Strategic Analysis of Alcon Laboratories Inc. Case Study

This case study provides a comprehensive analysis of Alcon Laboratories Inc., a leading ophthalmic pharmaceuticals company with a global presence. It examines Alcon's history, current situation, including its research and development, business focus, and product categories. The study identifies a decline in sales in Pakistan as a key problem, prompting an investigation into internal and external factors. The analysis includes industry analysis, Porter's Five Forces, and financial evaluation. A proposed solution is presented, incorporating a vision and mission statement, SWOT analysis, and an evaluation of internal and external factors. The case study utilizes various strategic tools like TOWS matrix, IE matrix, and grand strategy market to formulate recommendations. The conclusion provides strategic recommendations for Alcon's business in Pakistan, aiming to improve performance and market position. The study also includes references to support the analysis.

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ALCON CASE STUDY

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Contents
ALCON CASE STUDY......................................................................................................7
INTRODUCTION...............................................................................................................7
CURRENT SITUATION.....................................................................................................7
Research and Development.........................................................................................................7
Business Focus.............................................................................................................................8
Customer Vision Care..................................................................................................8
Pharmaceutical.............................................................................................................8
Surgical........................................................................................................................8
Corporate Responsibility.............................................................................................................9
Core Competencies....................................................................................................................10
Research and Development.......................................................................................10
Manufacturing............................................................................................................10
Sales...........................................................................................................................10
Values.........................................................................................................................10
Workplace Culture.....................................................................................................10
Community Involvement...........................................................................................11
Training and Development.........................................................................................11
Health and Wellness...................................................................................................11

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Product Categories.....................................................................................................11
Organogram...............................................................................................................12
THE PROBLEM................................................................................................................12
Pakistan Branch.........................................................................................................12
Industry Analysis.......................................................................................................13
Eye Care in Pakistan..................................................................................................14
Porter Analysis Of 5 Forces.......................................................................................................15
Buyer’s Bargaining Power – Low.............................................................................15
Suppliers’ Bargaining Power – Low..........................................................................15
Barriers for Entry – Moderate....................................................................................15
Substitutes Threat – Moderate...................................................................................15
Competitive Rivalry – High.......................................................................................16
Financial Analysis.....................................................................................................................16
SOLUTION.......................................................................................................................16
Vision.........................................................................................................................................16
Mission......................................................................................................................................17
Evaluation Of Mission Statement..............................................................................................17
Swot Analysis............................................................................................................................18
OBJECTIVES IN LOG TERM.................................................................................................20
JUSTIFICATION...............................................................................................................21
METHOD OF INTERNAL FACTOR EVALUATION...........................................................21
Matrix for internal factor evaluation..........................................................................21
Interpretation..............................................................................................................24

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EVALUATION OF EXTERNAL FACTORS..........................................................................24
Matrix for External Factor Evaluation.......................................................................24
Interpretation..............................................................................................................25
COMPETITIVE PROFILE MATRIX.......................................................................................25
Interpretation..............................................................................................................26
TOWS ALCON LAB INC. MATRIX.......................................................................................27
IE MATRIX...............................................................................................................................33
Interpretation..............................................................................................................34
GRAND STRATEGY MARKET.............................................................................................34
Interpretation..............................................................................................................35
Interpretation..............................................................................................................38
CONCLUSION AND RECOMMENDATION.................................................................38
REFERENCES..................................................................................................................39

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EXECUTIVE SUMMARY
Alcon Laboratories Inc. Stands as a strategic and leading company of ophthalmic
pharmaceuticals, founded in the US and spread the company in 75 branches in throughout the
world, supplying its products to 180 companies. And Pakistan is one of such countries. The
marketed products portfolio includes various kinds of medicines, like in the areas of Surgical
IOL’s, antibiotic, dry eye management and anti-glaucoma and consumer vision care. Alcon
Laboratories Inc. in Pakistan, supplies the products, like systane, tobradex, torec, vigamox,
travatan, acrysoft IOL and many other products.
The aim of the report is to perform thorough analysis of Alcon’s strategic management.
The study includes study of the overall industry and the healthcare industry in Pakistan. Sudden
decline of the sales in Pakistan for one year has made the company alerted to review its business
in Pakistan. Eventual investigation and results have discovered many of the causes, both internal
and external. The problem has been identified and the strategic management has been applied
towards proposal of the solution.

