Dr. Reddy's New Corporate Identity|Business Strategy|Case Study|Case Studies

Dr. Reddy's New Corporate Identity

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Case Details:

Case Code : BSTR013
Case Length : 9 Pages
Period : 2000-2001
Organization : Dr. Reddy Labs, American Remedies Ltd, Cheminor Drugs Ltd.
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Healthcare & Pharmaceuticals

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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A Note on the Indian Pharmaceutical Industry

The Indian pharmaceutical industry was a highly fragmented one with more than 20,000 registered units in 1998-99.

It had increased drastically between 1980 and 2000. The 250 leading pharmaceutical companies controlled 70% of the market. Glaxo-Wellcome was the market leader with 6.3% of the marketshare in 1999. The industry had become extremely competitive due to fragmentation with severe price competition and government price control. Over the years, the Indian pharmaceutical industry had evolved around the opportunities presented in the regulated environment:

Lack of product patent: The Indian Patent Act of 1970 allowed Indian companies to reverse - engineer the patented molecules and launch them in the domestic market...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The New Corporate Identity

In 2000, DRL hired Enterprise IG (EIG), to implement its new corporate identity plan. The whole exercise was completed in a year and evolved over nine stages, beginning with an across-the-board study of the perceptions of different stakeholders and ending in a brand manual that was to be implemented by the employees.

In the new corporate identity, changes were carried out at two levels-

i) institutional: implemented throughout the company, and

ii) at a more individual level surrounding the persona of the founder, Dr Reddy. The new corporate identity plan also emphasized control of the top management should be passed onto by the second generation: Dr Reddy's son-in-law and Chief Executive Officer, GV Prasad (Prasad), and son and Chief Operating Officer, Satish Reddy (Satish). Commented Prasad, "We have almost reinvented ourselves, compared to what we did in 1994 when we only tinkered with the logo..."

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