Business Stategy - Transforming Sanofi-Aventis Essay

Business Stategy - Transforming Sanofi-Aventis - Essay Example(Fred Pringle, Brian H. Kleiner. 1997) Sanofi-Aventiss product portfolio includes in it tether medicines for cancer, diabetes, epilepsy, sleep disorders and other healthcare problems. The main objective of Sanofi-Aventiss inquiry and development is to provide the patients with economic medicines at the right time. And for diseases that are difficult to treat, they try to provide real patient benefit by multiplying their scientific approaches. This is also the reason why clinical trials are carried out to treat diseases. (Philippe Hermel, Annie Bartoli. 2001) Sanofi-Aventis makes sure that research doesnt fail to take into account the complexities of human body. TRENDS OF PHARMACEUTICAL INDUSTRY First of all we demand to examine the trends of pharmaceutical industry which include structural changes that have lead to important transformations, industrys genuinely strong dependence on research and development and some significant factors leading a future sales growth. (Fred Pringle, Brian H. Kleiner. 1997) Environmental analysis (PEST) Increasing political attention In the recent years, importance of healthcare as a component of social welfare has increased as a effect of which the industry has been receiving increased political attention. ... So, Sanofi-Aventis is playing a very unique role as rock-steady health is an essential social and personal requirement. The pharmaceutical companies nowadays are trying hard to confirm good communications with the society because of the increasing media attention. Technological advances The industry players are adapting to the new environss faster than ever. every this is being forced by modern technological and scientific advances in science. These advances have also led to an increased expenditure on R&D by companies to promote further innovation. Legal environment Pharmaceutical industry is a very highly regulated industry. There are a sens of leg al and compliance overheads that the company has to bear as a result. Porters five forces bar to instauration patent restrictions and really high research and development costs are the major barriers to entry for new entrants. Industry competition competition in the industry is very high. The usefulness is for innovators. Suppliers the power of suppliers is very low. Buyer buyer power is also low in the industry. Substitutes because of patents there are less substitutes provided there are more substitutes after patents expire. Increased competition in the industry The competition in this industry is intense. There have been a lot of new entrants in the industry lately also a number of mergers and acquisitions have taken place. Therefore, the changing face of pharmaceutical industry suggests that competitive advantage is being redefined all the time. In order to achieve sustainable growth and maintain presence the aboriginal industry players are changing their organizational str uctures. Structural changes There is a