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ALCON CASE STUDY
INTRODUCTION
Alcon was founded in the year 1945, with the name of Alcon Laboratories
Inc., by pharmacists, William Conner and Robert Alexander, in Texas. Majority of
Alcon is owned by Nestle, incorporating in Hunenberg, Switzerland, while the
operations are based in the US. The company develops, distributes and
manufactures various products for eye care and spread to more than 180 countries,
while operations are performed in 75 countries.
The core key divisions of business of Alcon are, pharmaceutical, surgical
and consumer vision care and other products are dry eye products and ocular
vitamins. The headquarters of the company are spread to Hunenberg, Switzerland
and Texas in the US. The company has made the revenue of $6 billion USD, in the
year 2015, having more than 17,000 employees working for the company (Alcon,
n.d.).
Alcon has released IPO (Initial Public Offering), on NYSE (New York Stock
Exchange) and share of Nestle was 75 percent of Alcon. However, Novartis
acquired the Alcon shares of 52 percent, owned by Nestle and became majority
owner of Alcon, in August, 2010.
CURRENT SITUATION
Research and Development
Research and Development organization of Alcon is one fo the largest,
globally, with more than 1350 employees that includes over 300 of them are O.Ds,
M.Ds or even Ph.Ds.

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Business Focus
The core business of the company is on three basic divisions, customer
vision care, pharmaceutical and surgical.
Customer Vision Care
Alcon, being second largest consume vision care products manufacturer, it
produces various innovative products, to meet the demands of eye care for the
global consumers. The line fo consumer care products include products for contact
lens care, like OPTI-FREE line of contact line solution and a full artificial tears
line, providing great relaxation and comfort for the patients, who suffer from
possible dry eye (Alcon, n.d.). Furthermore, allergy eye drops of consumer care
and ocular dietary supplements enhance the health of eyes, as people grow with
age.
Pharmaceutical
Alcon, apart from being one of the leaders in the pharmaceuticals, for the
eye, also promotes itself with advance treatments, for various diseases, like
infection, glaucoma and allergy, with parallel expansion of its focus into newer
areas, like diabetic retinopathy, macular degeneration and many other diseases that
are sight-threatening.
Surgical
Alcon has the surgical products that are most ophthalmic surgical products
comprehensive portfolio that enables to achieve optimal results, by surgeons, for
their patients. Alcon stands as one of the leader in the products of ophthalmic
surgical, a premier position is occupied by Alcon in surgical suits, worldwide and
promotes all kinds of ocular surgical procedure relevant products. Intraocular
lenses, which are most preferred line, in the world, developed and manufactured by
Alcon, with the name, AcrySofR with global share of 60 percent (Alcon, n.d.).

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Corporate Responsibility
Alcon offers commitment of involvement of humanitarian and community
that needed for people and either they can afford or not, but can be aare that the
medicine exists. The significant part of the culture involves responsibility to the
humanity and community as a whole. The company offers a program for patient
assistance, for the people in need, who lack enough to pay and in need of therapies.
Alcon offers commitment to quality with simple conformance to program or
product requirement and specifications and improve quality management system
and all business process aspects it strives to comply with highest statutory
requirements and regulatory level and meet or exceed such standards consistently,
in the market. It recognizes local requirements and controls and yet ensures
compliance, in global markets.
It believes the way it conducts the businesses and strives to operate with
transparency and honesty in higher level. This commitment is considered as the
foundation for everything, in the company.
Alcon has a dedication as a corporation to earn the trust of the physicians
and patients, continually, in preserving, protecting and restoring the sight, showing
highest ethics standards in the business process every day. Alcon shows
commitment to integrity of creation and maintenance of trist centered and ethical
relationships with the patients and healthcare professionals. Alcon creates shared
value, in conducting business, also according to teh philosophy of Nestle for
corporate social responsibility and create shared value.
Alcon concerns the environmental management and safety, following the
external regulator agencies and following environmental policies and principles.
Alcon has won the certification of the facilities of manufacturing and Research and
Development, by ISO 14001 (Alcon, n.d.). Alcon follows full compliance with the

