TOPIC : RANBAXY LABORATORIES
Submitted to:
Prof. Deepak Shyam
MBA Dept Submitted by:
Nithin Unnikrishnan Nair 1PT12MBA36
CONTENT
* INTRODUCTION * VISION AND MISSION * INDUSTRY ANALYSIS(PORTER’s FIVE MODEL) * SWOT ANALYSIS * COMPETITIVE STRATEGY OF RANBAXY * BCG MATRIX * GLOBAL STRATEGY FOR GROWTH *
RANBAXY LABORATORIES
INTRODUCTION
Ranbaxy Laboratories ltd is an Indian multinational pharmaceutical company that was incorporated in India in 1961. The company went public in 1973 and Japanese pharmaceutical company Daiichi Sankyo acquired a controlling share in 2008. Ranbaxy exports its products to 125 countries with ground operations in 43 and manufacturing facilities in eight countries. In 2011, Ranbaxy Global Consumer Health Care received the OTC Company of the year award .
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale.
In June 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion. In November 2008, Daiichi-Sankyo completed the takeover of the company from the founding Singh family in a deal worth $4.6 billion by acquiring a 63.92% stake in Ranbaxy.
Ranbaxy Laboratories Limited | | Type | Public company | Traded as | BSE: 500359
NSE: RANBAXY | Industry | Pharmaceuticals | Fate | Takeover by Daiichi Sankyo | Founded | 1961 | Headquarters | Gurgaon, Haryana, India | Revenue | 99769 million (US$1.5 billion)(2011) | Net income | EBITDA 18299 million(US$280 million)(2011) | Employees | 10,435[1] | Parent | Daiichi Sankyo | Website | www.ranbaxy.com |
VISION * Achieving customer satisfaction is fundamental to our business * Provide products and services of the highest quality * Practice dignity and equity in relationships and provide opportunities for our people to realise their full potential * Ensure profitable growth and enhance wealth of the shareholders * Foster mutually beneficial relations with all our business partners * Manage our operations with high concern for safety and environment * Be a responsible corporate citizen
MISSION
Enriching lives globally, with quality and affordable pharmaceuticals
INDUSTRY ANALYSIS (PORTER’s FORCES MODEL)
SWOT ANALYSIS
STRENGTH
* Large pool of R&D personnel * Strong financials * 14000 skilled workforces * Largest distribution networks-2500+skilled field force. * Increasing liberalization of government policies. * Efficient technologies for large number of generic drugs. * Strong brand image.
WEAKNESS
* Lack of experience to exploit efficiently the new patent regime. * Stricter registration procedures. * Alternatives are easily available. * Low or NO switching over costs for the customers. * Severe competition. * Inadequate funds. * Lack of inadequate infrastructure.
OPPORTUNITY
* Growing income * Growing attention to health. * Globalization. * New therapy approaches. * New diagnoses and new social diseases. * Saturation point of the market is far away. * Ageing of the world organization.
THREAT
* High entry costs in new markets * High costs of sales and marketing. * High costs of discovering new products, Few discoveries
COMPETITIVE STRATEGY OF RANBAXY
When a firm sustains profits which exceeds the industry average, the firm is said to have a competitive advantage over its rivals.
Porter identified two types of competitive advantage * Cost advantage * Differentiation advantage
Cost advantage is when the firm delivers the same benefits at lower price. And differentiation advantage is when the benefits delivered exceed to that provided by the competitors.
The above two advantages are the result of resources and capabilities.
Ranbaxy is distinct competitive advantages give the company an edge over the others
* Major global presence since 1939.
* The Company has a pool of over 1,200 R&D personnel engaged in path- breaking research.
* A first-of-its-kind world class R&D centre was commissioned in 1994 .Today, the Company has multi-disciplinary R&D centers at Gurgaon , inIndia, with dedicated facilities for generics research and innovative research.
* Strong financials.
* 14,000 strong multicultural skilled workforces comprising of over 50nationalities.
* One of the largest distribution networks that comprises 2500+ skilled field force.
BCG MATRIX
PRODUCTS OFFERED BY RANBAXY
STAR: Dermatology , orthopaedics , Nutritionals and Urology segments
QUESTION MARKS:HIV/AIDS Product
CASH COW: Cardio vascular , Central Nervous System , Respiratory
DOGS : Revital ( a daily food supplement from Ranbaxy global consumer healthcare)
GLOBAL STRATEGY FOR GROWTH
Tempest retired in June 2005 and Malvinder Mohan Singh became CEO and MD. Like his father, Malvinder Mohan Singh also wanted to take Ranbaxy to a new height. His strategy was to focus on US, Europe, and emerging markets. It has a market share of 42% in the developed countries .
Its market was growing at the rate of 31% in USA in 2006 . He bought a US midsized generic company Mutual Pharmaceuticals for US $ 300 million and five other global companies. He had taken shareholder’s approval to raise US$ 1.5 billion in equity and US $ 1.2 billion in debt. He raised another US $ 440 million through a Foreign Currency Convertible Bond (FCCB) offering. 