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. No | Action Plan | Resource Needed | Deadline | Person Responsible |
| 1. | Define target audience | Proper research by using sample technique | 1 week | Strategic manager |
| 2. | Set SMART goals | Proper documentation | 1 week | Planning manager |
| 3. | FDI in Ethiopia | Government rules and regulations | 5 days | FDI manager |
| 4. | Hire local staff | Identify wage rate and hiring staff | 1 month | Recruitment manager |
| 5. | Communicate with local person to gain knowledge | Focal person | 2 weeks | Focal person |
| 6. | Strategic planning | Proper documentation | 1 week | Strategic manager |
| 7. | Develop brand awareness | Marketing tools | 4 months | Marketing manager |
| 8. | Mass marketing/ direct contact | Huge investment and marketing tools | 2 months | Marketing manager |
| 9. | Arrange cultural events and invite local public | Huge investment and event planning | 1 week | Marketing manager |
| 10. | Controlling operations | Data, records and observation | Throughout the plan | Controlling officer |
| 11. | Evaluate results | Data and records | Last week |
Controlling officer |
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