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Bvsx Case

Q1.1: Assessment of the situation
BVSx was a small independent division of a big pharmaceutical company located in Luxembourg. It is a technological leader and company number 2 in the vaccine market today. During last years BVSx’s profits raised and its share in the group revenue increased from 5 to 20%. According to analyst report by Banque de Genève, two latest cancer treatment products create a new market up to $ 2 bln. Implementation of “Augmentor®” technologies gives VxC1 (cancer treatment vaccine) several advantages over similar competitor’s product. The only problem associated with this particular case is that low efficiency of Purchasing Department and poor communications with R&D specialists led to further problems over the supply chain that as a result impacts performance of the whole project.
Q1.2: SWOT analysis * Strengths * Strong presence in the vaccine market (22% market share) * Competitive advantage of VxC1 and VxR1 vaccines: “Augmentor®” technology * Great potential for BVSx growth within vaccine market by 2020 * Strong finance support for R&D * Weaknesses * Low efficiency of Purchasing Department and Customer Relationship services * Weak in the US market * BVSx is relying on individual strengths / expertise rather than exercising advantages of a market leader in vaccine market * Relying too much on scientists without questioning them for their product needs. * Lack of developing alternate sources / near-specs materials. * Opportunities * Revamp Purchasing Department * Develop alternatives to ‘Synthemar’ where requirement in 2015 would be greater than world production * Increase BVSx’s market share in vaccine market, only market for VxC1 will grow up to $ 2 bln * Further integration with WildGrass NJ open opportunity for exclusive agreements in China for vegetal raw materials and

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