The paper "Various Strategies for Shefa Herbal Company in the UAE" is a good example of a business case study. Majority of organizations in the UAE’ s drug research and development industry are facing challenges. Most of these companies are scheduled to go off-patent in the coming years which means that they are at risk of closure due to patent-related causes which may lead to bankruptcy as a result of low revenues. On the other hand, there is no clear and effective pipeline in the UAE which could replace these organizations or even ensure that these organizations get back the money in form of revenue that they are at risk of losing.
Therefore, ‘ blockbuster’ model is taking shape in this industry where big pharmaceutical companies are taking over the smaller drug research and development companies leaving them distressed in their efforts to replace their lost earnings. These small drug research and development companies, therefore, are faced with the task of deciding the most feasible strategy that will guarantee their survival in the industry and also ensure that they retain their revenue flow. STRАTЕGIЕS FОR НЕRBАL СОMРАNY IN UАЕ Introduction and summary Evidently shefa’ a Company faces a number of problems ranging from financial constraints, employee un-satisfaction and needs to meet its philanthropic pledge to the public.
In this case, the best strategy to adopt to ensure that these problems are solved is that on equity investment through signing up with the investors. Shefa’ a Company is evidently faced with increased expenditures. The company also faces a market trend challenge on drug preferences shifting towards specialities, with the newly developed drug having lower commercial potential. the company also faces an even greater problem of ensuring constant profit streams to guarantee its sustainability.
Thus, this company is now forced to reconsider its strategy while researching and developing this new drug and taking it to the market. On the other hand, the company will also need to maintain an innovated drug’ s patents as evidently seen in the case study which could be the main way in which the drug Research Company could guarantee profit streams as well as ensure that it has enough funds going forward. This paper, therefore, seeks to review the best strategy to be adopted by Shefa'a company on the research and development of its new innovative drug "herball" while aligning these strategies with UAE’ s 2021 and 2030strategy. Strategy selection The strategy is essential as it helps in attaining a long-term aim thus, the best strategy that Shefa'a Company could adopt in regards to ensuring the financial stability is adopting the equity investment strategy by signing up with the investors.
In this case, this will ensure that the company will meet its philanthropic promise and also ease its financial pressure which it had began to feel.
Moreover, adopting this strategy will ensure that it has guaranteed incentives to continue with future research (Zhang, Gao, Wheeler & Kwon, 2016). Literature review A lot of concerns are raised by Research and Development companies in their effort to raise revenue after the launch of a new drug. As evidently seen in the case study the loss of patent by these Research and Development companies may lead to them losing their exclusivity leading to severe loses in profits and sales to the incumbent companies. The threat of substitute goods is a major threat to the most company and thus a thorough industry analysis is essential in order for a company to succeed in the market.
Loss of patent, in this case, leads to infiltration by generic manufacturers in the drug market with drugs that are equivalent to those of the innovator’ s which they sell at ridiculously low prices.
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