Unformatted text preview: INTERNATIONAL
MARKETING
GROUP MEMBERS : Group 1 (PGDM BIOTECH)
DELIGHT STELLA (04)
GOPAL CHOUDHARY (05)
ADINATH CHAVAN (02)
TANAYA CHAUDHARI (17)
VINAYAK MISHRA (19) TABLE OF
CONTENTS
1. Introduction on International Business
2. Emergence of Developing nations in IB
3. Global strategy review and Framework
4. Globalization Process in India What is International Business ?
It can be defined as the expansion of business function from domestic
to any foreign country with an objective of fulfilling the needs and
wants of internnational customers.
The exchange of goods & services, resources and skills among
individuals & businesses in two or more countries. According to International Business
Journal
International business is a commercial enterprise that performs
economical activity beyond the bounds of it's location, has branches in
two or more foreign countries and kmakes use of economic, cultural,
political, legal and other differences between countries. Factors contributing to rapid growth
of International Business
Increase in & expansion of technology
Development of services that support
internation business
Growing consumer pressure
Increased global competition Importance of International
Business
Market Expansion
Brings Foriegn exchanges
Economies of scale
Cost Advantage
Improves international relations
Provide employment opportunities
Government support EMERGENCE OF DEVELOPING
NATIONS IN INTERNATIONAL
BUSINESS PHILIPPINES
Market Overview
13th largest country
populationwise ( > 109
mn)
90% literacy rate
One of the fastestgrowing economies. Market Challenges
Graft and corruption
Stringent Regulatory
System
Underdeveloped
Infrastructure
High price sensitive
market. Market Opportunity
Best prospect market for
U.S. companies
Huge opportunity for digital
infrastructure
3. Armed force equipments is
another major sector PHILIPPINES HEALTHCARE SECTOR 100% Medical equipment and 50% disposable
equipment imported.
1800 hospitals with 60% privately owned
94% of Filipinos are medically insured
(Philhealth)
Growing incidences:
hypertension,
diabetes/kidney diseases,
TB/respiratory ailments,
Cancerand some incidence of HIV/AIDS. PHILIPPINES PHARMACEUTICALS SECTOR
Market growth of 53% from $4.3Bn in 2013 to $8 Bn in 2020.
Factors that played role in growth:
Govt intervention in price control.
acceptance of Generic drug variants.
11th position in the Asia-Pacific region.
3rd largest Pharma market in ASEAN.
Generic med Prescription increased by 11% from 2011 to 2014.
75% of foreign pharmaceuticals companies of the pharma market
Sanofi, Pfizer, GSK.
Fastest growing companies - Sandoz (generic), OEP of Taiwan, Getz Pharma of Pakistan.
Govt initiatives:
BnB project ( Botika ng Barangay) 50-70% cheaper healthcare services for rural areas.
Republic Act A 9502: Cheaper Medicine Act- The Philippine Government in 2007 for the
affordability of quality meds for poor Filipinos.
For growth in the Philippines, the pharma market needs Heavy protection for patents and
trademarks under the Intellectual Property Code of the Philippines.
(Source: KPMG report) VIETNAM
Market Overview
A rising star in Asian
economy
By 2050 Vietnam will
have the strongest
average GDP growth
The U.S. is one of the
largest export
keyplayers. Market Challenges
Corruption
Laws and regulations
The legal system and
contract sanctity
Tax structure
Infrastructure Market Opportunity
Telecommunications, information
technology, power generation,
transportation infrastructure
construction, environmental
project management and
technology, aviation, defense, and
education are promising
opportunities VIETNAM PHARMACEUTICAL SECTOR
171 pharma companies operate in Vietnam, 9% (FIE) Foreign-invested enterprises & 4% JVs.
28% have GMP certification.
Drug Regulatory bodies:
Pharmaceutical products are under the management of the Ministry of Health (MOH),
The Drug Administration of Vietnam (DAV).
The 3 largest public pharmaceutical companies are DHG, TRA, and DMC. (Source: Contract Pharma)
One of the highest growing markets in Asia Vietnam's pharmaceutical industry ~$10Bn from ~$5Bn
in 2015.
