Current Strategic Profile
More than 100 years ago Teva Pharmaceuticals opened their doors as a wholesale drug distributor in Jerusalem. Today they have become the world’s leading producer of generic pharmaceuticals. Revenue has grown from $91 million in 1985 to $8.5 billion in 2006. This growth has not been easy and derives from key strategic decisions made along the way in order to amass these huge dollars amounts. Teva’s mission is to play a leading role in the transformation of the healthcare system through the development, manufacture and marketing of generic pharmaceuticals. Teva’s organizational structure is a symbol of their fundamental business strategy, highlighting their global strength and pharmaceutical diversity. This allows them to continue to expand their core generic business across all geographies and leverage their global reach and scientific strength to develop new innovative products and technologies. Teva has picked an industry in which there will always be a need, medicine. However, it is their approach to prescription medicine that will decide the future of Teva.
In the start up of a pharmaceutical company an important strategic decision must be made between becoming an innovative and a generic medicine company. Each has its advantages and disadvantages, however Teva works as a generic pharmaceutical company. As a generic company they have been incredible successful in setting goals and executing them in a successful fashion. They have successfully expanded abroad, developed competitive advantages, created innovative business, successfully executed mergers and acquisitions, and maintained a rigorously low-cost culture and achieved greater scale benefits in its supply chain.
Strategic Issues The first strategic issue that faces the firm lies at the very root of pharmaceuticals, the decision to be either an innovative or generic pharmaceutical company. Thus