• Synergy: o This means that when businesses combine the performance will increase and costs will decrease.
• Growth o Obagi wanted to expand and grow within the pharmaceutical market. One of their weaknesses was that it was a small business and that made it difficult for them to over power other companies whom they were competing against.
• Increase Supply-Chain Pricing Power o Increasing supply-chain pricing power would be to decrease costs of distribution while increasing the speed of distribution.
• Eliminate competition: o The global pharmaceutical market is a highly competitive market and Valeant and Obagi were, before the acquisition, competitors. Through this acquisition not only would they increase both revenues of the companies …show more content…
Their other marketing channel is their digital platform, which is their main communication tool with customers. Valeant Pharmaceuticals advertise their products using direct mailings, as well as advertising in trade and medical periodicals and exhibiting their products in medical conventions. They also sponsor medical education conferences that help to advertise and raise awareness of their products. With this acquisition Obagi was able to expand their marketing channels.
Valeant pharmaceuticals have many distributional channels, which include physicians, hospitals, pharmacies, wholesalers and large drug store chains. Before the acquisition Obagi’s main distributional channels is through their spa and clinic as well as through their pharmacy. However with this acquisition Obagi products are now able to reach their customers through these different distribution channels. This allows the distribution of Obagi to be less expensive as well as increases its accessibility to sales point. It also allows Obagi to reach other geographical region and also allows Valeant to increase in certain geographical areas. As seen , there was a great increase in Valeant’s revenue within the US and in the other geographic
• Growth o Obagi wanted to expand and grow within the pharmaceutical market. One of their weaknesses was that it was a small business and that made it difficult for them to over power other companies whom they were competing against.
• Increase Supply-Chain Pricing Power o Increasing supply-chain pricing power would be to decrease costs of distribution while increasing the speed of distribution.
• Eliminate competition: o The global pharmaceutical market is a highly competitive market and Valeant and Obagi were, before the acquisition, competitors. Through this acquisition not only would they increase both revenues of the companies …show more content…
Their other marketing channel is their digital platform, which is their main communication tool with customers. Valeant Pharmaceuticals advertise their products using direct mailings, as well as advertising in trade and medical periodicals and exhibiting their products in medical conventions. They also sponsor medical education conferences that help to advertise and raise awareness of their products. With this acquisition Obagi was able to expand their marketing channels.
Valeant pharmaceuticals have many distributional channels, which include physicians, hospitals, pharmacies, wholesalers and large drug store chains. Before the acquisition Obagi’s main distributional channels is through their spa and clinic as well as through their pharmacy. However with this acquisition Obagi products are now able to reach their customers through these different distribution channels. This allows the distribution of Obagi to be less expensive as well as increases its accessibility to sales point. It also allows Obagi to reach other geographical region and also allows Valeant to increase in certain geographical areas. As seen , there was a great increase in Valeant’s revenue within the US and in the other geographic