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Lundbeck South Korea
Transcript of Lundbeck South Korea
Lundbeck: a Brief History
Conflict: Implement or not the corporate strategy- to launch a switch-over campaign?
1. Jun's position
2. Rajar's position
3. Maintain the status quo
Lundbeck: an international CNS (central nervous system) pharmaceutical company.
Current product: anti-depressant medications.
New growth in Alzheimer’s disease medications.
Asian market represented almost 20% of the pharmaceutical industry in 2005
Lundbeck Korea had strong growth under the management of Jin-Ho Jun
Problems : conflicts between Jin-Ho Jun and Asif Rajar( the manager of Asia)
Example: disagreement on marketing strategies .
The best choice is to agree with Jun and to continue selling Cipram.
Continue with the dominant drug that is already well-known in South Korea (Cipram) until the brand is fully established before introducing the new product Lexapro.
1. Should Lundbeck introduce Lexapro to the South Korean market?
2. Needs to increase their general understanding of each region in their foreign markets (not much information on this in the case, but appears to be an issue).
3. Lack of R&D on the South Korean market.
Long Cycle Process:
Managing an International Growth Engine
Innovative and Proactive
Use "switch-over-campaign" strategy
Create a strong reputation in South Korea
Expand into North America in the near future
Long Cycle Process:
Focus on lauching products-Lexapro
Improvement in Research and Development
Growth Increase in Korea
Secure a large loan agreement from the IMF
1st Largest Asian pharmaceutical market-Japan 55%
2nd Largest-China 17.5%
3rd and 4th largest 8.3% and 8.1%
Rapid growth in Asia-11.3%
South Korea-hierarchical society
Discouragement towards mental illness
Celebrities and businessmen suicidal
Specialization- key products
Speed - small sized company
Integration- continue to be globalized
Results- high flexibility in future investment
*The alternatives were scored and ranked according to the order of importance, and the lowest score is considered the best alternative. (1-high importance; 2-medium importance; 3-lowest importance)
Although there is large potential
Dependent on specific products
Implementing universal practices doesn't work
Yet to make a substantial profit on the South Korean expansion of Lundbeck
South Korean government can implement business suppressing laws
Patent agreements may change as the market develops
liability and ethical practices may change
Unknown market, need for R&D
1. Relationship between Jung and Rajar.
2. Profitability of the South Korean division needs to increase.
3. The lack of understanding of Korean culture.
First goal: Continue to sell Cipram until Lundbeck can create a greater brand image in South Korea before introducing and promote Lexapro
Second goal: The conflicts between Asif Rajar (regional manager) and Jin-Ho Jun (country manager) need to be resolved
Third goal: Adopt new strategies. In the long run, the company will increase the revenue and profit and make the brand well-known in the global market