Documentos de Académico
Documentos de Profesional
Documentos de Cultura
FACULTY
Engr. Yousuf Ali
Lecturer – PAF KIET
SUBMITTED BY:
Beenish Akhter (52648)
M. Usman Qureshi (52059)
DATE
April 18th , 2010
LETTER OF AUTHORIZATION
The report prepared on “ALCON LAB INC.”, was given by Sir Yousuf Ali,
supervisor of our report at PAF-KIET.
This report covers the strategic management part of “ALCON LAB INC.”. We
took the responsibility to complete the report in the assigned time.
Sincerely,
LETTER OF TRANSMITTAL
Dear Sir,
Here is the report concerning “ALCON LAB INC.” which you have assigned us.
This report is now finished, and it is attached to this cover memorandum. This
report is the part of our STRATEGIC MANAGEMENT course.
As a result of our research, we have come to appreciate the superior work being
done. We have done an entire investigation over the past few weeks. We have
implemented all the knowledge that we have gained during the course by applying
it on the chosen organization.
If you want any additional information, we would be pleased to meet with you.
Cordially,
LETTER OF ACKNOWLEDGEMENT
First of all thanks to ALLAH (SWT), the most Gracious and the most Merciful.
He (SWT) provided us this opportunity to study in this prestigious institution.
We would like to offer our sincere thanks to our respected teacher Sir Yousuf
Ali, who is well known facade for his vast expertise. His guidance in our project
on “ALCON LAB INC.”, further provides us a great opportunity to learn the
implementation of the courses. We believe that this experience have not only
added value to our knowledge but have also strengthen the core knowledge of our
entire educational career. It was his dedication in supervising the course that made
us study and learn practical life matters in a well-defined manner. He, with his
vast experience and knowledge, lead us in every step during the course and also in
the preparation of this report.
We would again like to take this opportunity and express our acknowledgement
distinctly to Sir Yousaf Ali for directing us about the technical aspects of the
report.
Sincerely,
TABLE OF CONTENTS
S.No Topic Page No.
01 Title 01
02 Letter of Authorization 02
03 Letter of Transmittal 03
04 Letter of Acknowledgement 04
05 Executive Summary 07
06 Alcon at Glance 08
07 People 09
08 Research & Development 09
09 Business Focus 10
10 Corporate Responsibility 11
11 Corporate Governance 12
12 Environmental Management & Safety 13
13 Core Competences 14
14 Alcon’s Values 16
15 Workplace & Culture 17
16 Alcon’s Product Categories 18
17 Alcon’s Organogram 23
18 Industry Analysis 25
19 PORTER’s Analysis for Industry 27
20 Financial Analysis 28
EXECUTIVE SUMMARY
This report aims to cover a thorough analysis of the strategic management of Alcon
Laboratories, Inc. It also included the study of ophthalmic pharmaceutical industry of
Pakistan, major competitors in the industry and various trends with respect to market
share and growth.
The complete analysis of the company’s long-term is provided, based on which the future
strategies are selected.
The above situation and analysis reveals that Alcon Lab Inc. has some major competitive
edge to be successful in the market, including strongest R&D and high production
capabilities. Keeping in view the all factors, the company should adopt “Intensive
Strategies” as intensive efforts are required to maintain the competitive position. The
alternative strategies are “Market Development”, Market Penetration” and Product
Development”.
The major objectives of the company are to gain market share through increasing sales
and introducing new products by utilizing its strong R&D capabilities. Keeping in view
all the e analysis, “Market Penetration” and “Product Development” strategies are
suggested for implementation.
ALCON AT-A-GLANCE
Founded in 1945, Alcon Laboratories, Inc. traces its roots back to two pharmacists,
Robert Alexander and William Conner, who opened a small pharmacy in Fort Worth,
Texas, and combined the first syllables of their last names to create the name Alcon.
