Which ones have
we established? How are
they integrated with the rest
of our business model? How
costly are they?
We target different customer
segments such as those
customers who need
different type medicines,
then the market segment of
perfume and cosmetics,
Apparel market segment.
Super store market segment
High quality Suppliers
group. Also the good will of
D. Watson in Pakistan.
Open our own stores in
different location to serve
our customers. Also
provide online services
D. Watson chemists invest their huge amount on building their strong
relationship with suppliers. D. Watson gives training to their suppliers. As D.
Watson get 90% of their products from their local suppliers. So when they
expand their business to the Dubai, they need to invest more on their suppliers
if they continue the process to get products from their local suppliers.
Otherwise their cost will increase when they purchase product from the
suppliers of the Dubai.
Employees Training Cost.
Customers are willing to pay when they get high quality product. D. Watson will
follow the fixed price technique as they will charge a fixed amount on a specific
medicine, optical product and other Product.
D. Watson Chemist Khurram Altaf 04/05/2020 X.Y

3. DESCRIPTION
D. WATSON COMPANY IS PLAYING A VITAL ROLE TO
PROVIDE COMPLETE & SUBSTANTIATE RANGE OF LOCAL &
IMPORTED ALLOPATHIC & HOMEOPATHIC MEDICINES,
DRUGS, COSMETICS, HERBAL PRODUCTS, OPTICAL
PRODUCTS, SURGICAL SUPPLIES ETC.

4. PRODUCTS & SERVICES
• D. WATSON OFFERS A VARIETY OF KEY SERVICES INCLUDING PHARMACY, ALLOPATHIC MEDICINES,
VITAMINS & HEALTH SUPPLEMENTS, PERFUMES, MEDICAL STORE, MEDICINES RETAILER, EYE CLINIC &
OPTICAL, OPTOMETRIST CONSULTANTS, FIRST AID, PLASTER & PAINKILLERS TABLETS, ANTIBIOTICS,
ORTHOPEDIC, HERBAL PRODUCTS, BEAUTY PRODUCTS, BABY CARE PRODUCTS, TOILETRIES, ELECTRICAL
ITEMS AND PET PRODUCTS.
• D. WATSON ALSO HAVE BRANDED PERFUMES, DEODORANTS, SHAMPOOS, TOOTH PASTES, PAMPERS,
FEEDING BOTTLES AND MANY MORE. LAST BUT NOT LEAST, ON 2ND FLOOR NOW WE HAVE BRANDED SHOES
& BAGS FOR LADIES. NO OTHER SHOES/BAGS STORE IN TWIN CITIES (ISLAMABAD/RAWALPINDI) CAN
COMPETE US ON VARIETY.

5. OPPORTUNITIES
(+)
THREATS
(–)
Changing of Rules &
Law
High Turnover
STRENGTHS
(+)
WEAKNESSES
(–)
High Prices
Management Issues
INTERNALFACTORSEXTERNALFACTORS
Expansion
Increase Product Line
Improve management
Good Will
Strong Supplier Relation
Customer Services
Products Quality
S W
O T

6. PORTER’S FIVE FORCES
Potential Entrants Suppliers Bargaining Buyers Bargaining Threat of Substitutes Competitive Rivalry
D.Watson invest
amount in
suppliers
training
Drugs Laws &
Regulations
Purchase 90%
product from
local suppliers
High Bargaining
power in Bags &
shoes
Some Barriers
Shaheen
Chemist
Lateef Chemist
Islamabad Med
Store
Fixed Prices
Bags & Shoes
segment
No Barrier in
Optical segment
Because there is
no substitute of
medicines
Minimum
Chances
But there are
substitutes in
optical
products
Optical products
Bata & Service
etc.
Bags & Shoes

7. COMPETITORS
WITHIN A MARKET BUSINESSES ARE FACED BY DIRECT COMPETITORS. THESE ARE FIRMS THAT PRODUCE
THE SAME OR VERY SIMILAR GOODS LIKE PHARMACY, MEDICAL STORE, EYE CLINIC & OPTICAL, PERFUMES
ETC.
• SHAHEEN CHEMIST
• AL-LATIF CHEMISTS
• ISLAMABAD MEDICAL STORES ETC.

9. INTEGRATED BUSINESS PLAN
• COMPANY STRATEGIES
• HORIZONTAL INTEGRATION
• GLOBAL STRATEGY (LOWER COST, EASY TO MANAGE)
• CENTRALIZED APPROACH
• GLOBAL INTEGRATION APPROACH
MERCHANDISING
• LOCAL FOREIGN DRUGS VENDORS
• LOCAL FOREIGN OTHER COSMETICS PRODUCTS
MARKETING AND R&D
• CLOUD COMPUTING TECHNOLOGY
• MARKET INTEGRATED APPROACH
• CUSTOMER RESPONSE AND FEEDBACK
• PREDICT DEMAND OF THE PRODUCTS AND DAILY ORDERS

10. INTEGRATED BUSINESS PLAN
• MARKET INTELLIGENCE
• GATHER MARKET DATA AND CUSTOMER FEEDBACK
• KNOW THE TASTE OF THE CUSTOMERSAND PREDICT DEMAND
• ANALYZE THE DATA TO PREDICT FUTURE STRATEGY
PRICING AND TRADE PROMOTION
CROSS NATIONAL TELEVISION CAMPAIGN AND MORE FOCUS ON OFFLINE PROMOTION
MEET THE INTERNATIONAL CRITERIA AND CHEAP PRODUCTS ACCORDING TO THE VISION OF D WATSON.

11. INTEGRATED BUSINESS PLAN
• PRICING AND TRADE PROMOTION
• KEEP PRICE COMPETITIVE PRODUCT
• COST LEADERSHIP STRATEGY
• CROSS NATIONAL TELEVISION CAMPAIGN
• USING PAKISTAN ONLINE APP ALSO USED IN INTERNATIONAL LEVEL
WHAT IF ANALYSIS
IF WE MEET THE DEMAND OF DRUG ENFORCEMENT LAWS
FOREIGN INVESTMENT LAWS REQUIREMENT
COUNTRY RISK ANALYSIS ( POLITICAL AND LAWFUL)
SALES FORECASTING MEET OUR PREDICTION LEVEL?
OPERATIONAL COST COULD BE IN OUR COST LEADERSHIP FRAME WORK?

12. INTEGRATED BUSINESS PLAN
• TRANSACTIONAL APPROACH
• ANALYZE THE PRODUCTS AVAILABLE IN THE PHARMACY OF THE TARGETED MARKET
• MARKETING APPROACH COULD BE TRANSACTIONAL BOTH LOCAL AND FOREIGN
• INTEGRATED MARKET APPROACH

13. STRATEGIC ALTERNATIVES
D. WATSON HAS MANY OPTIONS TO CHOOSE THE SPECIFIC AND GOOD STRATEGIC ALTERNATIVE TO ENTER IN
A NEW MARKET. EVERY OPTION HAS ITS OWN ADVANTAGES AND DISADVANTAGES.
• NICHE STRATEGY
INTRODUCE THE NEW PRODUCT OR SERVICE ALONGSIDE THE MAIN PRODUCT IN ORDER TO BUILD THEIR
RELATIONS
FREE HEARING TEST ETC.
RECEIVE TOUGH COMPETITION FROM EXISTING BRANDS AND COMPANIES

14. BASIC ISSUES IN ENTERING MARKET
• MARKETING
• SOURCING
• INVESTMENT CONTROL