Teva Pharmaceuticals

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After analyzing the different internal resources and capabilities at Teva, there are several resources which effectively give them a sustained competitive advantage, and distinctly set them apart from the competition. Going forward, it is critical for Teva to continue some business practices that have led them to be an industry leader in the pharmaceutical realm. One example of a resource that they have effectively exploited is their acquisition strategy. Their proactive approach to acquisitions has proven to be extremely prosperous in a number of ways. Teva’s arguably most important acquisition was Ivax, which provided them with a great amount of value and competitive advantage. Ivax gave them a large global presence, which they had previously been lacking. This strengthened and broadened their geographical reach, especially in the generics sector. Additionally, Ivax had a very strong system for the “first-to-file” pipeline, which gave an even greater edge for the sale of generic drugs. As Teva’s pipeline was getting weaker, Ivax helped reestablish and empower the pipeline by also including two of the biggest selling generics at the time, which were Zocor and Zoloft. By acquiring Ivax, Teva was also able to establish a costly to imitate economies of scope which has proven to be a critical vehicle in obtaining a sustained competitive advantage. Another successful acquisition was Sicor, which provided even further benefits in terms of expanding their scope and overall competitive position. Sicor added a host of new products, customers, and technologies which aided Teva in diversifying themselves, especially concerning biosimilars. Aside from acquisitions, Teva also operated a highly efficient and global supply chain, which dramatically increased their economies of scale. Their dedication to low costs paired with an essentially unmatched scale advantage through supply chain management has proven to distinctly separate them from their competitors. The supply chain...
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