Majority owned by Nestlé S.A. and incorporated in Hünenberg, Switzerland with U.S.
operations based in Fort Worth, Texas, our team of over 15,000 dedicated employees
worldwide develops, manufactures, and distributes hundreds of eye care products in more
than 180 countries. This seasoned and diverse group of people, who encircle the globe,
In March 2002, Alcon conducted a partial initial public offering (IPO) on the New York
Stock Exchange (NYSE). Nestlé still owns approximately 75 percent of the company.
Alcon's core business is centered on three key divisions – Surgical, Pharmaceutical and
Consumer Vision Care. As of 2008, sales reached US$6.3 billion.
We conduct our business from Alcon offices located in 75 countries around the world in
regions including Canada and the Far East; Europe, Middle East and Africa; Latin
America and the Caribbean; and the United States.
PEOPLE
Although the average tenure of Alcon employees is just nine years, it is not uncommon to
find people who have worked for Alcon for 25 years or more. The dedication and
commitment is contagious – often when people arrive, they see no reason to leave.
Instead, they see several reasons to stay. Alcon employees are constantly being
challenged and rewarded for excellence. It's easy to be proud of who we are and what we
do. More importantly, it's easy to be proud of how we do it. We don't just enhance,
preserve and restore vision; we foster an Alcon family of over 15,000, around the world
who dedicate themselves to this same mission.
Alcon's R&D organization is the largest of its kind in the world consisting of more than
1,350 employees, including approximately 300 individuals who are M.D.s, O.D.s or
Ph.D.s. Our researchers, scientists and engineers work in one of five state-of-the-art
research facilities in the U.S., Spain and Switzerland and partner with leading academic
institutions, other healthcare companies and individual physicians to ensure that our
products are among the best in eye health.
BUSINESS FOCUS
Alcon's core business is centered on three key divisions – Surgical, Pharmaceutical and
Consumer Vision Care.
Surgical
Pharmaceutical
Alcon continues to build its position as the worldwide leader in pharmaceuticals for the
eye by continuing to advance treatments for diseases such as glaucoma, infection and
allergy, while also expanding focus into relatively unknown areas such as, macular
degeneration, diabetic retinopathy and other sight-threatening diseases. Our intraocular
pressure (IOP)-lowering TRAVATAN Z® Solution is changing the treatment of
glaucoma, still a leading cause of blindness today.
As the world's second largest manufacturer of consumer vision care products, Alcon
continues to produce innovative products to meet the eye care needs of consumers
globally. Our consumer vision care product line includes contact lens care products such
as our line of OPTI-FREE® contact lens solutions, as well as a full line of artificial tears
that provide comfort to individuals suffering from dry eye. Moreover, our consumer
vision care allergy eye drops and ocular dietary supplements are formulated to enhance
eye health as people age.
CORPORATE RESPONSIBILITY
We recognize we offer what many people need, whether or not they can afford it or even
know it exists. As a result, a significant part of our culture revolves around our
responsibility to the community and to humanity as a whole. Many of our
charitable endeavors involve services for, and support of, the communities in
which we operate and live. We also offer a patient assistance program to assist
those in need of our therapies but who lack the resources to pay for them.
Commitment to Quality:
CORPORATE GOVERNANCE
At Alcon, we believe that how we conduct business says a lot about our company – thus
we strive to operate with a high level of honesty and transparency. This commitment to
being transparent, upfront and forthright has become the foundation for all that we do.
Dedication as a Corporation:
ISO 14001;
The international environmental management standard, ISO 14001, was revised in 2004
and Alcon has achieved certification at all of our manufacturing and Research &
Development facilities.
REACH;
Safety Practices:
CORE COMPETENCIES
Our financial commitment to research and development surpasses all others in the eye
care industry. Annually we invest up to 17 percent of our pharmaceutical revenue and
nearly 10 percent of our overall revenue back into research efforts totaling US$3 billion
over the last five years. This investment will grow to at least US$3 billion over the next
five years. To put this in perspective, we invest more in research and development than
any other eye care company worldwide.
Manufacturing:
Sales:
Every member of our global sales team undergoes rigorous training on all major eye
conditions and treatments with special attention on surgical systems and devices or
pharmaceutical and consumer vision care products. Additionally, our sales force provides
Alcon's customers with access to clinical education programs, technical service
assistance, practice management programs and surgical training sites located around the
world.
