Glaxo Wellcome Mini Case Essay

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Glaxo Wellcome Inc.
Mini-case Report
April 2, 2007


Executive Summary

Glaxo Wellcome Inc’s primary business is to market prescription products to physicians and health care providers. One of the top three pharmaceutical firms in the world, Glaxo Wellcome Inc. held about 4 percent of the worldwide prescription pharmaceutical market. The U.K. based company was formed in 1995 when Glaxo Pharmaceuticals acquired Burroughs Wellcome. While the company is based in the U.K., the U.S. market represented approximately 40 percent of worldwide sales while the U.K. produced about seven percent. As of 1997 Glaxo Wellcome Inc. had 22 local operating companies in nine countries including the U.S. Because of the harsh requirements of the …show more content…

The implications of these two differences in terms of positioning strategies are vast. The inability to utilize DTC advertising prevented the U.K. from successfully pursuing alternative positioning strategies, such patient-based segmentation, due to concerns about the physician’s ability to identify such segments and further confusing the prescribing process. Moreover, in a socialized health care system where patients are entitled to free medical care, patients can seek treatment easier and can be less involved in the prescribing process than in an insurance-based system where there is more monetary involvement. Although this strategy might communicate a clear message about the drug’s superiority, it would devalue the brand name built for Imitrex, drastically impacting its potential profitability as well as the ability to continue to recuperate the high investments already sunk into the R&D and marketing of Imitrex.
2. Competition Strategy: since Zomig is expected to be launched prior to the FDA approval of Amerge, Glaxo U.S. can position Amerge directly against Zomig. They can utilize their position as the market leader to leverage Amerge’s positioning as the true second-generation triptan providing the best relief on the market. Glaxo U.S. can back up their claims with the results from the UK where the majority of previous non-triptan users prefer Naramig. Although this strategy could

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