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REACH (Registration, Evaluation, Authorization of Chemicals) Regulation 1907 /
2006 and safety practices.
Core Competencies
Research and Development
The core competencies of Alcon are the research and development, with
financial commitment, surpassing the competitors. 17% of revenue from
pharmaceutical and 10% from overall revenue is allocated for the research,
spending more than 3 Billion US Dollars, in couple of years. R & D has more than
1700 dedicated engineers, researchers and scientists with supported staff, in the US
and Europe, with many of Ph.Ds, Doctor of Optometry and M.Ds.
Manufacturing
Other competencies are manufacturing with more than 15 plants and 6,000
individuals and organizing facilities of manufacturing along the categories of
product with the dedication of pharmaceutical, surgical, contact lense devices,
equipment and products (Alcon, n.d.).
Sales
Sales is another competency that strives to develop trust based and storng
relationships with teh customers. Customers are well accessed with clinical
education programs, practice management programs and technicql service
assistance and surgical training sites.
Values
Alcon builds and follows the values, respect, performance, commitment.
Workplace Culture
Alcon has an intensive focus and individual growth and team efforts. Each
individual have their own efforts for bettering themselves and communities as well,
enabling positive results.

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Community Involvement
Local communities support is the commitment of Alcon, including employee
volunteerism support, many school programs and many.
Training and Development
Training and development is believed by Alcon as a good investment in
future success advancement of the worldwide eye health.
Health and Wellness
Quality commitment extends to the individuals’ lives and employees, for
overall well being and health.
Product Categories
Alcon has wider ragne of products in eye care, as the following.
1. Pharmaceutical products
 Eye allergies
 Eye inflammation
 Glaucoma
 Dry eye
 Eye vitamins
2. Surgical products
 Cataract surgery
 Vitreoretinal
 Refractive surgery
3. Consumer vision care
 Contact lens care

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Organogram
Figure: Organogram of Alcon
THE PROBLEM
Pakistan Branch
Pakistan is one of the countries, where Alcon has its sales in boom. The
organogram of Alcon in Pakistan, is as the following.

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Figure: Pakistan Organogram
Industry Analysis
The industry of global ophthalmic pharmaceutical offers automated,
innovated and quality ophthalmic equipment and devices to the optical retailers,
ophthalmologists and optometrists, with the size of more than 10 Billion dollars.
Eyewear sector is one of the whole ophthalmic instruments industry’s largest
markets, which has variety of products (Hill & Gareth, 2012). These products are
costlier and demand the clearing to be very careful, along with handling and
lubrication. The market is driven by increasing aged population and market of
global ophthalmic pharmaceutical and other demographic trends, expecting serious
area of growth, with annual compound growth rate of 11.11%, to 2012.
The market of ophthalmic pharmaceutical is categorized into majorly 6
diseases.
1. Glaucoma

