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Sanofi Aventis Finalpresentation 110924085235 Phpapp02 PDF
Sanofi Aventis Finalpresentation 110924085235 Phpapp02 PDF
HéroïneNeou
Patrick Nesme
STRATEGIC MANAGEMENT (SMIB 2011) Bruno Rakotozafy
December 2010 Antoine Rivet
CONTENT
History
PESTEL Analysis
5 Forces Analysis
Value Chain
SWOT
Strategies
Strategic recommendations
HISTORY
• Global healthcare company Net sales 2009: €29,306 million
• Six therapeutic areas Approximately 105,000 employees in 110 countries
10 blockbusters = 50% of the net sales
Dausse Sanofi+Synthélabo
Sanofi-Synthélabo
+ Robert &Carrière
Rhône Poulenc
Synthélabo +Hoechst
Aventis
•Governments have approved many new medicines •The decrease of purchasing power in the developed
in different parts of the world countries can affect the OTC market
ENVIRONMENTAL LEGAL
•Low environmental requirements in emerging •The patent of some blockbuster drugs will expire in
countries the coming years. High dependence on the
blockbusters
•Global epidemics such as Swine Flu have
boosted activities •The health industry is a highly regulated.
5 FORCES ANALYSIS (1/3)
Potential entrants Substitutes
10 global competitors
R&D rush
M&A
Intense
Suppliers Buyers
Weak Important
5 FORCES ANALYSIS (2/3)
Present Situation Very High : 4
Rivalry
0
Low : 1 Medium : 2
Threat entrants Substitues
Public authorities
5 Regulatory Affairs
Governmental policies
Very High : 4
Public authorities
5 Regulatory Affairs
Governmental policies
Very High : 4
Low : 1 Average : 2
Supplier Power Buyer Power
VALUE CHAIN (1/2)
RESOURCES COMPETENCES
•Global presence well balanced: •Ability to adapt its offerings to local market needs.
- Products sold in 170 countries Low-cost approach based on local know-how.
-Strong presence in the traditionalmarkets (Europe,
North America and Japan) •Ability to innovate and to stabilize R&D costs
-Top multinational pharmaceutical company in thanks to partnerships.
Emerging Markets - 12 R&D projects in phase 3.
- Partnerships with Wellstat (diabetes),
•Local manufacturing in Emerging markets (40 Exelixis (oncology)...
facilities and nearly 30,000 employees in the
Emerging Market countries): •Ability to manage mergers and acquisitions,
-to partly overcome protectionism partnerships and joint-venture to capture new
- to improve operating margins. market opportunities.
•Strong financial resources allowing Sanofi-Aventis •Specialized knowledge and know-how in key
to have an aggressive acquisition strategy. sectors
Ex: Diabetes (Lantus, Aprida, Amaryl, Insuman)
SWOT
STRENGTHS WEAKNESSES
•Market leader in emerging markets •High dependence on aging patent-protected
(China, India, Brazil, Mexico, Russia) blockbusters like Plavix and Lovenox
•Strong position in the diabetes care market •The patent of most of the blockbuster drugs
(19% sales increase in 2009) will expire in the coming years
OPPORTUNITIES THREATS
•Population growth and significant increase •Increasing generic competition
in purchasing power in emerging countries
•Political reforms to cut government
•The ageing population will continue to spending on healthcare
form an important source of consumers
•Problem of counterfeit medicines especially
in emerging countries
STRATEGY 1: DIVERSITFY AND DEVELOP NEW BUSINESSES
• Acquisition of firms in other sectors
Oenobiol Nutritive complements for health and beauty
• 30 acquisitions in 2009
Zentiva group generic products adapted in Eastern and central Europe
Laboratorios Kendrick main generic products in Mexico
Medley leader in generic products in Brazil
Takeover bid on Genzyme (18,5 billion $) leader in biotechnologies + rare illnesses
RECONVERSION OF
CONCENTRATION INDUSTRIAL SITES COST LOGISTIC
OF SITES AND EMPLOYEES REDUCTION IMPROVMENTS
Closure of Chemistry R&D costs + Regional
Romainville Biotech Sales force costs governance
ADAPTING
INCREASING SALES LOCALCOST
FACILITIES
PORTFOLIO REDUCTION
Specificdrug / 6.5 13 Bio $ In-house factories
area 30
30 projectsstopped
49 projects in development
Developpartenrships
Developexternal R&D
1. Enhance its presence in the biotechnology field (plants, staff and R&D)
5. Expand into new geographic areas: enhance local presence (factories, local
workforce), develop region-specific drugs, enter into partnership with
governments and local companies.
SOURCES