Ranbaxy’s Globalization Strategies and its Foray Into the US

Ranbaxy’s Globalization Strategies and its Foray Into the US

Entry and expansion strategies of Ranbaxy in foreign markets

The case discusses the globalization efforts of Ranbaxy Laboratories (Ranbaxy), a leading pharma company in India. Ranbaxy started off distributing drugs in foreign countries and went on to play a major role in the global generics market. By 2004, the company had manufacturing plants in 10 locations, ground operations in 45 countries and its products were sold in 70 countries across the world. The case describes Ranbaxy’s foray in the US markets where it made a slow entry and adopted the route of Para IV filings to challenge the supremacy of big pharma companies. By the first quarter of 2005, Ranbaxy’s sales in the US decreased by US$ 25 million, which was attributed to severe price erosion in these markets due to increasing competition among the US generics. The case describes the challenges facing the company in the US and examines Ranbaxy’s growth strategy for the US markets.

Issues:

» Entry and expansion strategies of Ranbaxy in foreign markets
» Growth initiatives of Ranbaxy in the US
» Challenges faced by Ranbaxy in the US

 

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