October 21, 2012
THE SUCCESS OF ALLERGAN 2
Allergan has been around for 60 years. Allergan's founder, pharmacist Gavin S. Herbert, in 1948, he became the owner of a pharmacy in Los Angeles. It was a profitable company. Herbert’s friend, Stanley Bly asked him to go into business with him. He had an idea for an anti-allergy nose drop containing the antihistamine neoantergan. Since Gavin was, a successful pharmacist and Stanley had in site on a great discovery this could be something great. They set up a small laboratory on the balcony of Mr. Herbert's drugstore in Los Angeles to make the solution, which they named ALLERGAN® Nasal Drops. Allergan has become a company not just for eyes but they also have patents for conditions, such as cervical, medical dermatology (Allergan Inc., 2012)
THE SUCCESS OF ALLERGAN 3
Assess how globalization and technology changes have impacted the corporation you researched. With approximately 10,500 employees and a presence in more than 100 countries, we work hard to make sure our products reach the people who need and want them worldwide. (Allergan 2012). Allergan has branched out into other treatments besides the eye care of dry eye, glaucoma, and other eye conditions. Now they treat cervical dystonia, which is breast asester blepharospasm, strabismus, upper limp spasticity, and facials. They also specialize in medical dermatology such as acne, psoriasis, severe primary axillary, hyperhidrosis, inadequately managed with urocogics and over active bladder and urinary incontinence. With Allergan having, a diverse approached helped how globalization and technology has impacted the company, based on their patent products that helps people live better and feel better. When needs are not meet they make sure they go beyond what is expected of them to keep up with the technology of the different products. Allergan has a partnership with the medical community. Having these partnerships helps the company come up with their own thoughts and insight of customer satisfaction by improving their product based their customer’s outcome. They provide customers with the tools and education needed to keep them updated on the latest information so the customer can informed their doctor of any decisions they make. (Allergan 2012) SUCCESS OF ALLERGON 4
Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns. According to Strategic Management 10th edition, 2013 above average returns were earned when firms are able to effectively study the external environment as the foundation of identifying an attractive industry. Hebert’s friend Stanley Bly sought to implement a strategy to reduce competitive rivalry and form a joint venture. Joint ventures increase profitability in this company. As stated below based on the 2012 annual report sales is expected to increase in the future and helps the company earn an above average return. For the full year of 2012, Allergan expects total product net sales between $5,650 million and $5,800 million. Total specialty pharmaceuticals net sales between $4,740 million and $4,850 million. Total medical devices net sales between $910 million and $950 million. ALPHAGAN® franchise product net sales between $420 million and $440 million. LUMIGAN® franchise product net sales between $620 million and $640 million. Restasis product net sales were between $750 million and $780 million. Botox product net sales were between $1,760 million and $1,800 million. Latisse product net sale...