High-quality drug demand catalyzed by high economic growth, population growth, high income per
capita.
Vietnams capabilities are limited to generic meds, due to its adherence to WTO (since 2007)
enforcement of International patent law, lack of capability for research and innovation.
Lack of supply chain supports so export business to more profitable market is affected.
MNC's cannot sell pharmac`tical products directly in market, there is an involvement of
distributors. Which has poor transparencyand weak network. WHich results in hike of price.
(Source: LinkedIn article by James Tran Neuroscience PhD) VIETNAM DRUG REGULATORY PROCESS
Drug administration of vietnam
responsible for approval, GMP
assess product license release etc.
NDA reviews expect > 3 years, +1
year for stability data.
Limited time frame of patent
expiry (5-10 yrs) and need of 5
years for regulatory approval in
Vietnamm bring limitation in
investment returns.
There is need of efficiency in
regulatory processes with FDA and
EMA approval. NIGERIA
Market Overview
the largest market in
Africa with a population
of 200 Mn
By 2050 Nigeria will have
GDP of $ 6.4 Trillion
Oil accounts for 90% of
export
U.S is one of the largest
investors with $ 1.3 trillion
China is Nigeris's largest
contractor of about $ 77
Bn worth of
infrastructure projects. Market Challenges
Corruption
Foreign Exchange
Restrictions
Intellectual Property
Regional Security Market Opportunity
Aerospace (aircraft, services and parts).
Agricultural products and equipment.
Computer hardware and software.
Education and training.
Electricity and power generation.
Franchising.
Healthcare services and medical equipment.
Oil and gas equipment. NIGERIA PHARMACEUTICAL INDUSTRY
The total Nigerian Pharmaceutical market is $2Bn according to PMG-MAN.
Prescription market $ 500 Mn.
OTC pharmaceuticals $900 Mn.
Biological products (vaccine, insulin, etc) $100Mn.
a high percentage of the processed raw materials are imported
Heavy machines and equipment used are mostly manufactured overseas and imported.
Labour is still very cheap.
A subsidiary of large multinational companies that manufacture patent-protected, branded
products for local and regional markets.
Global manufactures of generics focus on developed markets in the United States, Europe, and
large-middle income markets such as India and China. Some also have manufacturing operations
in smaller developing countries or JV with local manufacturers.
Generic companies with predominantly national operations that focus on the domestic market
with occasional exports into neighboring countries.
Small-scale local manufacturers usually make a limited number of products, including traditional
medicines to serve local or regional markets. TANZANIA
Market Overview
Tanzania reported
sustained growth of GDP
since 1990 with $ 62.22 Bn
GDP (2019)
By 2050 Nigeria will have
a GDP of $ 6.4 Trillion
Oil accounts for 90% of
export
Total Exports: $ 9,824.4
million for 2019
Total Imports: $ 10,361.7
million for 2019 Market Challenges
Poor legal development
Poor infrastructure
Limited availability of
skilled labor
Property rights issues
Volatile regulatory
environment Market Opportunity
sectors like energy, transportation,
infrastructure, mining, tourism, agricultural
processing and telecommunication. TANZANIA PHARMACEUTICAL MARKET
The pharmaceutical market is broadly classified into the institutional market and the retail
market.
The institutional market is dominated by the Tanzanian Government’s Medical Stores
Department (MSD). It comprises about half the total market: purchases of drugs by MSD in
2008–2009 (92,914 million Tanzanian shillings) constituted about 51 percent of the total
market.
They get global funds for the management of AIDS, Tuberculosis, and Malaria and a total
expenditure of $1030.9 Mn.
Retail pharma consist of 49% of total market, wherein OTC Generic local meds, and imported
are sold under brand name.
All drugs sold are registered under TFDA.