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2. Dry eye syndrome
3. Ocular infection
4. Macular degeneration, related with age
5. Ocular allergy
6. Ocular inflammation
Having known the need of education of eye diseases, governments promote
the ophthalmology education to the medical university students, applying to their
curriculum.
Eye Care in Pakistan
Eye care condition in Pakistan is in very initial conditions and needs
thorough development, as it is initial stage. The system of weak health underlies
the status of poor health and widespread of poverty of the population are the
reasons. And funding of Government is continued to be minimal to 3% of its GDP
and ophthalmic market of Pakistan best with various difficulties. Strict control of
government on pricing, resulted poor availability of drugs that are uneconomical
and they are available at inflated price or in the black markets or even may
completely disappear. So, foreign owned and local manufacturers are unable to
generate enough investment of capital, with their little profits in such environment,
with no help of regulatory system. The system demands stronger supply chain, by
bringing internal efficiencies. Pakistan remains in the nation’s global community,
as ‘outsider’, providing protection of intellectual property for the products of
ophthalmic pharmaceutical. Presently, there is only protection for the processes,
but not for the products (Kiechel & Walter, 2010). The current issue of Pakistan
ophthalmic pharmaceutical industry is that piracy continues to losses infliction, on
the ophthalmic pharmaceutical industry that is based on the research.

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Porter Analysis Of 5 Forces
Buyer’s Bargaining Power – Low
Ophthalmic industry has a unique feature that the product end user is
different from teh read doctor, the influencer, as consumer has to go with the
choice of doctor. The buyer has only choice of price of product. So, buyers are
scattered in the industry and does not wield enough power in the products pricing.
But, government plays vital role in the price regulation.
Suppliers’ Bargaining Power – Low
The industry of ophthalmic is based on many organic chemicals. Since the
chemical industry is so much fragmented and competitive with chemicals become
commodity. So, there is only very low power of bargaining for suppliers and
companies easily switch between suppliers, with no high cost incurring (Mulcaster,
2009). But, supplier may move ahead and become a ophthalmic company, with
forward integration.
Barriers for Entry – Moderate
The industry is least accessible for the Pakistan entrepreneur, since the
requirement of capital is so high, though there is easier regional distribution
network creation, because of the restriction of point of sales. But, creation of
franchisee and brand awareness to doctors would be the key of success and
survival. There may be additional hindrance for new manufacturing operations
establishment, because of the government’s quality regulations. And new patient
regime impending will raise an entry barrier. However, since the generics market is
huge, the discouragement is unlikely for the new entrants.
Substitutes Threat – Moderate
It is biggest ophthalmic industry’s advantage. The product continues to exist,
no matter what happened, because of the high competitiveness and can have

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infinite future. But, recently the eye care technology advancement proves to be a
synthetic ophthalmic industry threat.
Competitive Rivalry – High
Competitive rivalry pressure is high in this industry, because Alcon stands to
be in top and the three competitors are Novartis, Rimigton and Berret Hodgson.
Financial Analysis
The trend of profitability is increasing during the years 2008 and 2009, for
Alcon in Pakistan and this is the problem or challenge for the study. Saves analysis
reveals that the Alcon sales growth in Pakistan, decreased by 18% from 2008 to
2009, though the loss is not significant, because of devaluation of rupee and when
converted into dollars.
There is a growth of expenses to 5%, than previous years. The net Alcon Lab
Inc. Net income have the marginal increase for the 2009 year compared to the 2008
year and this increase is because of the orders made previously in the previous and
compelted in the 2009 year and got increased value of dollar. The Pakistan overall
financial performance is low, with CAFE region, as opposite to the other regions,
US, Japan, EURMEA, LACAR (Hamel & Gary, 2002).
SOLUTION
The new possible, proposed and strategized solution has following vision
and mission.
Vision
To make the company as the most trusted fro eye care and to be first eye
care professionals’ choice and by patients, worldwide.

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Mission
To develop and discover ways of products of eye care, towards quality of
life improvement, through enabling the individuals to see better and to accomplish
by eye are professionals partnership, towards the eye disease treatment
advancement and help experiencing the possible vision, around the world. The
company is committed to conduct all activities of business to the highest legal and
ethical standards with dedication of quality and continuous improvement, sought
with significant return, based on continued excellence pursuit, to the stock holders
and creating great career opportunities for all the employees.
Evaluation Of Mission Statement
Elements Validation with Yes or No
Markets Yes,
Customers Yes, for professionals of
eye care
Services or products Yes for product of eye care
Growth concern Yes, to seek great return for
the company’s stockholders
Technology Yes, for advanced eye
disease treatment
Public image concern Yes for highest legal and
ethical standards
Philosophy Yes, for improving the life
quality, through making
individual with better vision
Employees concern Yes for career opportunities
Self-concept Yes, consistent
enhancement in every activitiy

