The growth strategies of a global pharmaceutical company: a case study of Aspen Pharmacare Holdings Limited
-
DOIhttp://dx.doi.org/10.21511/ppm.15(1-1).2017.12
-
Article InfoVolume 15 2017, Issue #1 (cont.), pp. 248-259
- Cited by
- 2870 Views
-
3148 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
Given the rapid and sustained growth of Aspen over the past decade, the main aim of this study is to identify and analyze the growth strategies, adopted by Aspen over the period from 2004 to 2014. The research method used was a descriptive study through a single case study of Aspen by analyzing secondary data in the form of publicly available company reports and presentations, as well as financial results, issued between 2004 and 2014. The study finds that, guided by strategic and visionary leadership, Aspen adopted a number of growth strategies including (i) organic growth, as a key factor in creating incremental value for Aspen and its stakeholders, (ii) inorganic growth, in the form of carefully planned and well executed acquisitions, aligned to the Group strategy, (iii) extending territorial coverage through global expansion, particularly into emerging pharmaceutical countries, and (iv) ongoing investment in production capabilities as a means of achieving a strategic advantage. Despite the challenges of intense competition, restrictive legislation, pressure on medicine prices, currency volatility and market specific risks, Aspen has delivered double-digit earnings growth to its shareholders for 16 consecutive years.
- Keywords
-
JEL Classification (Paper profile tab)G20, G21, G32, I22, M10
-
References34
-
Tables2
-
Figures2
-
- Fig. 1. Aspen growth themes
- Fig. 2. Aspen “challenge themes”
-
- Table 1. Aspen milestones up to 2014
- Table 2. Aspen growth in numbers 2004–2014
-
- Aspen (2014). Aspen Pharmacare Holdings Limited Integrated Report 2014.
- Aspen (2012). Aspen Pharmacare Holdings Limited Annual Report 2012.
- Aspen (2010). Aspen Pharmacare Holdings Limited Annual Report 2010.
- Aspen (2009). Aspen Pharmacare Holdings Limited Annual Report 2009.
- Aspen (2007). Aspen Pharmacare Holdings Limited Annual Report 2007.
- Buss, D. (2014). ‘Chief Growth Officer’ Title Catches On as a Way to Battle Growth Challenges, Chief Executive, 15 August.
- Cairns, P. (2011). The Investment Case – Aspen Pharmacare Holdings Ltd, Moneyweb, 12 January.
- Dalton, D.R. and Dalton, C.M. (2006). Corporate growth: Our advice for directors is to buy ‘‘organic’’, Journal of Business Strategy, 27 (2), 5-7.
- Deloitte. (2014) 2015 Global life sciences outlook: Adapting in an era of transformation [Online].
- Duckler, M. (2015). Driving Organic Growth [Online].
- Edinger, S. (2013). How Strategic Are You? Forbes, 23 October [Online].
- Grant, R.M. (2010) Contemporary strategy analysis, 7th ed. United Kingdom: John Wiley & Sons Ltd.
- Hindle, T. (2008). The Economist – Guide to Management Ideas and Gurus. London: Profile Books Ltd.
- Hough, J., Thompson Jr, A.A., Strickland III, A.J. and Gamble, J.E. (2011) Crafting and Executing Strategy, 2nd ed. Berkshire: McGraw-Hill Education.
- IMS Institute for Healthcare Informatics (2014). Global Outlook for Medicines Through 2018, [Online].
- Investopedia, LLC (2015) Annual Report [Online].
- KPMG (2015). Pharmaceutical and Life Sciences Deals Insights Quarterly Q4 2014 [Online].
- Kubo, K. (2011). Explaining Vertical Integration in the Generic Pharmaceutical Industry, Discussion Paper 11-02, January, Indian Statistical Institute, Delhi Planning Unit [Online].
- Kuntz, B.G. (2014). Organic vs. Inorganic: Which Way To Grow? Forbes, 14 January [Online].
- Matusitz, J. (2010). Disneyland Paris: a case analysis demonstrating how glocalization works, Journal of Strategic Marketing, 18 (3), 223-237.
- McKinsey & Company (2012) Unlocking pharma growth: Navigating the intricacies of emerging markets [Online].
- Megget, K. (2015). Merger fever sweeps pharma, Chemistry World, 10 September [Online].
- Mognetti, J. (2002). Organic Growth: Cost-Effective Business Expansion from Within. England: John Wiley & Sons Ltd.
- Ovans, A. (2015). What Is Strategy, Again? Harvard Business Review, 12 May [Online].
- Porter, M. E. (1996). What is strategy? Harvard Business Review, November – December, 61 - 78.
- PwC. (2012). From vision to decision: Pharma 2020 [Online].
- PwC. (2013). Pharma emerging markets 2.0: How emerging markets are driving the transformation of the pharmaceutical industry [Online].
- Rich, J.T. (1999). The Growth Imperative, Journal of Business Strategy, 20(2), pp. 27 - 31.
- Roland, B. (2013). Global pharmaceutical industry is in a strategic crisis – Business models must be adjusted, 6 January [Online].
- Strategic Direction. (2006). Making the most of growth opportunities: Strategies for success, Strategic Direction, 22(8), 26-29.
- Tshabalala, T. (2014). How a Mouse Ate an Elephant, Forbes Africa, May 2014, 12 - 18.
- Ward, A. (2015) No end in sight to wave of pharma dealmaking, Financial Times, 26 April [Online].
- Wieczner, J. (2015). The real reasons for the pharma merger boom, Fortune, 28 July [Online].
- Yin, R.K. (2012) Applications of Case Study Research, 3rd ed. Thousand Oaks, California: Sage Publications, Inc.