GlaxoSmithKline (GSK), a major AIDS drug provider worldwide was suffering a crisis in its South African market segment. Major issues that needed addressed were as follows:
1) Protecting Patents under the TRIPS Agreement to recover Research & Development costs of their AIDS drug research
2) Addressing the social aspects of the South African nation after their post-apartheid oppression and the lack of willingness to adapt preventative methods to the HIV/AIDS virus
3) Issues of humanity existed. AIDS victims were waiting for reasonably priced generics while pharmaceutical companies attempted to reserve patent rights and compensate for Research and Development costs ...view middle of the document...
Some strategic options that could be employed by GSK in South Africa are:
• GSK could negotiate with South African Government to grant some subsidies for their products, to bring them to an affordable price within the reach of the people
• GSK could approach the World Trade Organization to intervene in the matter
• GSK could inform South African Government about the R&D cost of making the drugs and convince them that the effectiveness and quality of the drug could be significantly hampered by choosing a generic drug, thus restricting the generic drug suppliers
• GSK could offer their drugs at a lower price, such as the “Cut the Cost” campaign but even more reduced for underdeveloped countries
• GSK could continue investing in R&D on diseases that affect the developing world to counteract other severe diseases these countries suffer from such as Malaria and TB
Some would argue that the South African people were uneducated about HIV/AIDS and that their culture was a driver for their current state of emergency. Some strategic options that could be employed by the South African Government to reduce the spread of the disease and increase awareness are:
• South Africa could develop programs to teach the African people about how the disease is spread and how to prevent the disease in future generations
• The government could offer testing and treatment facilities to identify those that are infected with the virus
• South Africa...