Teva Pharmaceutical Industry Case Study Solution
How Teva Pharmaceutical Industries Limited can tackle the Bargaining power of suppliers
- By maintaining efficient supply chain techniques.
- Developing-devoted and honest suppliers whose business solely depends on the firm.
2.3 Bargaining power of buyers
Buyers always want the best products in the limited and at the least price. This became the barrier for the Teva Ltd for the long run. The smaller yet most powerful the base of customer for Teva is, the higher would be the bargaining power of its customers.
How Teva Pharmaceutical Industries Limited can tackle the Bargaining power of Buyers
- By developing the efficient and large base of customers.
- By innovating a new product which decreases the surrender of existing clients of Teva Pharmaceutical Industries Limited to its rivals.
2.4 Threat of substitutes
As the drug industry is growing rapidly; the threat of substitutes are higher for Teva industries Ltd.
How Teva Pharmaceutical Industries Limited can tackle the Threat of substitutes
- By developing the products based on the customer’s needs.
- By growing the switching cost of the product.
2.5 Competitive rivalry
Teva Ltd has been operating in a very competitive drug industry’s environment, such as: Merch, Novartis, Pfizer etc. These drug industries compete with Teva in a very ruthless manner.
How Teva Pharmaceutical Industries Limited can tackle the competitive rivalry?
- Expanding its business.
- Providing good quality products at reasonable prices.
- Innovating new products.
These are the important factors for the Teva Ltd to look up to and understand the surrounding environment in order to gain the maximum profits and to hold a safest place in the drug’s market.
1.Value Chain strategy
Teva Israel’s chain has the larger value system that mainly includes the upstream (suppliers) or downstream (Distribution channels) or both. Manager at Teva industry are promoted to see each activity by Teva pharmaceuticals’ industry value chain.
- In Teva, there are two plants in Israel that are currently capable of eight billion tablets and one in Canada with the same scale. The backbone of Teva’s supply chain was managed through several centers of excellence located globally to take advantage of differences in local labor skills and costs, tax provisions, and intellectual property regulations.
There are five possible procedures of value chain strategy of any pharmaceutical company likewise Teva, these are
| Drug discovery | Drug Discovery | Manufacturing | Distribution | Sales and marketing |
| Teva understand the demand and need of the drugs in the society and make the efficient products for the people living in this society. | Teva understand the demands of a customer and discover the efficient products for their customers.
Each day, Teva provides close to 2,400 products that touch nearly 200 million lives globally. That amounts to 85 billion tablets and capsules and 1 billion doses of sterile injectable drugs annually. |
Teva addresses the specific needs of their customers through precise planning at all levels of the manufacturing and supply process. They carefully manage production to make sure the medicines most crucial to patients are always available. | Teva delivers medicines to more than 60 markets, including the United States and Europe. | Teva market their products through different marketing techniques and supplier’s acquisition. |
......................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Town of Rovereto
Television Competes for a Digital Audience
Monitors Opportunities in India (A)
SPECIALISTERNE: Sense and Details
Jo Anne Heywood (B)
Value Line Publishing October 2002
ConAgra Foods
Caselets: Bribery and Extortion in International Business
The Chicago Blackhawks: Greatest Sports Business Turnaround Ever?
ISS A/S THE VALUATION ANALYSIS
