Pharmaceutical Industry Adaptation Strategies

Question: Discuss about thePharmaceutical Industryfor Adaptation Strategies. Answer: Three AAA Framework, Business Model and Cage Framework to Evaluate and Analyze the Merck MSD and the Boehringer Ingelheim Merck MSD Application of Three AAA frameworks Adaptation Strategies The adaptation strategies of the Merck MSD Company with various kinds of different medicines to enhance expertise in solutions to different kinds of diseases have well provided a significant recognition to the Company. The list of various medicines such as Januvia, Remicade, Keytruda and many more do illustrate the adaptability of the Company with various kinds of medicines. Moreover, the Company has gained its expertise in manufacturing medicines for different diseases such as diabetes, cancer, hypercholesterolemia and many more. Aggregation Strategies Ever since its inception in the year 1891 as a subsidiary of Merck, it continually evolved as a good company, which kept on merging with other dominion companies in the pharmaceuticals industries to enhance their expertise in serving the humanity with innovative medicines (Willcocks 2013). In 1953, the Company merged with Sharp Dohme, Inc. of Philadelphia to enhance its marketing, sales distribution capabilities. In addition to this, the Merck Company acquired Idenix Pharmaceuticals and the Cubist Pharmaceuticals in the year 2014 to enhance their level of operation by bringing expertise in every domain (merck.com, 2017). Arbitrage Strategies The merger acquisition of the Merck MSD Company with the Sharp Dohme, Inc. of Philadelphia to enhance its marketing, sales distribution expertise simply represent the strategy of the Company to attain maximum benefits by investing lesser expenditure. Moreover, the merger acquisition of the Sharp Dohme, Inc. of Philadelphia has opened up ample of option to the Merck MSD Company in attaining a comparatively increased profitability by incepting a lesser expensive distribution strategies (Willcocks 2013). Application of Business Model The mergers and the acquisitions process of the Merck MSD Company ever since its inception in the year 1891 defines the business model of the Company. Moreover, the Company believes in expanding its domain of expertise by acquiring merging with other companies. As a result of which, the Company merged with Sharp Dohme, Inc. Company of Philadelphia in the year 1953 to gain expertise in the distribution sales and the marketing operations (Marjanovic, Fry and Chataway 2012). Application of Cage Framework Merger acquisition of the Merck MSD Company with different other companies in different parts of world clearly explain that the Company is well versed with all the cultural, administrative, geographical and economical phases of a Cage Framework (Reis, Ferreira and Santos 2013). Acquiring different companies such as Idenix Pharmaceuticals and Cubist Pharmaceuticals in 2014 do speak about the shrinking of the economical distances, which the Merck Company has achieved (merck.com, 2017). The Boehringer Ingelheim Application of Three AAA Frameworks Adaptation Strategies The list of numerous medicines for consumer health care and animal health do explain the adaptability nature of the Company with various kinds of opportunities efficiently. Medicines such as Antistax, Zantac, Silomat, Metacam, Vetmedin and many more like this simply illustrate the adaptability nature of the Company for the betterment of their business and heaths of Human being and animals (boehringer-ingelheim.com, 2017). Aggregation Strategies Tying up knot with other companies and selling some important business of it to other companies, the Boehringer ingelheim has always tried to expand its expertise to meet with the changing demand of the pharmaceutical industries (Cohendet 2013). The selling of its Roxane business to Hikma Pharmaceuticals Plc in the year 2015 and on the same day, announcing the partnership with the Hanmi Pharmaceutical to commercialise and develop HM61713 for treating lung cancer do illustrate the policy of the Company (boehringer-ingelheim.com, 2017). Arbitrage Strategies Acquiring products from different supply chains across the globe to enhance the profitability margin is one of the core features of its operation. Moreover, 20 production plants in not less than 13 countries do simply illustrate the arbitrage strategies of the Company to reduce their manufacturing cost to the best feasible level. Nevertheless, this is also helpful in enhancing the profit margin for the Company as the cost of manufacturing has been reduced. Application of Business Model The extensive development process of the Company by acquiring other companies in respective years to add extra domains in their expertise speaks the volume of their operations. Moreover, the acquiring of the Merial Company in the year 2016 to enhance their expertise in the animal healthcare and to become a global leader is a clear indication towards the human values of the Company. Nevertheless, the Company made partnership with the Hanmi Pharmaceutical to commercialise and develop medicines for the lung cancer patients (Pisano 2015). Application of Cage Framework The Company believes in diminishing the distances and the differences with some other companies to endure a healthy financial performance alongside the human wellbeing (Schneider and Carden 2014). The acquisition of the Merial Company to provide their cares for the animal lives and to become a global leader is a clear example of their diverse culture relationships with other companies. The Company has moved to a feet further in destroying geographical and economical distances when it made partnerships with the Hanmi pharmaceuticals to commercialise and develop HM61713 medicine for the lungs cancer (boehringer-ingelheim.com, 2017). Comparison Between Two Companies Based on above Cited Frameworks Merck MSD and Boehringer ingelheim are such pharmaceutical companies that are continually deploying new thoughts and beliefs to enhance their business operations. However, there are certain differences in their objective of operation (Willcocks 2013). Moreover, Merck MSD Company does merger acquisition to enhance their other domain such as when it merged with Philadelphia based, Sharp Dohme, Inc. Company to enhance their expertise in the marketing the sales strategies. However, merger acquisition of the Boehringer ingelheim Company is more about developing new medicines for different diseases such as when it prepared HM61713 for the lungs cancer patient with the joint efforts from the Hanmi Pharmaceutical. Nevertheless, the Merck MSD Company has its own expertise in the chemical manufacturing and the scientific research processes. Recommendation for Both the Companies The one point of recommendation for the Merck MSD Company is for building relationships with those companies that are expert in producing different kinds of pharmaceutical medicines. Moreover, this would bring innovation in its medicine production and would enhance the commercialization of the Company with different products line. The one point of recommendation for the Boehringer ingelheim is for building partnerships with such companies that are experts in marketing, sales distribution of medicines. Moreover, this would enhance their marketing sales strategies that are extremely helpful in becoming a global leader for a company, which is already producing innovative medicines such as HM61713. References boehringer-ingelheim.com. (2017). About Us | boehringer-ingelheim.com. [online] Available at: https://www.boehringer-ingelheim.com/about-us [Accessed 13 Feb. 2017]. Cohendet, P., 2013.Accelerating Global Product Innovation through Cross-cultural Collaboration: Organizational Mechanisms that Influence(Doctoral dissertation, Universit de Poitiers). Marjanovic, S., Fry, C. and Chataway, J., 2012. Crowdsourcing based business models: In search of evidence for innovation 2.0.Science and Public Policy,39(3), pp.318-332. merck.com. (2017). Helping the World Be Well. [online] Available at: https://www.merck.com/about/home.html [Accessed 13 Feb. 2017]. Pisano, G.P., 2015. You need an innovation strategy.Harvard Business Review,93(6), pp.44-54. Reis, N.R., Ferreira, M.P. and Santos, J.C., 2013. Institutional distance and cross-border mergers and acquisitions completion: A conceptual framework.available at: www3. eeg. uminho. pt/economia/nipe/iibc2013/4.2. pdf (accessed February 11, 2014). Schneider, B.Z. and Carden, W.A., ., impacts of globalization: helping students see the big picture.international journal of social science research volume3 (2014), p.17. Willcocks, L.P., 2013. Business and management in a global context.