Local companies are Tanzania Pharmaceutical Industries and Keko Pharmaceuticals
More than 50 companies supply meds to Tanzaniawhich includes Cipla, GSK, Shelys (Tanzania
company), Elys ( Kenya company), Pfizer, Novartis, Bristol-Myers Squibb, Sanofi etc are key
players. KENYA
Market Overview
Kenya has domestic
market of 50 million
people also a leading
economy in Sub-Saharan
Africa.
Two-way trade U.S. and
Kenya accounted $ 1.1 Bn
in 2019.
Strong bilateral and
multilateral relationship.
Agriculture is backbone
of Kenya's economy 26%
of GDP. Market Challenges
Corruption
IPR enforcement;
Unemployment and
poverty;
Land reforms and Security Market Opportunity
The U.S. - Kenya free trade agreement
negotiation increased regional and
continental integration.
Leader in the digital economy of the African
region.
Infrastructure growth opportunities. KENYA PHARMACEUTICAL MARKET
The value of the Kenyan pharmaceutical market was estimated at US$ 417 million in 20104 and it is expected
to grow at a Compound Annual Growth Rate (CAGR) of 15.9% between 2009 and 2019 in US dollar terms.
Medicines for the pandemic diseases (HIV/AIDS, malaria and TB), Kenya is highly dependent on donor
funding.
A significant portion of the Kenyan Government’s public procurement of medicines is also sourced outside
Kenya. The Kenya Medical Supplies Agency (KEMSA)’s 2010/2011 government budget for the procurement of
essential medicines was US$ 49.5 million. Of this, about 60% was for Rural Health Facilities (RHF).
Pharmaceutical Manufacturing Companies In Kenya:
Alpha Medical Manufacturers , Aventis Pasteur SA East Africa ,Bayer East Africa Limited, Beta Healthcare
(Shelys Pharmaceuticals), Cosmos Limited, Eli-Lilly (Suisse) SA, Elys Chemical Industries Ltd, Glaxo SmithKline,
Novartis Rhone Poulenic Ltd, Pfizer Corp (Agency) , Pharmaceutical Manufacturing Co (K) Ltd, Pharmaceutical
Products Limited , Phillips Pharmaceuticals Limited, Regal Pharmaceutical Ltd, Universal Pharmaceutical
Limited Cardiovascular, diabetes and anti-infectives constitute the largest and fastest-growing prescription
market segments, and GlaxoSmithKline (GSK) is reported to be Kenya’s leading pharmaceutical supplier, with
around 12% market share. Global Strategy
What is Global
Strategy?
Performance of
business
Interdependeant
nature of global
market Theoretical
approach
Industrial
Organization
Theory
Resourse based
Theory Strategic
Imperative
Competing
Globally
To leverage a
Competative
edge Importance
of Global
Strategies
Interdependency
Configuration
Co-ordination Global Strategy
Tanzania
local contacts,
cultural
appreciation, and
relationshipbuilding are
important Kenya
Market
counseling, export
strategy
development, Nigeria
Relationship
with a locally
registered
company Vietnam
Develop core
strategies and
capabilities Philippines
Eligibility Criteria
for Procurement
of Goods and
Infrastructure
Projects and
Consulting
Services Current Theoretical Approach to
global Strategy
Industrial organizationbased theory Resource based Theory Principle of Coalignment Internal organizational Competitive Advantage resources 5 most influential theory Critical resources Multi-dimentional Construct Fundamental Assumptions Resource based Theorist An Integrated conceptual
framework of global strategy
Internal
organizational
factors Global Strategy
External industry
globalization
drivers Global business
performance Global Strategy- KENYA
Setting out a roadmap for industry to achieve GMP
standards
Strengthening mechanisms for quality assurance of
medicines in the distribution chain
Improving regulatory capacity
Accessing Investment funds
Developing necessary human resources Global Strategy- NIGERIA
Focus first on cities and then on commercially
attractive districts
Create a granular view of the opportunity by TA and
channel
Understand the reality of patients journey for
priority TAs
Improve ability to handle sales and distribution
networks
Build a strong local leadership team Global Strategy- VEITNAM
Structured in mix of both public, private and
foreign agents
Foreign pharma companies are not allowed to
directly distribute on the market
Foreign investors enter by eastablishing joint