ALCON’S VALUES
• Integrity
We conduct our business ethically and legally while creating a safe and secure
workplace.
• Innovation
We are focused on discovering new advances that will lead to improved diagnosis and
treatment of eye diseases and conditions.
• Quality
We strive for excellence in developing and manufacturing differentiated products to
improve vision and eye health.
• Commitment
We are dedicated to providing unmatched support and service to all customers and
patients, as well as serving and enriching the communities where we live and work.
• Respect
We promote a culture that fosters fairness and open communication among employees
and values individual differences.
• Performance
We are passionate about advancing the preservation, restoration and enhancement of
sight around the world.
By focusing on team efforts and individual growth, Alcon fosters an environment where
the accomplishments of a single person can affect many in a positive way. Alcon
employees work hard to find ways to better themselves and their communities –
producing positive results while providing those who work at Alcon with a larger sense
of purpose.
Community Involvement:
Many of Alcon's commitments involve support for the local communities in which we
operate and live. This includes support of employee volunteerism, school programs and
other deserving local non-profit organizations.
Alcon believes that investing in the development and training of its employees is a step
towards investing in the advancement and future success of eye health worldwide.
Alcon is in the business of providing a better quality of life for individuals using our
products. This quality commitment extends to our employees as well – thus the overall
health and well being of our employees is paramount.
Pharmaceutical Products
Eye Allergies
Eye allergies, also known as allergic conjunctivitis, often result in red, swollen, itchy
eyes that create a range of annoyances from mild to severe. These allergies can be caused
by a number of situational or environmental factors – animal hair and dander, and pollen
from trees, grass and other plants.
Eye Inflammation
Eye inflammation most commonly occurs in response to eye surgery, which while
necessary, can upset the delicate tissue of the eye. It can also occur as a result of
infection.
A. Glaucoma
Dry Eye
Dry eye describes a disorder that causes inadequate wetting of the eye. Millions of people
worldwide suffer from dry eye, making this a very common condition. It usually
manifests itself as dryness, itchiness or scratchiness, burning or stinging, tired eyes and
sometimes includes sensitivity to light. In short, it feels like there's something in the eye
causing general discomfort. Dry eye can occur as a result of the normal aging process,
exposure to air pollution or other environmental factors, or in conjunction with disease.
B. Eye Vitamins
Alcon is the worldwide leader in ophthalmic surgical products, ranging from cataract and
refractive surgery and intraocular lenses to surgeries requiring vitreoretinal systems,
sutures, needles and knives. More eye care professionals rely on our ocular surgical
products than any other company in the world. Highlighted below are some of our key
products.
Cataract Surgery
Cataracts, the leading cause of treatable blindness, create vision cloudiness and develop
for a variety of reasons, but most commonly result as part of the aging process. However,
they can also be caused by long-term ultraviolet (UV) light exposure, trauma to the eye
and as secondary effects of diseases such as diabetes. Cataracts typically require surgical
removal and replacement of the eye's lens. We offer products in all areas of cataract
surgery, including equipment for lens removal and insertion; intraocular lenses (IOLs) to
replace the eye's natural lens; solutions and viscoelastics to protect the eye; and sterile
surgical kits to streamline surgery.
Vitreoretinal
Refractive Surgery
Alcon is the largest manufacturer of contact lens care products in the world and is widely
known for its artificial tears for dry eye therapy and eye vitamins to help protect eye
health. While we manufacture and sell dozens of eye care products around the globe,
some of our more widely used products are highlighted here.
The surface of a contact lens may develop dry patches and protein deposits, especially
late in the day. These dry patches interact with the eyelids, causing a scratchy, gritty,
almost itchy sensation. They also interact with tear proteins, which can make the lens
dirty. The dry spots can actually repel rewetting drops, which is why rewetting drops may
not always be an adequate fix. With all the additional eye care needs of contact lens
wearers, it is important to select the right contact lens solution.
