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Warner Lambert Case

Essay by   •  April 11, 2012  •  Essay  •  501 Words (3 Pages)  •  1,488 Views

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Warner Lambert Case

1. Warner Lambert faces an increased competitor front due to their expired patents. Companies such as CVS and Walgreens have an advantage to manufacture the same products at a cheaper price due to Warner Lambert's 20 year patents. The majority of Warner Lambert's profits come from these drugs and other items from Warner Lambert do not yield such a high return. Warner Lambert attempt to produce new drugs proves to be not easy because of stricter FDA and government regulations. Warner Lambert has the opportunity to be successful in the consumer health care industry, however they must continue to strengthen their product portfolio and be willing to invest time and money.

2. Warner Lambert may use the Boston Consulting Group Matrix to evaluate each sector of their business and choose what action to take, whether it be investing or decreasing production and research. Warner Lambert's popular product known as Halls should be continued while other lamer and more costly products such as Lopid could be put to rest.

3. Warner Lambert could apply the Porter Generic Strategy Model as well. Lopid, one of Warner Lambert's products, uses differentiation as a strategy.

The cost was not as much of an issue because they would either have to get out of the market or use a new cost leadership strategy to take sales from their competitor. Warner Lambert also differentiates it's portfolio by providing a disposable razor targeted at lower income males that do not purchase high end razors.

4. For Warner Lambert, sales is a good determinant of evaluation of success. Products could be determined effective products if sales were up. Costs are another way Warner Lambert could evaluate their products and company. If the cost of producing a product outweighed the expected return, the product could be cut from production. Warner Lambert could also evaluate it's competition's success and the industry leaders' market shares. Warner Lambert could use all of these evaluations to determine their success with particular products and their strategies and chances in an industry.

5. Warner Lambert is a global company. They focus on providing products and using global strategies to succeed in an industry. Their products provide various uses to customers around the globe, such as their Halls product. Their ultimate goal is to be a global healthcare and pharmaceutical company that is the leader of a global industry. They also are working to be the largest manufacturer of candy items. They use "glocal" efforts for many of their products they manufacture.

6. Warner Lambert has successfully distributed the product Listerine globally. They have created a product that has changed many countries dental hygiene. Listerine has been shaped to fit any region of the world and consumers' wants. Different flavors,

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