Authors:Chelsea Benge, Hajun Chung, Taylor Clayton, Arin Dear-Walker, Carlos Flores, Stephan Han, Savannah Holmes, Terry Huang, Hyun Kim, Patrick Korff, Rachel Macciocchi, Luke Oh, Arturo Ortega, Jason Park, Chanou Park, Robert Rudinsky, Krista Saleh, Adelaide Suwandi, Miel Yusuf
Mentor:Venkatachalam Seshan, Professor of Management, Pepperdine University
At the end of 2012, Sanofi’s net sales totaled $45.43 billion. The company’s total global pharmaceutical industry’s Share of Market (SOM) is 4.3%, making it the fifth largest in the industry. Sanofi’s biggest competitors are: Pfizer Inc., Novartis AG and Merck and Co. Sanofi specializes in pharmaceutical products, focusing on fields such as diabetes and rare diseases. In 2012, its top sales were in the diabetes segment with $5.75 billion in sales, 13% of its total. One of Sanofi’s biggest opportunities is technology; with its recent acquisition of Genzyme, a move into the biotechnology industry, it will probably begin to utilize this opportunity. Another opportunity for Sanofi is the social dimension that will be present in the United States in the coming years. The country’s Baby Boomers are getting older, and therefore will be in need of Sanofi’s products. Sanofi’s greatest threat comes from the rise of generic drugs that will compete with Sanofi’s patents. Another threat that Sanofi faces is the regulations on pharmaceutical companies in areas like the U.S., Western Europe, and Japan The goal of this undergraduate research project is to examine Sanofi’s Share of Market (SOM) and develop new strategies to increase it. With the implementation of these strategies, Sanofi should be able to utilize its strengths to capture market opportunities and overcome its external threats. The initial findings demonstrate that the current Sanofi market share is 4.5%, which is expected to decrease as cheaper competitors enter the market with generic products which are 10% of the cost of proprietary patent’s prices.