venture company
Product registration - Drug registration of
Veitnam
Newly developed drugs take years to enter
veitnam Global Strategy- TANZANIA
Input-output relationships with buyers and
suppliers of inputs are the key linkages
The process of upgrading through learning and
the accumulation of capabilities within health
industries
Sutton's model
Severe competitive ‘squeeze’ - price competition
from imports, and competitive pressure to
invest to upgrade Global Strategy - PHILIPPINES
500 drug traders, 700 drug importers, and 5,000
drug distributors
manufacturing plants in the country closed down
their facilities, and began to import
only few pharmaceutical multinationals have
manufacturing facilities e.g. GSK
importation of medicines (and other goods) has
been traditionally challenging
government has doubled its efforts in improving
the pharmaceutical market External industry
Globalization drivers
Market factors
Cost factors
Competitive factors
Technology factors
Environmental factors Internal
organizational factors
Market orientation
Managerial orientation and
commitment
Organization culture
Organizational capabilities
International experience Global business
performance
Financial performance
Strategic performance
Implementation of Global
strategy
Business competitive position Globalization
Expansion of economic activities across
the political boundaries of nation
Increasing economic openness and
growing economic interdependence
between countries
Opening up of markets to foreign players
and vice versa Benefits
Economic development of a nation
Enhance economic interdependence
Allows firms from developed and
less developed economies to
compete
Inflation less likely to have
damaging impact
Increase competitiveness Globalization in India
Largest and fastest-growing market
India is the 5th largest economy in the
world ( $ 2.94trillion GDP)
In Purchase Power Parity terms, India is
the 4th largest economy
Service sector-fastest growing sector Globalization in India
(After 1947) Phase 1
( 1947-65)
Focus on gov
led investments
in
Manufacturing.
Several large
public sectors
units were set
up.
These
companies exist
even today Phase 2
(1965-80) Gov
involvement in
industry
increased.
Strong
Licensing Laws .
PSU and several
small- scale
private sector
manf. entities
grew. Phase 3
(1980-90)
Partially
opening of
economy to
external trade.
De-licensing of
some key
sectors for
private
participation.
Formation of
Maruti Suzuki Phase 4
Early 1990s Liberalization
of Industries.
Scope of
Licensing
dropped.
CD Slashed
FDI in various
sectors opened
up Phase 5
2000 Onwards
Rewards of
development
learning .
Indian
business
enterprises
became
competitive
and looked at
taking at
global players. Tanzania
Developing country (lower income level)
Economic Growth: 2%
Inflation: 3.3%
Export: -8.6%
Import: 9.12%
Globalization index: 49.73 Largest Pharma market in Sub Sahara Africa
(USD 496mn)
Pharma products import: 3%
Top importing countries:
India, Egypt, Switzerland, USA, South Africa Top exporting countries:
India, China, Japan, Germany Imports of Tanzania (Pharma) Kenya
Developing country (lower middle-income level)
Increased Integration
Economic Growth: -0.31%
Inflation: 5.4%
Export: -0.1%
Import: 11.36%
Globalization index: 55.79 No import tariffs on pharmaceuticals
Pharma products import: 3.29%
Top importing countries:
India, China, UAE, Saudi Arabia, Japan Top exporting countries:
USA, Netherlands, Pakisthan, UK Imports of Kenya (Pharma) Nigeria
Developing country (lower income level)
Economic Growth: -1.79%
Inflation: 11.4%
Export: -26.96%
Imports of goods and services as percent of GDP: 19.80%
Globalization index: 52.12 Exports of Nigeria (Pharma) Veitnam
Developing country (lower middle-income level)
Economic Growth: 2.91%
Inflation: 3.2%
Export: 4.97%
Imports of goods and services as percent of GDP: 103.60%
Globalization index: 50.11 Phillippines
Developing country (lower middle-income level)
Economic Growth: -9.57%
Inflation: 2.6%
Export: -16.25%
Imports of goods and services as percent of GDP: 40.27%
Globalization index: 64.85 THANK YOU ...
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