C A S E T E A C H I N G N O T E S
Going for growth: Tevas global strategy
Justin Boag and Sarah Holland
1. Introduction
This case describes the international strategy that Teva followed from 2006 with a number of
2. Position of the case
The case study is primarily designed to facilitate teaching of international strategy but may also
3. Learning objectives
The case is designed to help students undertake structured analysis of a firms internationalisation
strategy, using analysis frameworks such as:
Drivers of internationalisation (Section 8.2)
4. Teaching scheme
The case study may be used as the basis for individual assignments, plenary discussion or for
small group work. For example, the tutor could lead the class through an analysis of Teva and
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5. Questions for discussion
1. What were the drivers for internationalisation that led to Tevas rapid acquisition
programme?
Supplementary question
4. Explain the key motivations behind Tevas acquisition programme and comment on how
well the programme met the ambitions of the international growth strategy.
6. Case analysis
1. What were the drivers for internationalisation that led to Tevas rapid acquisition
programme?
Students should utilise Yips four drivers for internationalisation in their analysis (Figure 8.2 in
Exploring Strategy).
The generic pharmaceutical market is one that has a high potential for internationalisation. Cost
drivers are one of the most important aspects in driving internationalisation. The generic
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2. What were the key reasons that Teva selected Asia, the US and Latin America as their target
markets and acquisition as their chosen entry method?
Students should consider the markets for pharmaceuticals and generic pharmaceuticals in
particular. Pressure on healthcare funding has driven the switch from branded medicines to their
generic equivalent once patents expire. Over the period described in the case, volume growth in
3. Using the four international strategies of Figure 8.4 describe how Teva`s international
strategy changed in 2012.
The new strategy represents an attempt to move from a mutli-domestic strategy of globally
dispersed manufacturing and product development towards a mature global strategy.
Multi-domestic strategy
Tevas initial strategy was to become, or to consolidate, their position as the dominant generic
drug producer in individual markets or regions. The purchase of regionally strong organisations,
Global strategy
The statement from the new CEO Jeremy Levin appears to be an attempt to fuse the disparate
strands of Tevas multi-domestic strategy into a clear global strategy.
Manufacturing is to be consolidated and rationalised with a significant cost saving
4. Explain the key motivations behind Tevas acquisition programme and comment on how
well the programme met the ambitions of the international growth strategy.
Students should look at the ambitious growth plans that Teva had in place and may argue that
acquisition had strong strategic motives:
Extension into new markets especially in Asia via Taisho and Taiyo