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16-5 Entering International Markets Your pharmaceutical firm is seeking to open up new international markets by partnering with various local...
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please help.16-5 Entering International MarketsYour pharmaceutical firm is seeking to open up

new international markets by partnering with various

local distributors. The different distributors

within a country are stronger with different market

segments (hospitals, retail pharmacies, etc.)

but also have substantial overlap.

a. In Egypt, you calculate that the annual value

created by one distributor is $60 million per

year, but would be $80 million if two distributors

carried your product line. How much

of the value can you expect to capture?

b. Argentina also has two distributors with

values similar to those in Egypt, but both are

run by the government. How does this affect

the amount you could capture?

c. In Argentina, if you do not reach an agreement

with the government distributors, you

can set up a less efficient Internet-based

distribution system that would generate

$20 million in value to you. How does this

affect the amount you could capture?

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Subject: Business, Economics

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