The policies of health care around the world require

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The policies of health care around the world require that pharmaceutical firms manufacture in multiple locations. Pharmaceutical companies are subject to local clinical testing, registration procedures and pricing restrictions, all of which require that the manufacturing and marketing of a drug meet local requirements. Anti-trust law Note: Companies have to understand fully the competition so as to examine the cost pressure faced by the firm. Also, companies need to examine carefully whether its product or services is highly subject to local responsiveness
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1.1 Self-Test What kinds of product are more likely to face high cost reduction pressure?
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2. Common Strategic Choices
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13 2 Common Strategic Choices International strategy Multi- domestic strategy Global strategy Transnational strategy
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2 Common Strategic Choices Transnational Exploit experienced based cost and location economies , transfer core competencies within the firm, and pay attention to local responsiveness needs. International create value by transferring skills to local markets where skills are not present . Multidomestic oriented toward achieving maximum local responsiveness . Global increase profitability through cost reductions from experience curve effects and location economies.
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15 2 Snippet: Experience curve effect ii. Economies of Scale: Reduction in unit cost achieved through volume production. Sources: Spread fixed costs over volume/ Employing specialized equipment or personnel.
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