Regulatory and environmental affairs
Frequently, governments and market regulators impact market conditions, and their actions have consequences for every stakeholder. To find the best strategic behavior in such situations, it is important to understand the underlying preferences of the regulation forces, as well as those of the other players. In contrast to most other market participants, public organizations are often not driven by commercial interests, and their objectives should be understood properly to determine the best way of acting.
We have helped our clients to develop strategic action plans to deal with such situations in the best possible ways.
Selected cases: Regulatory and environmental affairs
Portfolio/repositioning strategy for a drug at the end of its product lifecycle
In a large but saturated segment with many similar drugs/treatments (prescription), a competitor launched a new drug that was expected to quickly gain a great deal of market share. As a consequence, our client’s well-established, high-volume product in the second half of its lifecycle was seriously challenged. At the same time, their new product did not receive the approval of additional benefits from the authorities.
During the project, we helped our client develop a value-maximizing repositioning and partial pullback strategy by focusing our attention on specific patients.
Strengthen own market position despite facing multiple disruptives
In a highly competitive chemical market, our client was an established global supplier who faced multiple potential disruptive elements: potentially upcoming political regulations in the world’s biggest market segment; the possible entry of two new suppliers; rumors about shut-downs of some unprofitable smaller suppliers; and technological innovations that would create various new product applications and change customer demands drastically. With our analyses, we helped our client to identify the most impactful of those disruptives, to understand their interplays, and to develop a suitable action plan how deal with them best.
Developing a plan B in the event of an unfavorable regulatory decision
Being one of three competitors with the technology and patents to enter an attractive country, the client had been waiting for permission from the governmental authorities for three years. Six months before the final decision of the government was due, the client asked us to develop a plan B regarding how to act in case of another negative decision by the authorities regarding whether to open the market.
Countering a copycat attack
Our client was in a systems B2B business, building manufacturing systems and selling consumables. In this industry, which contained only three competitors, an Asian copycat found a way to copy the technology, break up the system, and sell consumables outside of the system. This broke up the traditional logic of the industry, which had earned money mainly through consumables.
During the project, we developed a new approach to pricing the portfolio of machines and consumables to defend against the copycat, as well as diverting the attack to the two established competitors.
Preparing and accompanying a major request for proposal
After a request for proposal, our client negotiated a complicated and innovative new technology investment in the mechanical engineering industry with the two remaining suppliers. In supporting the client during the preparation phase and the actual negotiation, complex bundling issues had to be resolved, and governmental issues were also at stake. At the same time, all parties had to safeguard their negotiating position to keep prices within the desired range and to ensure that both suppliers remained in the process