Dr Reddy's Laboratories: Growing Pains
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Moreover the ban imposed by the US Food and Drug Administration (FDA) on products made at DRL's Mexico unit for violation of manufacturing practices seriously dented the company's image as a quality drug maker. The ban also affected the company's revenues from the US market. A string of accidents which broke out across at DRL's Indian manufacturing facilities brought its safety practices under question. In a bid to crack the generics market in the US, the company lost sight of the domestic market and could not come up with new products in the Indian markets unlike its competitors. As a result, the company lost its coveted position in the domestic market. All these problems led to a decline in the stock price of the company. It was also reported that while founder Anji Reddy wanted to make DRL an innovative research-driven company focused on producing low-cost medicines, the younger generation led by son-in-law GV Prasad (CEO) and son Satish Reddy (COO) sought to make DRL a generics-driven global giant. In light of the problems, the challenge before DRL's management was how to stem the rot and orchestrate a turnaround.
» Analyze the strategies adopted by DRL to become a global company .
Internationalization, Corporate-level and International strategy, Directions for strategy development, Ansoff's matrix, Strategy Implementation, Turnaround strategy, Pharmaceutical, Global pharmaceutical industry, Indian Pharmaceutical industry, Dr Reddy's Laboratories, Globalization, FDA, Patents, Generics, R&D, Betapharm, Anji Reddy
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