Bayer’s Pharmaceutical sales expansion through virtual solutions

Abstract

The thesis describes Bayer’s expansion strategy through virtual solutions in the Brazilian pharmaceutical market in 2013. The case study and analysis want to provide an international strategy teaching material with the aim to offer students a ground to apply and increase their knowledge based on real life examples. Bayer is a global enterprise in the fields of healthcare, agriculture and high-tech polymer materials with a history of more than 100 years in Brazil. The multinational recently approached a disruptive innovation in form of an online salesforce system since the healthcare segment suffered from high expenses for the sales force in the territorially demanding Brazilian market. Bayer could achieve prosperous results in a pioneering test of this virtual connection between sales representatives and doctors and the decision about a final implementation required further analysis. The management board was highly interested in conclusions regarding the market attractiveness, the strategic positioning in relation to competition and the strategic fit of the new approach. The overall analysis of these criteria resulted in a recommendation for the implementation of the virtual sales force unit in Brazil. The dissertation content is a case study reflecting the past events and a strategic analysis of the virtual representatives concept as expansion strategy. The latter comprises an assessment of macro- and microeconomic factors and the impact of the new concept on the competitive landscape. Furthermore, it includes a SWOT and VRIO analysis of the company and a review of the strategic fit and intent of the new virtual unit.