1. Competitive advantageCompetitive advantage
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Strategy Formulation ProcessStrategy Formulation Process
Example: Novartis, Pfizer,
Sanofi-Aventis

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Table of contentsTable of contents
 Competitive advantage
–Novartis
–Pfizer
–Sanofi-Aventis
 Strategy formulation process

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NovartisNovartis
 Merger of Ciba-Geigy and Sandoz
 Based in Basel/Switzerland
 World leader in providing medicines to protect
health,prevent and treat disease, improve
well-being
 Biggest health care company in Switzerland

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Competitive AdvantageCompetitive Advantage
 Leadership positions in patented and generic
pharmaceuticals
 Invest in strategic platforms:
– Offer innovative prescription medicine
– Cost efficient and qualitative high generics
– Vaccines for therapeutical demand of
health care
– Leading over-the-counter drugs

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Pfizer (Comp. Advantage)Pfizer (Comp. Advantage)
 Investing in ongoing research, always be the
first
 Market dominance -> skimming strategy
 Acquisition of other pharmaceutical
companies
 Diversification for both: products and regions
 Development of blockbuster products, such
as Viagra

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Competitive Advantage cont.Competitive Advantage cont.
 Taking advantage of lobbyism to get
favourable regulations
 Unique packaging
 Decentralization and de-bureaucratization by
splitting its drug research division

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Sanofi-AventisSanofi-Aventis
 Swiss based company with over 100,000
employees
 Merger of Aventis and Sanofi-Synthelabo
(2004)
 7 major therapeutic areas :
Cardiovascular, thrombosis, metabolic
disorders, oncology, central nervous system,
internal medicine and vaccines

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Competitive AdvantageCompetitive Advantage
 European leading position
 High diversified portfolio of drugs
 Largest firm worldwide devoted entirely to
vaccines
 Advantages in several therapeutic areas
– Influenza pandemic
– Venous Thrombosis
– Cancer healing
– Insulin

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Strategy formulation process for Novartis

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Strategy Formulation ProcessStrategy Formulation Process
4 steps:
 Mission: reason for existence
 Objectives: what results to be accomplished
by when
 Strategies: plan to achieve the mission and
objectives
 Policies: broad guidelines for decision making

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MissionMission
 Discover, develop and successfully market
innovative products
 to prevent and cure diseases
 to ease suffering
 to enhance the quality of life
 Providing shareholder return that reflects
outstanding performance

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Main ObjectivesMain Objectives
 Eliminate leprosy by providing free
medications to all patients worldwide
 Discover noble treatments and prevention
methods for major tropical diseases
 Work at policy and field level to improve
access to healthcare for the world’s poorest
people

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StrategiesStrategies
Strategies Novartis could follow:
 Invest in R&D
 Promote company in order to get donations
 Promote company’s products

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PoliciesPolicies
 Strive to maintain and strengthen a corporate
culture based on:
– Integrity
– Honesty
– Compliance with the law
 Strongly commitment to 10 principles of
United Nations Global Compact

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Corporate CitizenshipCorporate Citizenship
 Patients – discover high quality healthcare
products
 People – build an exciting workplace
 Health, Safety and Environment – reduce
environmental footprint
 Business conduct – ensure corporate
governance

16. Thank you for your attention!Thank you for your attention!
Questions???Questions???