Strategic management paper for LCR Laboratory, Inc.

• Main Author: Tobing, Hardy
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Dermatology; Skin > Diseases; LCR Laboratory; Inc.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3651
• Institution: De La Salle University

LCR Laboratory, Inc. is a privately held Philippine company with over 50 years experience in the manufacture and marketing of its sole product dermatological cream/ointment anti bacterial/anti fungal, Katialis. LCR Laboratory was founded in 1929 by the late Dr. Lorenzo C. Reyes and was incorporated in 1959. Currently, LCR Laboratory is producing 200 kg ointment per day, which is packed in form of 5 grams, 15 grams and 30 grams and distributed widely to drugstores and other pharmacy stores across the country. Industry is defined as a group of firms producing products, which are close substitutes for each other that satisfy the same needs and wants. LCR Laboratory has developed and refined its product with the needs of its customers in mind and become a universally accepted term. In particular, the Katialiss name has sounded a note of resonance with people seeking fast, safe skin disease treatment and the convenience an ointment provides. With this definition, LCR Laboratory, Inc is classified under home remedies industry, which is industry where a group of firms provide product, which answer the need for prevention, treatment and preservation of skin illness. The home remedies industry is a fragmented industry. A fragmented industry is an industry in which no firm has a significant market share to influence the industry outcome. Usually fragmented industry is populated by a large number of small and medium sized companies. This paper starts with the analysis of the home remedies industry. The first module define the industry to which LCR Laboratory belongs, and proceeds to a comprehensive presentation of the macroeconomic environment of the Philippines, and its potential for growth. The author then presents the structural analysis of the industry, as it identifies the key structural features of industries that determines the strength of the competitive forces and hence industry profitability. Task Environmental analysis takes into account the five basic competitive forces, which are the threat of entry, the treat of substitution, the bargaining power of buyers, the bargaining power of suppliers and the rivalry among competitors.