YunnanBaiyao云南白药战略.pptx

Contents Introduction Issue identification Problem analysis External 5 force model PEST Internal VRIO Vertical integration Diversification Recommendations Introduction 1999-2003 1902-1955 1956-1998 Vertical integration Research development reforms Organizational restructuring Establish new strategies Qu zhanghuan panacea State-own company IPO in 1993 Integrate to a group in 1996 Fist step to modern company Problem identification Should YB diversification into health care products such as toothpaste? Should YB cooperate with 3M in the area of transdermal products and internalization? Was it feasible to pursue both? Chinese pharmacy Industry analysis Porter’s five forces model PEST Analysis Factors Political New standard and medicine supervision network established by the government Economic China joined WTO in 2011 Giant foreign company enter China Increasing raw material cost Rising demand especially in the rural market Social Strong affinity to herbal medicine Increasing conscious about environment protection Tech Western pharmaceutical methodology introduced into the herbal medicine system RD ability is weak Market development skills Resource and Capabilities Analysis Value-chain approach VRIO Framework Resource classification Firm Resource classification Tangible resources °financial advantage: listed on A share market, brought much needed funds (1993) °corporate governance: listing company have standardized operation ° formula and manufacturing processes was listed as a top national secret and placed under national protection Intangible resource °long history and good reputation °RD(2000) ° bioactivity fingerprint standards (herb- planting base) Value Chain Support Activities Firm infrastructure: listing company (1993); Margin HRM: compensation point system Technology development : RD system Procurement: herb- planting base, Inbound logistics quality assurance system Operations ERP system production order system