Essay about Cipla 2011, Harvard Business Case, March 27, 2012

Cipla 2011, Harvard Business Case, March 27, 2012 1 °) Since AIDS was identified in 1982, various entities have been aiming at limiting the expansion of the pandemic. However each of these entities has had a different role and thus different results: * The World Health Organization has had a critical role through the coordination of the different actors involved. It has obtained significant results in terms of treatments coverage in the last few years. Its action has been completed by the UNAIDS recently; * Cipla has developed a unique business model and has made AIDS treatments affordable for almost anyone (1$/day with â€Å"Triomune†) by focusing on both humanitarian and financial targets (break-even). For example, Cipla has†¦show more content†¦Its success is based on the fact that it can quickly reproduce big pharma’s patented medicines as soon as the patents expire. Cipla manages to cut Ramp;D costs (4% in 2009) and to make significant profits by capitalizing on relatively Indian cheap manpower costs an d easy access to raw materials. Cipla also gets a competitive advantage by developing new delivery systems to make patients’ life easier. To finish, Cipla has acquired a good reputation among politicians from developing countries and NGO willing to spread treatments broadly. However, Cipla’s business model is now called into question by the TRIPS. They can no longer rely on the reproduction of patented drugs in India as big pharma’s patents are now protected for 20 years. They also suffer from competition in India as western companies have started to deal with Indian doctors (Cipla’s â€Å"backbone†). Cipla’s focus on emerging markets could also be threatened by western companies as they can sell old products at low prices in these countries. This is reinforced by the fact that Cipla’s brand awareness is quite low in emerging economies. Last but not least, Cipla has to spend much money in courts to suit Big pharma which anyway don’t seem likely to collaborate with it to manufacture drugs. 3 °) Cipla’s business practices could be first seen as an unfair competition as they capitalized on their competitors’ knowledge. Big pharma had indeed invested dramatically to develop andShow MoreRelatedEssay on Walmart16417 Words   |  66 Pageschains of large discount department stores and warehouse stores. The company is the worlds third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart.[5][6] It is also one of the worlds most valuable companies.[7] The company was