Teva Pharmaceutical Industries, Ltd

Tarun   Khanna; Krishna G. Palepu; Claudine Deborah Madras

Case | HBS Case Collection | September 2006 (Revised March 2010)

Teva Pharmaceutical Industries, Ltd

by Tarun Khanna, Krishna G. Palepu and Claudine Deborah Madras

Abstract

How do companies develop a strategy that is both low-cost and differentiated without becoming squeezed in the middle? Describes how Teva, Israel's first and largest multinational, achieved its globally dominant position in generic pharmaceuticals, an industry that has undergone significant change over the last 20 years. Examines its strategies to defend itself against both low-cost competitors from India and other emerging markets as well as Big Pharma companies, which are adopting increasingly aggressive tactics in genetics.

Keywords: Multinational Firms and Management; Emerging Markets; Rank and Position; Competitive Strategy; Pharmaceutical Industry; India; Israel;

Format: Print

27 pages

Educators Purchase

Citation:

Khanna, Tarun, Krishna G. Palepu, and Claudine Deborah Madras. "Teva Pharmaceutical Industries, Ltd." Harvard Business School Case 707-441, September 2006. (Revised March 2010.)

Entrepreneurs in developing countries who assume they will have the same legal, governmental, and institutional protections as their counterparts in the West will fail. To succeed, they need to build trust within the existing structures—and this book shows how it's done.

Article | Harvard Business Review | July–August 2018

When Technology Gets Ahead of Society

Tarun Khanna

New technologies can be unsettling for industry incumbents, regulators, and consumers, because norms and institutions for dealing with them don’t yet exist. Interestingly, businesspeople in emerging economies face similar challenges: The rules are unclear and infrastructure is lacking. In this article, the author suggests that tech pioneers would do well to heed a lesson he’s gleaned from his research in the developing world: For long-term success, companies must invest in the surrounding ecosystem.
The author presents examples of entrepreneurs who have done just that in China, Bangladesh, Africa, and Chile, benefiting the public as well as their own enterprises. He then describes how an Indian health care organization is tackling institutional voids as it expands into medical tourism in the Cayman Islands. An in-depth look at the nascent drone industry follows, with profiles of companies that are helping create the conditions for the industry’s growth by amassing knowledge about best practices, influencing the development of regulations, exploring new uses for drones, developing a professional workforce, and so forth.
The argument is that when firms launching innovative products or services look beyond their self-interest and work to collectively build the institutional infrastructure, they—and society as a whole—are more likely to prosper.

Keywords: Technological Innovation; Society; Situation or Environment; Infrastructure; Entrepreneurship; Performance Effectiveness; Cooperation;

Citation:

Khanna, Tarun. "When Technology Gets Ahead of Society." Harvard Business Review 96, no. 4 (July–August 2018): 86–95. View Details

Cite View Details Find at Harvard Register to Read

Tesla’s board of directors proposed an unusual compensation plan for the company’s CEO Elon Musk. The plan payouts were entirely contingent on achieving very ambitious market value, sales, and EBIT targets over the next ten years. If all the targets were achieved, Tesla would be one of the most valuable companies in the world, and Musk would receive the highest compensation of any CEO in US corporate history. If the targets were not achieved, Musk would receive nothing. Proxy advisors (ISS and Glass Lewis) expressed serious reservations about the plan and urged shareholders to vote against it. Should shareholders approve or reject the plan?

Faculty & Research

Teva Pharmaceutical Industries, Ltd

Abstract

Citation:

About the Authors

More from these Authors