| Summary: | The objective of this study is to analyze diversification strategy of
pharmaceutical industry to non-drug category and explore potential drawbacks.
Recently this strategy has been an attractive option for pharmaceutical company
to boost its future revenue and bottom line growth considering high expenses in
research and development and increasing pressure from the government to reduce
drug�s price.
To reach the above objective, descriptive study has been conducted at PT
Combiphar, a local pharmaceutical company which has 13th position in Indonesia
(2010). The study has run in July and August this year, by interviewing top
management from marketing, sales, production, business development and also
supply chain.
The result concludes that diversification to non-drug category can be
future source of growth. But the critical consideration before going to that
direction is choosing the right category to ensure that the company owns
resources and competences to be the sustainable competitive advantage.
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