Country Analysis Report - South Korea

2217 WordsApr 9, 20069 Pages
Country Analysis Report In the fiscal period from year 2000 to 2004, Allergan Inc. has seen a continuous rise in sales and profits. In the year ended 2004, net income reached a high of $377 million and there is certainly no reason to believe that number won't continue to grow . Although most of our company's sales comes from our line of eye care pharmaceuticals, It is the BOTOX/neuromodulators line that sees the most promise in growth. With 80% of our BOTOX products being used for cosmetic purposes, a great market potential is seen in South Korea where the demand for skincare and cosmetic products is soaring. With sales capabilities in over 100 countries, direct sales offices have only been established in a little over 20…show more content…
For Allergan, the current legal environment in Korea is favorable for marketing many of its products. With pricing regulations, Allergan won't have to worry about tough price competition from domestic companies. Although intellectual property laws are more complex in Korea, there is little worry for the BOTOX line which currently doesn't even have a patent in the U.S. The process of making BOTOX is complicated and only known to Allergan. Even without a patent, there is little chance of other companies cultivating their own process of making similar products. Infrastructure Analysis Human Resources: Tough Labor Laws Handling distribution of Allergan products in South Korea will be crucial in a successful operation, requiring a significant amount of labor. While Korea's workforce is well-educated and hardworking, foreign investment into the country is impeded by some of the most stringent labor laws in the world. According to a Swiss-based international institute that ranked 60 countries based on labor flexibility, South Korea ranked 44th. Many foreign investors have also cited very volatile relations between the labor force and management2. Much of South Korea's labor laws were developed at a time when the government could not afford to provide security for the labor force, and
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