ETHIOPIA: An Emerging Market Opportunity? Harvard Case Solution & Analysis

ETHIOPIA: An Emerging Market Opportunity? Case Study Solution

SWOT Analysis

The company has its own generic products, which it sells in local packaging. It has established its subsidiaries, where it has found lean and agile manufacturing facilities. The company is very efficient in producing and managing its products.

The company can only serve to a smaller market because of its ability of small production batches. In addition to this, the company’s growth is slowing down in the Middle Eastern as well as the North African markets, because of the maturing of its business in these markets as well as their internal political disturbance.(see appendix 5)

Entry Strategy

The above analysis reveals that the company should establish its own subsidiary with its ability of working efficiently, it will increase their ability to serve a wider market, set a competitive price as well as manage the brand image, position the products and protect the intellectual property. (see appendix 2)

Marketing Strategy

Establishing own subsidiary requires huge investment and knowledge about local culture is risky,because it requires mass marketing to increase customers along with acknowledging their cultural values. MedCo should have an intensive marketing along with promotional activities. Direct mailing and contacting will also play crucial roles in establishing their brand awareness in Ethiopia.

Recommendation

It is recommended to the MedCo that it should avail the facilities provided by the government, which will boost their profitability and performance. The low costs due to tax and custom duty exemptions and special preference given to the local manufacturing of pharmaceutical products are additional advantages for the company. In addition to this, the low cost of inputs increases the profitability. There is an expected market of $200 million in Ethiopia. Although, there are many facilities, but the company would have the possibility of facing some challenges in establishing its subsidiary, such as fragmented distribution channel with 3500 individual pharmacies and a competition with the Indian and Chinese pharmaceutical companies.

Tactical Plan

The proposed tactical plan has been formulated with details for establishing a subsidiary in Ethiopia.

S. NoAction PlanResource NeededDeadlinePerson Responsible
1.Define target audienceProper research by using sample technique1 weekStrategic manager
2.Set SMART goalsProper documentation1 weekPlanning manager
3.FDI in EthiopiaGovernment rules and regulations5 daysFDI manager
4.Hire local staffIdentify wage rate and hiring staff1 monthRecruitment manager
5.Communicate with local person to gain knowledgeFocal person2 weeksFocal person
6.Strategic planningProper documentation1 weekStrategic manager
7.Develop brand awarenessMarketing tools4 monthsMarketing manager
8.Mass marketing/ direct contactHuge investment and marketing tools2 monthsMarketing manager
9.Arrange cultural events and invite local publicHuge investment and event planning1 weekMarketing manager
10.Controlling operationsData, records and observationThroughout the planControlling officer
11.Evaluate resultsData and recordsLast week 

Controlling officer

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ETHIOPIA: An Emerging Market Opportunity?

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