Bristol-Myers Squibb Case Study

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spinoff of Tyco, ADT, and Zimmer. These businesses were deemed expendable. As results of the divestitures, Bristol manufacturing activities declined by 50% and two thirds of employees were laid off by the year 2013.

As a third major strategy, BMS utilized strategic alliances, which is a contractual partnership with other companies that do not take an equity position in one another. BMS aligned with Reckitt Benckiser in 2013. In the deal, Reckitt Benckiser was given exclusive rights to sell, distribute, and market seven different products for BMS for three years, which led to a substantial increase in market share in Latin American markets. Later that year, BMS entered into a strategic alliance with Simcere Pharmaceutical Group, a leading pharmaceutical company in China. The two companies aligned to develop and commercialize a rheumatoid arthritis drug. The alliance focused on clinical development and commercialization of an already existing BMS product. This and similar changes led to a more focused organization.

These acquisitions, divestitures, joint ventures, and strategic alliances, produced an overall upward financial trend. Despite considerable volatility in global sales, BMS stock steadily improved from 2008 to 2013. Therefore, the strategies paid off in the long run for Bristol-Myers Squibb as they were able to reinvent itself in an attempt to maintain its foothold as a dominant pharmaceutical company in the industry. They went from being a possible takeover target to making an impressive transformation by 2013.

At this point, I would recommend recommitting to its research and development capabilities and implement a moderate product development strategy in order to stimulate sales throughout various global markets. This will help in maintaining their position in the pharmaceutical industry.