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