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Swot Analysis
(Laszlo & Zhexembayeva, 2011)
Strengths
Wider range of products, in three
areas
Varied original research
Highest quality and innovative
product standards
Emphasis on the workers’ and
environment health and safety
Strong function of research and
development
Strong distribution for center
Efficient and effective software
for MIS and research
Trained and strong team for sales
and marketing
Highly motivated employees
Expansion of emerging markets,
from 15.5% to 18.3%
Continuation of key product
launch, incrementally, in the
market
Increase employee development
focus and succession planning for
robust leadership pipeline support
Weaknesses
Internal control lack over the sales
force that ends up in sales trend
decline, in previous two years
Failed for FDA approval gain of
Patanol, in 2009
Pakistan sales people lack in
interpersonal and communcaiton
skill

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and talent for the future of the
company
PATANOL of company, to be the
leading prescription eye drop in
the world
Stand as surgical products
worldwide, ranges from cataract
and intraocular lenses and
refractive surgery and to be
largest pharmaceutical company
with 15 pharmaceutical products,
in the world
Largest contact lens care product
manufacturer and to be known for
artificial tears and eye vitamin
products
Opportunities
High growth in market, for till
12% in a year
Very competitive market with
national corporations and MNCs
Pakistan’s healthcare that is
under-developed with weaker
health system, because of
population poor health status
Threats
• threats faced,
because of the increased market
share trend by multinationals, in
past few year with more
contribution of threat from Berrtt
hodgon and Rimington
No protection for patent in

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Private sector health center
growth trend in Pakistan, creating
medical faculties and health
awareness
Advanced facilities through
internet, for product
advertisement
Pakistan
Cheaper prices of generic
products, continuous of infliction
of losses on the industry
Inclination of patients to generic
products
Strict control of government on
pricing and no increase in last 7
years
Pakistan’s currency devaluation
Uncertainty in politics and law
and order and resulting threat to
the future investment and growth
in Pakistan
Strong advertising in media by
competitors
OBJECTIVES IN LOG TERM
The objectives proposed to achieve in the next five years are as the
following.
1. Sustainable leadership to stand as the largest ophthalmic company with 35/5% of
market share in Pakistan, with better access for eye disease treatment advancement
for following 2 to 3 years.
2. To gain good growth rate in organic sales, more than 8.3% in the market of
Pakistan, in entire key businesses
3. To work on sales executive’s selling skills, interpersonal skills, communication
skills, hard and soft skills to ensure improvement in next 2 to 3 years to be 100%

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4. To achieve the comprehensive target list of re-evaluation to 100%for opportunities
partnering, by the area of therapy and action mechanism in following 2 to 3 years.
5. To stand as the lead in the industry, to introduce new surgical, pharmaceutical,
ophthalmic and consumer vision products, in the following 3 to 4 years.
6. To sustain in leadership of the pharmaceutical and surgical group market in next 5
years, in Pakistan(Zhexembayeva, 2014)
JUSTIFICATION
METHOD OF INTERNAL FACTOR EVALUATION
Matrix for internal factor evaluation
(Mckeown & Max, 2012)
Key
Internal Factors
Weight Rating Score
Wegihted
STRENGT
HS
Provision
of original
research variety
0.10 4 0.40
Expansion
of emerging
market from
15.5% to 18.3%,
of the total sales
0.10 3 0.30
Provision
of highest quality
product standards
0.10 4 0.30
Continuous 0.05 3 0.15

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key product
launch in the new
market,
incrementally
Emphasis
over teh workers
and environemnt’s
health and safety
0.05 4 0.20
Strong
center for
distribution
0.10 4 0.40
Efficient
and effective
software for MIS
and research
0.05 2 0.10
Well
motivated
employees
0.10 3 0.30
Trained and
strong team for
sales and
marketing
0.010 4 .40
More
employee
succession and
development
planning focus
0.10 4 0.40