ORGANOGRAM
ALCON’S
CEO
SALES
HR FINANCE R&D
HEAD HEAD
HEAD HEAD
MANUFACT
MARKETING SUPPLY
-URING
HEAD CHAIN
HEAD
HEAD
CAFE
CANADA,
AUSTRALIA, FAR JAPAN USA
EAST
EURMEA
LACAR Europe, Middle East,
Latin, Caribbean Africa
ORGANOGRAM OF PAKISTAN
COUNTRY
MANAGER
(OPTHALMIC)
BUH SURGICAL
BUH PHARMA (SURGICAL ADMINSTRATI-
(PHARAMA MARETING MARETING AND VE
AND SALES) SALES) HEAD
FINANCE
6 FIELD 6 FIELD 6 FIELD HR STAFF
6 FIELD OFFICERS OFFICERS OFFICERS STAFF
OFFICERS
INDUSTRY ANALYSIS
The global ophthalmic pharmaceutical industry offers innovative, automated and quality
ophthalmic devices and equipment to optometrists, ophthalmologists and optical retailers.
This industry has a total size of US $ 3.25 billion. Eyewear sector is considered to be one
of the largest markets of this whole ophthalmic instruments industry. The market for
ophthalmic instruments is occupied by variety of products such as clamps, retractors,
needle holder, vasectomy devices, hooks, forceps, disposable, suture rings, needles,
blades, knives, rotators, picks, manipulators, spatulas and retractors. Generally,
ophthalmic instruments are very costly and require careful cleaning, lubrication and
handling. Stainless steel is the most common material used for making these instruments
and other materials that can also be used includes chrome, nickel, aluminum, or rubber.
Driven by demographic trends, such as an increasing aged population, the global
ophthalmic pharmaceutical market is set to become a serious growth area experiencing a
compound annual growth rate of 11.11 per cent to 2012.
• Glaucoma
• Age-related macular degeneration
• Dry eye syndrome
• Ocular allergy
• Ocular inflammation
• Ocular infection
With an increasing aged population and unmet medical needs this market is set to grow
rapidly, Eye diseases such as cataract, glaucoma, diabetic retinopathy and age-related
macular degeneration are increasingly important in the general scope of medical practice.
Consequently, at the International level and National level, Governments are promoting
ophthalmology education for medical students through a universally applicable
curriculum. Ophthalmic patient care services are provided within a broad range of eye
and healthcare programs. For efficacy and efficiency, the ophthalmologist is in
Eye care in Pakistan is still in the early stages of development. Widespread poverty and a
weak health system underlie the poor health status of the population. Government
funding continues to be minimal, equal to around 3% of GDP and achieves little more
than maintaining the status quo, However as the economy improves, the level of spending
may well begin to rise. The Pakistani ophthalmic market remains beset with difficulties.
Strict government control over pricing has made many drugs uneconomical, with the
result that they either become available only on the black market at inflated prices, or
disappear completely. In this environment, manufacturers, both local and foreign-owned,
have proved unable to generate the profits needed for capital investment. This is not
helped by a regulatory system best described as rudimentary. In the wake of all these
potential threats, the organizations existing in the industry will have to be bringing in
internal efficiencies and make their Supply Chain stronger. Pakistan remains an
"Outsider" in the global community of nations providing some form of intellectual
property protection for ophthalmic pharmaceutical products. At present, there is no
product patent protection in Pakistan, but only protection for processes. It is incumbent
upon the patent holder in Pakistan to prove that the "pirate" is using the same process as
the inventor, which is practically impossible in the current Pakistan legal environment.
One of the most important current issues for our industry in Pakistan is that this piracy
continues to inflict losses on the research-based ophthalmic pharmaceutical industry.
Alcon is at top Position and there are 3 rivals Rimigton Pharmaceutical, Novartis
FINANCIAL ANALYSIS
The Alcon’s profitability is in decreasing trend as from year 2008 to year 2009. Analysis
of sales reveals that the sales growth of Alcon is decreasing by 18 % from year 2008 to
year 2009 in Pakistan. But as it’s mentioned the Alcon is International Company so when
we convert Alcon’s profit from Rupees to Dollar it not gives significant value due to
devaluation of Rupee.
