Case Details: |
Price: |
| Case Code |
: |
BSTR271 |
For delivery in electronic format: Rs. 400;
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ThemesGrowth Strategies | Product Lifecycle Management
|
| Case Length |
: |
19 pages |
| Period |
: |
2001-2007 |
| Pub Date |
: |
2008 |
| Teaching Note |
: |
Available |
| Organization |
: |
AstraZeneca
Plc. |
| Industry |
: |
Pharma and Biotech |
| Countries
|
: |
Europe; USA |
Abstract:
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This case is about one of the world's top pharmaceutical
companies, AstraZeneca Plc.'s (AstraZeneca) strategic defense of its market
leadership in the Gastrointestinal (GI) drugs market. The company had dominated
the GI drugs market, more specifically the acid-related disorder market, ever
since it launched the drug Omeprazole (a Proton Pump Inhibitor) which was
marketed as Losec worldwide and Prilosec in the US. Losec/Prilosec became one of
the world's top best selling drugs in the 1990s. As the drug was scheduled to
lose its patent protection in 2001, the company put together a cross-functional
team in 1995 to formulate a strategy that would ensure that the company did not
lose its market share due to the patent expiry.
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|
This resulted in the company coming out with
a new drug (Esomeprazole) that was but a mirror image of
Omeprazole. AstraZeneca branded the new drug as Nexium and
started efforts to switch the existing sales of Losec/Prilosec
to Nexium.
The strategy proved to be very successful as AstraZeneca was
able to maintain the leadership position in the GI drugs market
even after the patent expiry of its blockbuster drug. As of
2006, Nexium was ranked second among world's largest selling
drugs, and its marketing had won AstraZeneca and its ad agencies
a number of awards and recognition in marketing. However,
AstraZeneca's strategy also came in for strong criticism with
many critics contending that the success of Nexium was a triumph
of marketing over science. The company also faced several
lawsuits regarding its strategy for Nexium.
Issues:
» Understand the issues and challenges faced by market leaders in a particular
segment in maintaining its leadership position.
» Understand the issues and challenges faced by companies in managing the
product lifecycle (PLC) of the drug with special emphasis on the defence
strategy against multiple cost-based competitors.
» Understand the marketing and branding initiatives adopted by AstraZeneca for
Nexium.
» Understand the ethical issues related to marketing and promotion of a drug.
Contents:
Keywords:
Market leader strategies, Sandwich strategy, Intellectual
property management, Defense strategy, Product Lifecycle management strategy,
Shark fin curve, e-detailing, Branding , Ethics, AstraZeneca, Marketing,
Prilosec, Nexium, Procter & Gamble, Pharmaceutical , Marketing
Averting The Shark Fin
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