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WEAKNES
SES
Failure of
gaining Patanol
approval from
FDA, in 2009
0.04 3 0.12
Lack of
skills by Pakistan
people
0.05 2 0.10
Declining
sales and lack of
internal control, in
previous 2 years
0.06 1 0.01
TOTAL 1.00 3.23
Rating of scale
1 – serious weakness
2 – Minor weakness
3 – Minor strength
4 – Major strength
Interpretation
> 2-3 as average industry and
< 2 as weak presence of industry
> 3, as a strong industry
EVALUATION OF EXTERNAL FACTORS
Matrix for External Factor Evaluation

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Key External Factors W
eight
R
ating
Score
weight
High growth of market, for 12% in a
year
0
.15
4 0.60
More competitive market, comprising
of national corporations and MNCs
0
.15
3 0.45
Pakistan’s under-developed industry of
healthcare, having weaker health system
0
.15
3 0.45
Private sector health centers growth
trend in Pakistan
0
.15
3 0.45
Advanced facilities provision by
internet, for product advertisement
0
.10
3 0.30
Industry 0
.20
4 0.80
THREATS
Strict price control by government 0
.05
3 0.15
No protection for product patent in
Pakistan
0
.10
3 0.30
Cheaper generic products 0
.10
2 0.20
TOTAL 1
.00
3.25
Rating of scale
1 as Poor
2 as Average
3 as Above Average

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4 as Superior
Interpretation
When, > 3.20, as company complete awareness and in process of taking full
action
Between 2.5 to 3.20, as the company is aware and initiated certain action
<2.4, as the company has not initiated any action
So, based on the total score obtained, which is 3.25, it can be interpreted that
the company is completely aware of the situation and has been taking full action
(IBM, 2012).
COMPETITIVE PROFILE MATRIX
Criti
cal Success
Factor
W
eightage
Ri
mington
N
ovartis
A
lcon
Ra
ting
E
xtended
R
ating
E
xtended
R
ating
E
xtended
Rese
rach and
Developme
nt
0.
20
3 0.
60
4 0.
80
4 0.
80
Larg
e share of
market
0.
10
3 0.
30
4 0.
40
4 0.
40
Adve
rtising
0.
50
3 0.
15
4 0.
20
3 0.
15
Vast
line of
product
0.
10
3 0.
30
2 0.
20
3 0.
30

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Stron
g financial
position
0.
10
3 0.
30
4 0.
40
3 0.
30
Effec
tive
distribution
0.
15
4 0.
60
3 0.
45
3 0.
45
Reco
gnition of
brand
0.
20
2 0.
40
3 0.
60
4 0.
80
Rating of the scale
1 as Major weakness
2 as Minor weakness
3 as Minor Strength
4 as Major Strength
Interpretation
The objective of the CPM is to identify the major competitors of the firm
and respective weaknesses and strengths in strategic position of the sample firm.
There are two significant factors to the industry success, which are brand
recognition and research and development (Armstrng & Kesten, 2007). Here,
Alcon stands in the first postion, followed by Novartis and Rimington.
TOWS ALCON LAB INC. MATRIX
STERNGTHS
 Wider range of
products, in three
areas
 Varied original
WEAKNESSES
 Internal control
lack over the sales
force that ends up
in sales trend
decline, in

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research
 Highest quality
and innovative
product standards
 Emphasis on the
workers’ and
environment
health and safety
 Strong function of
research and
development
 Strong distribution
for center
 Efficient and
effective software
for MIS and
research
 Trained and strong
team for sales and
marketing
 Highly motivated
employees
 Expansion of
emerging markets,
from 15.5% to
18.3%
 Continuation of
previous two years
 Failed for FDA
approval gain of
Patanol, in 2009
 Pakistan sales
people lack in
interpersonal and
communication
skill