The expenses have grown by 5% as compared to previous years. The net income of
Alcon Lab Inc. have marginal increase of year 2009 as compared to year 2008, this
marginal increase is due to the orders which was made in year 2008 and completed in
year 2009 have more dollar value as compare to year 2008.( dollar value increase in
2009). Over all the financial performance of Pakistan with in a CAFÉ region is low. In
contrast to other 4 regions, namely Japan, USA, LACAR, EURMEA; CAFÉ have
growing trend.
Vision:
To make Alcon the most trusted eye care company worldwide and the first choice of eye
care professionals and their patients.
Mission:
Alcon has one mission to discover and develop in a way eye care products that improve
the quality of life by helping people see better. We accomplish this by partnering with
eye care professionals around the world to advance the treatment of eye disease and help
people experience the best vision possible. We are committed to conducting all of our
business activities to the highest ethical and legal standards and are dedicated to quality
and continuous improvement in everything we do. We seek significant return to our stock
holders based on continued pursuit of excellence and creating career opportunities for our
employees.
The proposed mission statement, below, includes all the elements of a mission statement:
Elements Yes/ No
4. Concern for growth Yes (seek significant return to all our stockholders)
8. Concern for public image Yes (highest ethical and legal standards)
SWOT ANALYSIS
Strengths:
1. Offering a wide range of products in three major ophthalmic areas: Surgical,
pharmaceutical and Consumer Vision care.
2. Providing a variety of Original Research.
3. Providing the highest standard of quality and innovative ophthalmic products to the
customers.
4. Emphasis on the Health & Safety of workers and the protection of the environment.
5. Strong Research & Development function having the largest number of1350
employees including 300 individuals who are M.D.s, O.D.s Ph.D.s who work in one
of the five state of art research facilities.
6. Strong distribution center
7. Effective and efficient Research and MIS software used.
Weaknesses:
1. Lack of internal control over sales force resulting in declining sales trend over last
two years in Pakistan (CAFE).
2. Failed to gain FDA approval of Patanol in 2009.
3. Sales people of Pakistan lacks skills of communication and interpersonal.
Opportunities:
1. High market growth of 12% per annum.
2. Highly competitive market comprises of both MNCs and national corporations.
3. Under-developed Healthcare industry in Pakistan with a weak health system
underlying the poor health status of the population.
4. Growth trend of private sector health centers and hospitals in the country, creating
health awareness and medical facilities.
Internet- providing more advanced facilities for advertising of products.
5.
Threats:
1. The multinationals are facing threat due to the trend of increasing market share of
national corporations over the past years. Major contribution to this threat is from
Rimigton pharmaceutical and berrtt hodgson pharmaceutical .
2. No product patent protection in Pakistan.
3. Generic products at cheaper prices. Piracy continues to inflict losses on the research-
based pharmaceutical industry. .
4. Due to poverty and unawareness of health issues, the patients are inclined towards the
cheaper generic products in the market, compromising the quality issues.
5. Strict government control over pricing. No increase in prices of drugs over the last 07
years.
6. Devaluation of Pakistan’s currency over the years.
7. Political uncertainty and Law-n-order issues of Pakistan causing a serious threat for
multinationals for their future growth and investment in the country.
8. Strong media advertising by competitors.
LONG-TERM OBJECTIVES
The long-term objectives of the company, targeted to be achieved within next five years,
are:
1. To sustain leadership as the 1st largest ophthalmic company of Pakistan with a market
share 35.5% by enhancing access to advance way of treatment of eye disease in next 2 to
3 years.
2. To gain the organic sales growth rate in all key businesses of more than 8.3% in the
Pakistani market.
4. Work on the interpersonal skill, selling skills, soft and hard skills, and communication
skills of Sales executive and ensure 100% improvement in next 2 to 3 years.
