Company A is an established player in the pharmaceutical market, specialising in analgesia (pain killers) possessing around 33 per cent of the available market share, which it shares equally with two other competitors (Companies B and C). Company A currently sells products of different strengths to medical organisations, chemists (prescription only) and supermarkets (non-prescription). The products in this market have not changed radically in the last 5310 years, although improved practices have allowed the cost-to-manufacture to drop significantly. 

Recent market analysis has indicated some interesting activities which need to be considered by the senior management team of Company A. These include: 

• Competitors are aggressively entering new geographical markets

• Competitors are looking to diversify into new product areas, and are supported by strong relationships with influential research groups.

This has been supported by some externally commissioned research which has indicated that both Companies B and C have adjusted their R&D funding profiles, with an intention to drive a ‘first-tomarket’ positioning with estimated profiles as follows: 

To remain competitive, Company A now recognises that it needs to adjust its strategies and portfolio. Consequently, recent strategic planning activities have uncovered a strong need for Company A to aggressively grow market share, revenue and margins. 

Before it can do so, it needs to understand the issues that are faced by the current portfolio. Some specific detail around the current portfolio is offered below: 

Questions 

1. Which elements are missing that make it difficult for Company A to baseline its activities?

2. What challenges are being faced by Company A?

3. Based on these challenges, which five exhibits would you present to the Review Board to provide an effective review of the company’s current product portfolio? Please state reasons why you selected these exhibits.

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Investment profile/year Breakthrough new Ongoing new Life cycle Current year 33% 34% 33% Current year +1 38% 34% 28% Current year + 2 43% 34% 23%