Abbott Laboratories and Baxter Corporation

This discusses the Structure-Conduct-Performance (SCP) of two multinational pharmaceutical companies, Abbott Laboratories and Baxter Corporation, in three markets with radical different health care systems, the U.S., Canadian, and Brazilian markets.

This paper evaluates a capitalistic market (the U.S.), a socialist/capitalistic market (Canada), and a developing market (Brazil), which can be broadly classified based on political, social, and cultural issues, to conceptually and practically understand the markets and the competition. The author points out that the generic pharmaceutical industry is flourishing in Canada; it accounts for approximately 15% of the sales of drugs in the country. The paper relates that, in Brazil, the major pharmaceutical industries are leveraging strongly on the government to change its laws and regulations in order to support better sales and distribution of the drug. Charts.

Table of Contents
Background of the Study
Statement of the Problem
Purpose of the Study
Objectives of the Study
Limitations of Study
Definition of Terms
Literature Survey
Analysis of Factors Affecting the Pharmaceutical Company
Mergers, Acquisitions and Diversification in the Pharmaceutical Industry
History of Abbott Laboratories
The SWOT Analysis for Abbott Laboratories
Strengths of Abbott Laboratories
Weaknesses of Abbott Laboratories
Opportunity for Abbott Laboratories
Threats faced by Abbott Laboratories
History of Baxter Corporation
SWOT Analysis of Baxter Inc.
Strengths of Baxter
Weaknesses of Baxter
Opportunities Ahead for Baxter Inc.
Threats Facing Baxter
The U.S. Pharmaceutical and Healthcare Market
The Canadian Pharmaceutical and Healthcare Market
The Brazilian Pharmaceutical and Healthcare Market
Porter’s Five-Force Framework for Analyzing the Pharmaceutical and Healthcare Industry
Internal Rivalry in the Global and U.S. Pharmaceutical/Healthcare Industry
Barriers to Entry
Substitutes and Complements
Buyer Power in the Different Markets of the U.S., Canada and Brazil
Bargaining Power of Suppliers
Marketing Theories
The Structure-Conduct-Performance Model for the Pharmaceutical Industry
Strategy and Nature of the Company?s Business Level Strategy
External Factors Affecting the Pharmaceutical Industry
P.E.S.T.L.E. Analysis of the Pharmaceutical Industry in all Markets
Political Analysis
Economic Analysis
Social Analysis
Technology Analysis
Legal Environment
Environmental Analysis
Social science, economic, corporate and business strategy, public and government policies all are considered to play a significant role in the success or failure of an organization at any location around the world. In the modern marketplace, no fixed or definitive strategy can be assumed to be most effective. What may be appropriate for one company in the same industry may not exactly work for another company. Contemporary management theories place great emphasis on these variables; consequently, marketing strategies also use many of these theories to understand and evaluate the market for the product and services of the organization.