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key product
launch,
incrementally, in
teh market
 Increase employee
development focus
and succession
planning for
robust leadership
pipeline support
and talent for the
future of the
company
 PATANOL of
company, to be the
leading
prescription eye
drop in the world
 Stand as surgical
products
worldwide, ranges
from cataract and
intraocular lenses
and refractive
surgery and to be
largest
pharmaceutical

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company with 15
phramaceutical
products, in teh
world
 Largest contact
lens care product
manufacturer and
to be known for
artificial tears and
eye vitamin
products
OPPORTUNITIE
S
 High growth in
market, for till
12% in a year
 Very competitive
market with
national
corporations and
MNCs
 Pakistan’s
healthcare that is
under-developed
S-O
STRATEGIES
1. Pharma of Alcon
is one of 15 top
industry products,
and accompany
has to emergy and
plan for new
market for them in
Pakistan private
health sector – S-
4, S-8 and O-4
2. New products to
W-O
STRATEGIES
1. Incrase of sales
using internet
by
advertisements
and for gaining
sales force
control,
decinign and
lacking sales
trend
O-5, W-1 and

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with weaker health
system, because of
population poor
health status
 Private sector
health center
growth trend in
Pakistan, creating
medical facilities
and health
awareness
Advanced
facilities through
internet, for product
advertisement
be introduced by
Alcon, for
category of
contact lens care
and make internet
advertisement,
since internet
gives great
promotion and
publicizing
facilities
3. Competitive
product
development in
international and
national market
iwth strong sales
and marketing
trained team with
strong distribution
centers to function
as distinctive
competency- S-4,
S-6 and O-2
4. Launch of new
products with
strong R and D,
W-3

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because of trend of
growth in health
awareness with
medical facilities
private sectors , S-
2, S-5 and O-4
5. Rising market
development in
health care
underdeveloped
countries for sales
increase, through
reasonable price
introduction , S-7,
S-5 and O-3
6. Alcon, being one
of largest
companies of
selling in
Antiglaucoma,
globally, the
Pakistan team is
dedicated for
current 70% new
launches and
promotion of
100%

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S-8, S-2, S-4, O-4
and O-3
THREATS
threats faced,
because of the increased
market share trend by
multinationals, in past
few year with more
contribution of threat
from Berrtt hodgon and
Rimington
 No protection for
patent in Pakistan
 Cheaper prices of
generic products,
continuous of
infliction of losses
on the industry
 Inclination of
patients to generic
products
 Strict control of
government on
pricing and no
increase in last 7
years
 Pakistan’s
S-T SRATEGIES
1. To use
existing strong R and D,
for new product
introduction in Pakistan
and new markets at
cheap price for
overcoming the piracy
and provide easier access
to medicine to poor
population,
S-1, S-5, S-2,
T-5, T-4 and T-3
2. Making use
of strong team of sales
and strong centers for
distribution for more
share of market than the
other national
corporations,
3. S-6, S-4 and
T-1
W-T
STRATEGIES
1. Make use of
improved Patanol
formula to introduce in
the market, at reasonable
prices, with another
name towards reduction
of generic product piracy
W-2, T-4 and T-2
2. Provide
training for marketing
and medical management
to existing marketing and
sales professionals and
hire newer professionals
who are qualified and
skilled to increase the
number of distribution
centers for market share
increase
W-3, W-1 and T-1

BUSINESS PROCESS
currency
devaluation
 Uncertainty in
politics and law
and order and
resulting threat to
the future
investment and
growth in Pakistan
Strong advertising
in media by competitors
IE MATRIX
EFE = 3.25 and
IFE = 3.23
The final IFE weighted score is as the following.
Strong –
3.0 to 4.0
Average –
2.0 to 2.99
Weak – 1.0
to 1.99
High - 3.0
to 3.99
I – GROW
AND BUILD
II III
Medium –
2.0 to 2.99
IV V – HOLD
AND MAINTAIN
VI
Low – 1.0
to 1.99
VII VIII IX –
HARVEST OR
DIVEST
EFE Total
Weighted Score

