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Case
| HBS Case Collection
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1995
(Revised from original 1994 version)
Astra/Merck Group
by
Frank V. Cespedes and Marie Bell
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Abstract
Astra/Merck (A/M), originally a joint venture of AB Astra and Merck & Co., is preparing to be an independent company in 1993. Since the company does not engage in basic research and development of drugs, it is essentially a distribution organization. Fundamental to A/M's strategy is a new approach to the marketing of prescription drugs. The case outlines this approach, developments in the pharmaceuticals industry, and issues raised by A/M's attempts to implement a new marketing process in an industry where promotion-oriented "detailing" has dominated distribution practices.
Keywords: Cost vs Benefits;
Marketing Strategy;
Distribution;
Performance Evaluation;
Research and Development;
Risk and Uncertainty;
Sales;
Competitive Strategy;
Pharmaceutical Industry;
Citation:
Cespedes, Frank V., and Marie Bell. "Astra/Merck Group." Harvard Business School Case 594-045, March 1995. (Revised from original March 1994 version.)