STRTEGIC MANAGEMENT

Case Study of Century

Pharma. Inc.
Noshaba Kanwal (64431)

Submitted to Prof. Naeem Bhojani

 Case Study
1. Is the above case a complementary strategic alliance? If so, what kind of complementary
strategic alliance?
2. Is it a competition response strategy? If so, who are the competitors and what are they
doing?
3. Is it an uncertainty reducing strategy? If so, how can the uncertainty are reduced?
4. Is it a competition reducing strategy? If so, explain how it works

Firm shares resources and capabilities in complementary ways to develop competitive advantages
include distribution, suppliers or out sourcing alliance where firm rely on upstream, downstream partner
to create value.

Answer #1
Yes it was a complementary strategic alliance. In the given case study horizontal complementary
strategic alliance is formed between Century Pharmaceuticals and Excel Research. They combine their
resources and skills to get mutual advantages by focusing on long-term product development and
distribution opportunities.

Answer #2
Yes, it is a competition response strategy. In the given case generic firms are the competitors because
the drugs are well understood combinations of basic chemicals and as soon as their Patent expires
they can make substitute product with same formulation. For that they can use the testing which has
been conducted by Century Pharmaceuticals. Because they can be difficult to reverse and expensive to
operate, competition response strategic alliances are primarily formed to respond to strategic rather
than tactical actions or may analyze the results under the light of Century Pharma’s testing.

Answer #3
Yes, this was an uncertainty reducing strategy because Pharmaceutical Companies needs to have
a lot of testing and legal procedure before launching their product into the market. As they
have uncertainty that it may take a lot of time and as soon as their patent expire new generic
firms are ready to launch the same formulation drug. So to reduce this condition of uncertainty
they form a corporate strategy . As Excel Research has an established and proven track record of
success in supporting and providing the evaluation required to bring new therapies and new
uses for existing therapies to market.
Answer #4
From my point of view it was not a competition reducing strategy because it was a new product which is
itself a competition for other generic companies.