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THE UPJOHN COMPANY: A STRATEGIC ANALYSIS

The company's major product groups are (1) nonsteroidial anti-inflammatory compounds, (2) antibiotics, (3) anti-diabetes agents, and (4) central nervous system agents (Rho 1278). In terms of total company sales, central nervous system agents are the most substantial, followed by the anti-inflammatory compounds, the anti-diabetes agents, and the antibiotics in that order. A total of 51 percent of the firm's total sales are accounted for by the four product groups.

The company's leading brand names in the four primary product areas include Lincocin, Cleocin, Micronase, Ansaid, Mortrin, Halcion, and Xanax (Rho 1278). Other well-known and high selling company brands outside of the four primary product groups include Rogaine (hair restoration), Cortaid (pain reliever), and Kaopectate (analgesic). Not all brands are sold in all markets in which Upjohn participates. The firm's domestic and foreign sales are split 60 percent and 40 percent, respectively. Profit contributions for domestic and foreign activity are proportionate to sales activity.

Upjohn's current management continues the company's traditional emphases on product quality, research, and a pursuit of both prescription and non-prescription medications ("Upjohn Reorganizes" B5). In the area of non-essential drug products, the firm was the first to receive Food and Drug Administration (FDA) approval for a baldness treating drug. This activity on the part of the firm is representative of the balance the company's management seeks to maintain in its product strategies. The company recently failed, however, to persuade the Food and Drug Administration (FDA) to authorize over-the-counter sales of Rogaine ("Setbacks Galore" 6).

One of the major problems facing Upjohn, along with other major pharmaceutical manufacturers in the United States, is an inability to capitalize on proprietary research to the extent that Japanese pharmaceutical companies are succ...

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THE UPJOHN COMPANY: A STRATEGIC ANALYSIS. (1969, December 31). In LotsofEssays.com. Retrieved 13:05, May 05, 2024, from https://www.lotsofessays.com/viewpaper/1687037.html