Intro To International Business
Professor Berry
Teva Thought Paper
Sunday, March 1, 2015
Israel played a major role in the development of Teva Pharmaceutical Industries. Teva was founded in the early 1900s and continued to rise to become one of the leading companies in the Pharmaceuticals industry. When analyzing porter’s diamond it was clear to me how Israel helped this company develop into what it is today. First off, the pharmaceutical industry birthplace was Germany. This being said Teva benefited highly from the trained scientists that were made refugees by the Nazis. This helped the company gain their base knowledge and expertise in the field. This plays in the factor conditions of Porters diamond. Education was very high in the research field of Teva. Not only did they have the refugee scientists but they gained much knowledge from the Weismann Institute/ Hebrew University of Jerusalem. This allowed Teva to develop their drugs at a high level of expertise and to bring them to the point of leading that region in drug research. There were also high levels of natural resources in this area. There were a few small pharmaceutical companies in the region, but none at the level that Teva had developed themselves to be. This created a low level of intensity in Israel, but a high level of competition for the rest of the world. The U.S. is one of Teva’s main clients/nations that it supports, but there are many pharmaceutical companies that do the same thing. I believe that the low level of competition throughout Israel and surrounding areas allowed them to focus on the U.S and other operations. The demand for drugs is extremely high. This created a very large market for Teva to work with. During the 1960s and 70s, Teva merged with a number of Israeli companies, becoming the largest producer in Israel and started to expand internationally in the 80s. The ability to take over the Israeli market is what I believe created such a