A.L.Labs case analysis from the book international marketing by Terpstra

Essay by jobligadoUniversity, Bachelor's July 2005

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How has this affected its choice of strategy in international marketing?

Since A.L. Labs was able to increase the proportion of their business in the US to the extent that US sales are greater than the foreign sales of the parent company, and in which most sales are from pharmaceuticals, human nutrition, and animal health respectively they decided to diversify away from animal feed to pharmaceuticals especially the generic pharmaceuticals. The company has jumped over the process of technology development and strategies now focus on investments that will increase their market share.

With this strategy in mind, A.L. Labs started focusing on the distribution of their new product line, the generic pharmaceuticals. Increase in distribution means increase shares in the US markets. So they bought Dumex Ltd due to the following reasons: (1) functions as a European development division, (2) ability to obtain Danish government funding for new projects and (3) new opportunities for cross-fertilization of new drug discoveries between Europe and the United States.

They also bought ParMed for the reason that it is known in the business as a distributor of generic pharmaceuticals with the use of telemarketing and in-house magazine which can also be applied in foreign markets.

And the boldest decision of all is to buy Barre Labs. It concentrates on liquid generic pharmaceuticals, which has attained a strong position in the cough and cold remedy market. A.L. Labs decision to buy Barre Labs is laid on the belief that liquid pharmaceuticals are particularly important on the over 65 (geriatric) market and in the pediatric markets (children under 6). The senior citizen group also prefers liquid pharmaceuticals and it is a growing segment. Another advantage of this is that Barre labs will increase the presence of A.L. Labs in the US markets...