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Running head: TEVA PHARMACEUTICAL INDUSTRIES, LTD1Teva Pharmaceutical Industries, LtdBUSN 620: Strategic ManagementHa NguyenAmerican Public University
TEVA PHARMACEUTICAL INDUSTRIES, LTD 2Teva’s competitive advantageTeva Pharmaceutical Industries, Ltd competes in the generic market utilizing a low cost strategy. Teva’s size and scale has enabled it to obtain the leadership position in the global pharmaceutical generic market. Throughout the years, not only has Teva been able to establish a good relationship with customers, employees, and suppliers; it also been able to demonstrate a unique strength to the industry through utilization of many successful strategies in order to profitably grow its business. Some of the characteristics which contribute to Teva’s competitive advantage are (1) its offerings of a broad range of products, (2) its volume-based discount and pricing bundle, and (3) its cost-effective supply chain operations. Regardless of the types of generic drugs that customersmay find themselves in need of, it is possible to engage in a business transaction with Teva as they can readily fulfill such needs. The more Teva produce, it is able to become more efficient and further reduce the cost of production. In order to maintain its low cost image, the company would go as far as to credit back the monetary difference to their business partners if their competitors have decided to lower the drug’s price after a contract between Teva and a third party was established. This unprecedented size and scale empowered Teva be very efficient whenengages in capital-intensive tasks, something that cost-conscious chains find very attractive. “The backbone of Teva’s supply chain was managed through several centers of excellence located globally to take advantage of differences in local labor skills and costs, tax provisions, and intellectual property regulations”’ (as cited in Pearce II & Robinson, 2012, p. 21—18). By being closely involved in all phases of the supply-chain process, Teva is able to strategizes the best tactics in order to effective operates its business.Relentless efforts to keeps the product pipeline robust and to improves the quality and price of its products was also some driving