Question:
Introduce a Medicine Invented by the Herbal Pharmaceutical Company in Oman.
Herbal pharmaceutical company has developed an invention under which herbal medicines are manufactured. These medicines are quite effective in the prevention of cancer and while reviewing the markets for introducing this medicine, Omani market was selected. As per the market research analysis, it was observed that cancer patients are increasing rapidly in Omani market and there are no such curing medicines and technologies which could cure the affected people. Medicine introduced by the organization is effective enough to cure cancer and its related diseases. It is made up of various herbs which do not have any side effects on the human body as well as organization have decided to provide this medicine at very reasonable rates. This will enhance the demand for the medicines as well as it will also help the organization to set up its effective place in the target market. The basic requirement which has been considered for introducing the new product or business in the new target market, business plan is must and under this report, business plan will be developed for launching their business in an effective and adequate manner. Business’ future is dependent upon the business plan; hence, all the factors will be studied in an appropriate manner before developing and implementing the business plan for herbal pharmaceuticals.
Selected business under this report is linked with the herbal pharmaceuticals industry and the company is engaged in manufacturing life-saving drugs especially to cure cancer and other severe diseases. Herbal medicines do not have any type of side effect and it is much effective in comparison with the allopathic medicines.( Farahmand, 2011). Organization executed the research for curing the cancer patients and in this research; organization got the success in producing the herbal medicine for curing the cancer disease in an effective manner. This is the biggest discovery for this organization and in order to enjoy the success with the valuable discovery, the organization decided to target the Omani market for introducing their business and the new invention. With regards to the invention, Herbal pharmaceutical Company has expected the sales approximately $ 4 billion with a profit margin of 40%. This will help them to develop a unique image in the global pharmaceutical industry because till the time, only allopathic medicine has been introduced for preventing cancer and that too is not much effective in comparison with the outcomes originated from the herbal medicines at the time of testing at laboratory (Abdulaziz, 2016)
It is an aspect through which the performance of the product and the service could be enhanced in an effective manner. Value propositions are the unique and attractive features added to the newly launched or about to be launched product in the market. These are quite effective in order to attain the competitive advantage in the target market (Renton, et. al., 2015). In terms of Herbal pharmaceutical company, discovery of herbal medicine for curing cancer and other severe diseases will act as the value propositions for the organization. It will help the company to attain adequate and effective competitive advantage in the target market in the pharmaceutical industry as well as it will also help them to develop an effective and positive image in the consumer’s mind-sets (Ameinfo, 2017).
For pharmaceutical products, target market segments are not classified on the basis of geographic, demographic, behavioral and psychographic variables. Herbal pharmaceutical company could spread their product’s awareness in the whole Omani market without segregating the market through segmentation variables. With this, market share and the customer base will also be enhanced and this will raise various growth and expansion opportunities in the target market. Herbal pharmaceutical company is engaged in manufacturing of life-saving drugs and now they have invented a drug for curing the cancer disease (Armstrong, et. al., 2015). In order to enhance their market share in the global pharmaceutical industry, organizational has decided to target the following segments of the market:
Herbal pharmaceutical company could also implement the further strategies such as positioning. With the help of this strategy, organization will be able to set up its effective position in the target market. Positioning strategy defines the process of setting up the brand value in the target market to attain competitive advantage and as Herbal pharmaceutical company has introduced unique value propositions in their life-saving drugs which will be proved as the most advantageous features for attaining competitive advantage and the expected goals and the objectives in order to set up its effective position in the global pharmaceutical industry (Baker, 2014).
Market Analysis
As per the recent business trends, it has been observed that every industry is inventing and introducing new products and services in order to enhance their profits and revenues. Herbal pharmaceutical company has discovered the formula to manufacture the herbal medicine for curing cancer and its related diseases in an effective manner. And with this idea, organization will be able to attain an effective position in the target market as well as adequate competitive advantage. While every industry is busy in making profits, Herbal pharmaceutical company which is a part of pharmaceutical industry is engaged in preparing the medicine to fight the most dangerous disease. It is a part of life-saving drug and with increasing population of the globe, the number of cancer patients are also increasing. Reviewing all these factors, Herbal pharmaceutical company decided to produce cancer-curing medicines made up of herbs and minerals which do not have any kind of side effect to the human body. With the help of this medicine, organization would be able to set up its important place in the global pharmaceutical industry as well as their market share and the customer base will also be enhanced (Global Industry Analysis, 2015).
In Middle East Countries, United Arab Emirates has been considered as the second largest economy in the Saudi Arabia engaged in making huge investments in the pharmaceutical industry. Government bodies have introduced exempted tax systems to support the pharmaceutical industry to invent life-saving drugs and other relevant medicines for curing the human body of various other severe diseases. With the support of government policies and regulations, Herbal pharmaceutical company becomes capable enough to discover the antidote for curing the cancer. With the rapid increase in the pharmaceutical industry of UAE, it is expected that growth of approximately $ 4 billion will be recorded till 2020 (Glowik & Smyczek, 2011).
Competitive Analysis
While reviewing the competitors in the UAE and in Omani market, it was observed that huge competition is present in the pharmaceutical industry. With regards to this, setting up an effective and valuable position for the Herbal pharmaceutical company will be a bit difficult task. In the pharmaceutical industry of Oman, certain components such as customer-centric, unique and creative innovations, etc. need to be adopted as the core functionalities for surviving in the competitive business environment. As the level of Herbal pharmaceutical company is quite high because they are involved in the production of life-saving drugs and other medicines. Apart from this, organization is also engaged in social services through which these drugs are distributed to the customers at very affordable and reasonable rates. With this strategy, Herbal pharmaceutical company will be able to set up its effective and unique position in the global market (Hill, Jones & Schilling, 2014).
