Ciba Geigy Essay

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Question 1 In relation to Ciba-Geigy’s situation in Nigeria, it is important to look at the current structure of the pharmaceuticals market. Even though market growth is expected to decrease in 1983, overall the market consists of 70% over-the-counter (OTC) consumer products and 30% ethical products. This highlights the large market potential currently available in OTC products that Ciba-Geigy may be able to tap into. Coinciding with the large market potential in the OTC market is the plan that Pharma Nigeria agreed upon in March 1983. The plan highlighted the introduction of an anti-malarial drug in the company’s product portfolio. Another key factor is that only 40% of the Swiss Nigerian Chemical Company (SNCC) was owned by Ciba-Geigy, where the other 60% was owned by Nigerian investors. This was the requirement, in order to adhere to the Nigerian local ownership laws. These types of ownership laws may seem to be a deterrent to selling products in Nigeria as it does lead to reduced profits. On the hand, the market potential of the pharmaceutical market in Nigeria is too large for a company like Ciba-Geigy to pass up. A key factor concerning Ciba-Geigy and OTC drugs in Nigeria is the underutilization of many capsule filling plants. Figures show that by producing the capsule form of a new self-medication OTC drug, utilisation would rise from 20% to 60%. Hence, creating jobs and having a positive affect on growth in Nigeria. The major key factors that have emerged from an assessment of Ciba-Geigy’s situation in Nigeria mainly focus around the positive prospects of the self-medication market. In Nigeria, economic strife led to a decline in available health care, with levels of treatment and availability of drugs declining. This created a reprehensible need for readily available OTC drugs. It is important to note that some OTC drugs were available in areas without
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