Weight
Weig Rati
Key Internal Factors ed
ht ng
Score
Strengths
4
Providing a variety of Original Research 0.10 0.40
3
Emerging markets expanded to 18.3% of total sales from 15.5% 0.10 0.30
4
Providing the highest standard of quality products 0.10 0.40
3
Continued to incrementally launch key products in new market 0.05 0.15
4
Emphasis on the Health & Safety of workers 0.05 0.20
4
Strong distribution center 0.10 0.40
2
Effective and efficient Research and MIS software used 0.05 0.10
3
Highly motivated employees 0.10 0.30
3
Strong and trained marketing/sales team 0.10 0.30
4
Increased focus on employee development and succession planning 0.10 0.40
Weaknesses
3
Failed to gain FDA approval of Patanol in 2009 0.04 0.12
2
Sales people of Pakistan lacks skills of smooth communication 0.05 0.10
Lack of internal control and declining sales trend over last two years in 1
Pakistan 0.06 0.06
3
TOTAL
1.00 .23
Strong Industry
Rating Scale
4 = Major Strength
3 = Minor Strength
2 = Minor Weakness
1 = Major Weakness
Interpretation
<2 = Weak Industry Presence
>2 - 3 = Average Industry
Weight
Rati
Key External Factors Weight ed
ng
Score
Opportunities
High market growth of 12% per annum 0.15
4
0.60
Highly competitive market comprises of both MNCs and 3
national corporations 0.15 0.45
Under-developed Healthcare industry in Pakistan with a 3
weak health system 0.15 0.45
Growth trend of private sector health centers and hospitals in 3
the country 0.10 0.30
Internet- providing more advanced facilities for advertising
4
of products. 0.20 0.80
Threats
Strict government control over pricing 0.05
3
0.15
No product patent protection in Pakistan 0.10
3
0.30
Generic products at cheaper prices 0.10
2
0.20
RATING SCALE
4 = Major Strength
3 = Minor Strength
2 = Minor Weakness
1 = Major Weakness
INTERPRETATION :
CPM identifies the Firms major competitors and its particular strength and weaknesses in
relation a sample firm’s strategic position. The two most important factors to being
successful in the industry are “R & D” and “Brand recognition” as indicated by weights
0.20. Novartis is on 2nd position and 1st on is Alcon and 3rd position is of Rimigton in
CPM.
E
Strategic Management Project Report on Alcon Laboratories, Inc.
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e
IE MATRIX
r
Segment EFE IFE
3.25 3.23
$
5
. The IFE total weighted score
4
High II III
I
3.0 to 3.99 Grow and
Build
Medium V
3 The EFE
IV Hold and VI
. maintain
Total
3 2.0 to 2.99
Weighted
4
Score
1.0 to 1.99
3
.
3
2 INTERPRETATION:
As you can see above in the IE matrix the horizontal and vertical line meets in one OF THE 9 TH
quadrant in the IE MATRIX. In our case the 2 lines are meeting in first quadrant. We should follow a
strategy depending on in which quadrant the Alcon lies in which these two lines intersect and it should
be grow and build. The strategies that are appropriate for growth and build is (intensive market
penetration, product development, and market development) and integrative (backward integration,
horizontal integration and forward integration).
F
r
e
i Strategic Management Project Report on Alcon Laboratories, Inc.
g
h
t
$
1
.41 |Page
1
Quadrant II Quadrant I
ALCON
LAB INC.
Market Penetration
Market Development
Product Development
Horizontal Integration
Backward Integration
Forward Integration
Related Diversification
3
WEAK
. COMPETITIVE STRONG
2
POSITION COMPETITIVE
0
POSITION
3
. SLOW MARKET GROWTH
8
0
INTERPRETATION
In our case the Alcon is lying in 1st quadrant in GSM because of strong competitive
position and rapid market growth which shows that Alcon is maintain the excellent
strategic position. We are confining our self to the current market or product and we are
concentrating on how to penetrate these market and product. We are ready to take risk
aggressively when necessary.