Marketing strategies
Herbal pharmaceutical company could spread awareness with regards to their newly invented life-saving drug through various medical awareness campaigns. Apart from this, organization could also use the board hoardings, pamphlets, etc. to spread the awareness amongst their target audience in relevance with their life-saving drugs. Along with the medical campaigns and awareness programs, Herbal pharmaceutical company could also adopt the latest and trending marketing and promotional strategies to attain better and quick results (Joshi, 2009). Digital marketing, social media platforms, etc. are crucial elements of the trending marketing strategies. Traditional techniques of promotion such as print mediums advertisement techniques could also be used in order to attain the adequate goals and the objectives of the organization. Location of the business also plays crucial role in terms of enhancing the demand for the organizational products. Thus, Herbal pharmaceutical company needs to search for the most attractive and centralised location in Oman as this will help them to attain their expected goals and the objectives and along with this, opportunities for growth and expansion will also be raised for the organization (Chaffey, 2015).
Growth strategies
In terms of enhancing the market share of the organization in the target market with the view to attain their goals and the objectives, growth objectives such as market penetration, market expansion, product expansion, diversification, acquisition, etc. could be used. All these strategies are being used for enhancing the market share and the customer base in the target market. With these, organization becomes capable enough to attain its goals and the objectives of attaining competitive advantage and the adequate position in the target market (Lam & Harker, 2015). Market penetration is implemented for enhancing the market share of the company within the existing market with the same products and services. Market expansion is implemented while company is expanding its business in the new markets through introducing the new products or new business in the target market. Product expansion is the strategy under which the existing products and the services are altered and modified to enhance their effectiveness. With the help of this, organization becomes capable enough to set up their effective and adequate image in the competitive business environment of the target market (Clarke, et. al., 2015).
Amongst all these growth strategies, organization could implement the market expansion strategy in order to expand their business in the global market. With the help of this, organization would be able to meet with its objective of attaining its global objectives of attaining competitive advantage in the global pharmaceutical industry (Combs Jr & McClung, 2016).
|
Start-up costs |
Amount ($) |
|
Legal expenses Advertisement and promotion expenses Machinery expenses |
40000 100000 500000 |
|
Total Expenses |
640000 |
|
Start-up Assets |
Amount ($) |
|
Cash required Current assets Long-term assets |
1000000 500000 800000 |
|
Total Assets |
2300000 |
Financial resources for organization could be analysed and segregated in various terms. In terms of Herbal pharmaceutical company, their available resources are innovation made by them to save the lives of thousands of people across the globe (Lu & Liu, 2015). To distribute this medicine, company has decided to operate their initial operations from the Omani market with reviewing the health conditions of the cancer patients. Effective team and an effective team management process are required for maintaining the coordination amongst the employees for enhancing the chances for expansion of the business in the target market. Apart from this, effective human resources, finance, machineries to produce the medicines, talents and knowledgeable people, etc. are certain crucial resources which are required in order to accomplish the core objectives of the organization for spreading the life-saving drugs to large number of people across the globe (Cool & Schendel, 2010).
Financing is the term which is used to describe the financial requirements of the organization for accomplishing the activities of the organization in an adequate manner with the objective to accomplish their targets. Funds play crucial role in the accomplishment of the adequate outcomes from the execution of the functionalities of the organization. Thus, while performing the planning process, appropriate requirements need to be evaluated on the basis of organizational departments in terms of funds requirement, resources requirements, etc. (McKeever, 2016). Within the desired time period, organizational management needs to arrange all the required resources for attaining the desired goals and the objectives for the organization. As Herbal pharmaceutical company is engaged in producing life-saving drugs and as per their recent invention, they have successfully invented the medicine to reduce the effect of cancer as well as it has the capability to save the lives of cancer patients. Thus, management of the organization needs to analyse the requirement of the funds for each department of the organization and within the appropriate period time, those requirements should be fulfilled in order to attain the goals and the objectives with introducing the life-saving drugs in the target market (Dant, 2009).
Material risk is the term used to define the effect of the particular surgery or medicine o the human’s body. Generally, it has been observed that allopathic medicines have furious side effects to the human body and all those side effects are included in the material risk. This reduces the demand of the particular medicine and due to this; organization may face various issues such as decrease in the demand of their medicines, decline in the goodwill of the organization, etc. (Myerson, 2016).While in the scenario of Herbal pharmaceutical company, material risk factors are not involved because the life-saving drugs and their latest innovation of medicine which deals with the cancer disease effectively are made up of pure herbs and natural formulas. Due to this, they do not carry the burden of material risks (Dickinson & MacKay, 2014).
Following are certain strategies through which the effect of material and other types of risks could be reduced in an appropriate manner:
Conclusion
From the aforesaid information, it can be concluded that Herbal pharmaceutical company has invented the formula which is quite important for the society to deal with cancer and its related diseases. In order to analyse the effectiveness of their invention, market research was conducted and it was decided that the medicine will be distributed initially in the Omani markets. For further expansion, market demand and the outcomes will be evaluated with regards to the innovation made by the company. For expanding the business in the target market, various strategies and approaches were being used in order to attain the organizational goals and the objectives
References
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