Competitive Advantage in International Markets Launch of a new product

Wolfgang Epple Dr. Thomas Schwarz

W. Epple / Dr. T. Schwarz

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Overview
1. Introduction 2. Basics / Theory 3. Diabetes / Insulin 4. Case: Launch of a new product Lantus® on US Market 5. Discussion 40’ (Group work) 20’ (all) 5’ (Wolfgang) 30’ (Wolfgang) 30’ (Thomas)

W. Epple / Dr. T. Schwarz

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Schwarz 4 2 . healthcare system. of workers Physical resources: The availability. amount. 2.. quantity. 3.. technical and market related knowledge Capital resources: The availability. Epple / Dr. Human resources: Quantity. communication system → availability and cost of these systems 5. Epple / Dr. cost and types of capital available to the country’s industries. quality and cost of land. 4.. Schwarz 3 • • Global and National Competitive Advantage: Factor Conditions 1.. W. transportation system. wage levels. interest rates. T.Industry Analysis: Forces Influencing Competition ⇒ Porter‘s model: II Threat of substitute products or services • Threat of substitute products or services influence competition if the product or service offers a better quality or better performance to a lower price than the existing products or services The result is: Reduced sales + reduced market share for the existing product players The substitution depends on ⇒ price performance of substitute ⇒ brand loyalty of customers ⇒ close customer relationship ⇒ switching costs for customers W. The nation’s savings rate. water and other natural resources Knowledge resources: The availability of having scientific. tax laws and government deficit all affect the availability of this factor Infrastructure resources: Banking systems . T.

kidney disease. need for amputations DM claims on the average around 8% of total health budgets in developed countries W. 45% of worldwide • 1985: Introduction of „pens“ • „Pen“ and „premixed“ company W. heart disease. Introduction Diabetes Mellitus: = is a chronic disease caused by inherited and/or acquired defiency in production of insulin by the pancreas. Epple / Dr. Introduction 2. Schwarz 6 3 . Epple / Dr.1. NovoNordisk • Share: 25% in USA. T. strokes. nerve disease. Schwarz 5 1. T. or by ineffectiveness of the insulin produced Long-term complications: blindness.

Introduction 3. Schwarz 8 4 . T. T. Epple / Dr. US market • US: world‘s biggest pharmaceutical market • (still) growing: +15% / year • important: FDA regulations / approval • account for 55% of insulin sales of the world (in $ value) • Health care costs in USA Average person: Diabetic patient: $2600 / year > $10000 / year W. Epple / Dr. relaunched in 1998 Pens: Cooperation with Disetronic The answer: W.1. Aventis • • • • 55% in Germany. worldwide 6 % Biotech production stopped in 1985. Schwarz 7 2.

Epple / Dr.5 ml Popular USA General practioners Partly paid by insurance OTC.4 / day Pens 1.2. T. US market Europe First contact Payments Availability Purchasing decision Frequency of injections Delivery system Vials Education / Training Specialist Paid by insurance Prescription Physician 3 . Schwarz 9 5 . Prescription Pharmacist. Physician Only once a day Syringes 3 ml Infrequent W.