Weaknesses
2 2 4 0.16
Failed to gain FDA approval of Patanol in 2009 0.04 0.08 0.08
Sales people of Pakistan lacks skills of smooth
3 2 - -
communication 0.05 0.15 0.10
Lack of internal control and declining sales trend
- - - -
over last two years in Pakistan 0.06 - -
1.0
TOTAL WEIGHT
0
Threats
INTERPRETATION
The highest attractive score is of “Market Penetration” and Product development” so
according to QSPM institutive judgment the Alcon Lab Inc. will go for Highest score
Strategies these are Market Penetration and Product development.
ALTERNATIVE STRATEGIES
The above situation and analysis reveals that Alcon Lab Inc. has some major competitive
edge to be successful in the market, including strongest R&D and high production
capabilities. Moreover, the industry analysis shows that the market has a fairly growing
trend and investments, in this respect, are appreciable.
The major weakness, appearing over the last few years, is the lack on internal control and
monitoring, lack of sales skills of sales team causing a decline in sales and profitability.
The company has paid serious attention to this issue and has made internal structural
changes. It is, therefore, anticipated that the issues of internal controls would be improved
by the new structure and the company would be able to sustain its position.
Despite of the decline of overall sales and average launching of new products, the
company is successful in maintaining its pharmaceutical market leadership of about 15
products, and also sustaining Leadership in Ophthalmic industry which is definitely an
achievement. This shows the potential of company’s brands.
Keeping in view the all above factors, the company should adopt “Intensive Strategies”
as intensive efforts are required to maintain the competitive position.
As Alcon Lab Inc. is having a wide range of products in different therapeutic groups,
each having a different market, it is not possible to choose a single strategy for all
products.
The major objectives of the company are to gain market share through increasing sales
and introducing new products by utilizing its strong R&D capabilities. Keeping in view
all the above analysis, following two strategies are suggested for implementation:
1. Market Penetration:
This strategy should be adopted for the existing successful products to increase market
share and sales. It will help in achieving long-term objectives of the company by
increasing annual growth rate and market share. Also, it is very important to maintain the
market leadership of the leading products.
This strategy will also help the company in improving its profitability and financial
situation, which has been reined over last two years.
2. Product Development:
Alcon Lab Inc. has a strong R&D function and as there is huge growth rate in the
research product business, the company has planned to introduce new research products.
Moreover, research of a large number of new compounds will make the company capable
of meeting the future needs of the industry through launching new products as per the
customers’ needs.
This is a major competitive edge of Alcon Lab Inc. on its major competitors as they do
not have such a developed R&D function and the company should maintain this
competitive edge in future. Besides introducing new products, the company should
emphasize on the marketing and aggressive sales techniques in order to regain the
successful launching capabilities.
Moreover, the concentration on high quality and customer service should remain there.
This strategy would be supported by the company’s production facilities and would
definitely help in attaining long-terms objectives.
CONCLUSION
Alcon Lab Inc. is the world's leading eye care company. Fortune magazine has named
Alcon "One of the 100 Best Companies to Work For".
Alcon is facing the difficulties to get more and more business in Pakistan due to increase
number of local and national pharama companies and Alcon can get it improved by smart
marketing efforts and explore new products to do the business in this marketplace.
Alcon is the largest manufacturer of contact lens care products in the world and is widely
known for its artificial tears for dry eye therapy and eye vitamins to help protect eye
health Alcon should concentrate upon consumer vision care business. This is the sort of
industry in which locally many Companies involved, because it is most growing industry
which is 22% growth per year.
Though Alcon has been in staid catastrophe due to decline of sales and marginal
profitability for the 2009 as compare to 2008 in Pakistan Region because of lack of
internal control and management, the company can regain its position by emphasizing on
its core competitive edge and improving its internal controls.
REFERENCES
Websites
www.alcon.com
www.alconlabs.com
www.pataday.com
www.infinitivision.com
www.acrysofrestor.com
www.acrysoftoriccalculator.com
www.bssplus.com
www.alconretina.com
www.opti-free.com.
www.systane.com.
www.icapsvitamins.com
www.piribo.com
www.ibisworld.com