Traphaco: Choices for the future

• Main Author: LINGBLAD, Mats
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Strategic Management; Five Forces Analysis; Business Unit Strategies; Strategy Assesment; Business Analysis; Asian Studies; Marketing; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/74; https://cmp.smu.edu.sg/case/3231
• Institution: Singapore Management University

The case study describes the traditional medicine market in Vietnam with a particular focus on Traphaco, the largest traditional medicine manufacturer in the country. The company is currently performing well, but its General Director is concerned about adjusting to and taking advantage of the changes in the market place. The company’s strategy and operations in key segments of the market place are described. Key themes in the case study: (1) Traphaco is present in several segments of the pharmaceutical market in Vietnam. The company is potentially stuck in the middle between low cost and differentiation strategies. (2) Product development and marketing are currently important drivers of success. These two capabilities need to be strengthened. (3) The strategy for traditional medicine will probably require tweaking (e.g. relationship with pharmacies, pricing).