BUSINESS PROCESS
Interpretation
From the IE matrix, the lines in vertical and horizontal meet in any one of
the 9th quadrant. In this context, two lines meet in the first quadrant. So, strategy to
be followed based on, in which quadrant, the company lies and the result is shown
as GROW AND BUILD (Mulcaster, 2009). So, the strategy, relevant to this would
product development, intensive market penetration and development of market and
integrative, such as horizontal, backward and forward integration.
GRAND STRATEGY MARKET
Interpretation
First quadrant shows strong rapid market growth and strong competitive
position
Rapid
Market Growth
ALCON LAB
INC.
Mkt
penetration and dvpt,
product dvpt, horizontal,
forward and backward
integration and related
diversification
QUAR
QUAR
Weak
competitive
Strong
competitive
QUARQUAR
Slow
Market Growth

BUSINESS PROCESS
MATRIX FOR QUANTITATIVE STRATEGIC PLANNING
Critical
Success
Factor
W
eightage
Prod
uct
Developme
nt
Mark
et
Developme
nt
Ma
rket
Penetrati
on
AS T
AS
AS T
AS
AS T
AS
Variety
of original
research
provision
0.
10
4 0
.40
3 0
.30
4 0
.40
Expansi
on of market
to 18.3%
0.
10
3 0
.30
3 0
.30
3 0
.30
High
quality
product
standard
0.
10
4 0
.40
4 0
.40
4 0
.40
Keep
launch of key
products
0.
05
3 0
.15
3 0
.15
3 0
.15
Emphas
is on workers
health
0.
05
- - - - 3 0
.15
Strong
center for
distribution
0.
10
- - 4 0
.40
3 0
.30

BUSINESS PROCESS
Softwar
e for MIS and
research
0.
05
3 0
.15
2 0
.10
3 0
.15
Employ
ee motivation
0.
10
4 0
.40
- - 4 0
.40
Trained
and strong
teams
0.
10
- - 2 0
.20
4 0
.40
More
focus on
development
of employee
0.
10
- - 1 0
.10
3 0
.30
WEAK
NESSES
FDA
approval
failure for
Patano
0.
04
4 0
.16
3 0
.15
2 0
.10
Lack of
internal
control
0.
05
- - 3 0
.15
2 0
.10
Decline
d sales
0.
06
- - - - - -
WEIG
HT
1.
0

BUSINESS PROCESS
Key
external factors
W
eight
Prod
uct
developme
nt m
Mar
ket
developme
nt
Ma
rket
penetratio
n
OPPORT
UNITIES
12%
Market growth
0
.15
3 0
.45
3 0
.45
4 0
.60
Competiti
ve market
0
.15
3 0
.45
3 0
.45
3 0
.45
Under
developed
healthcare
industry
0
.15
4 0
.60
3 0
.45
4 0
.60
Private
sector growth
trend
0
.10
4 0
.40
3 0
.30
3 0
.30
Advertisin
g facilities
0
.20
4 0
.80
2 0
.40
3 0
.60
THREATS
Strict
government
control
0
.05
1 0
.05
- -
-
- -
No
protection for
patent
0
.10
4 0
.40
- - - -
Cheaper 0 4 0 - - - -

BUSINESS PROCESS
generic product .10 .40
-TOTAL
WEIGHT
1
.00
GRAND
TOTAL
5.51 4.28 5.8
0
Interpretation
Highest score is scored for market penetration and product development and
so according to judgment of QSPM institutive, Alcon has to go for the same.
CONCLUSION AND RECOMMENDATION
There are three solutions that can be proposed towards increasing the sales
and penetration of the Alcon products in Pakistan. The three strategized solutions
are product development, market development and market penetration. With the
detailed analysis of the three proposed analysis and based on the QSP matrix, it
should be concluded that the market penetration and product development and
market development stand as three descending options. So, the best optional
strategic solution is recommended to be market penetration.
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