Smith Case

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Brian Quinn
Smith & Nephew—Innovex

The Smith & Nephew S.A. (S&N) was the Spanish subsidiary of the Smith and Nephew group that is based mainly in the United Kingdom and United States. The company was founded in Spain around 1963. S&N sold in Spain healthcare products manufactured by the Smith & Nephew group in various countries. The company had two divisions medical and surgical. Between these two divisions they sold all of the group product ranges and families. The subsidiary in was trying to expanded their sales in the country to more hospitals and private care centers in the country. The company enters into a trial contract with Innovex in Spain to try to help the company expand its sales from just hospitals. Innovex is a company that contract teams of medical sales representatives to promote the products of the company. S&N under this contract would have 10 sales representatives and an area manger to serve Galicia, Asturias, Andalusia and Valencia. The sales team was try to promote the company moist wound healing product to primary care centers in the area they were assigned. The company went through with the trial contract with Innovex and the results of trial contract had some good things and some bad things. They saw increases in market share of their products in the regions of the contract. Some of the regions had more increase then others so there was concern of why in didn’t increase as much in the other regions.

As the contract came to a close the company had a decision. The decision had three variables the first one being to us salaried sales representatives or to use contract sales representatives employed by Innovex, the level of geographical coverage and timing. The company could you combine in different ways to generate several different possible to move forward. Some of the possible strategies would be to terminate the contract with Innovex and leave the areas as they were before the contract....
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