• Synergy: o This means that when businesses combine the performance will increase and costs will decrease.
• Growth o Obagi wanted to expand and grow within the pharmaceutical market. One of their weaknesses was that it was a small business and that made it difficult for them to over power other companies whom they were competing against.
• Increase Supply-Chain Pricing Power o Increasing supply-chain pricing power would be to decrease costs of distribution while increasing the speed of distribution.
• Eliminate competition: o The global pharmaceutical market is a highly competitive market and Valeant and Obagi were, before the acquisition, competitors. Through this acquisition not only would they increase both revenues of the companies but also decrease competition within the market. • Improve finance o All companies aim to improve their profitability and through this acquisition Obagi would be able to use Valeant’s financial leverage in order to increase their revenue. This would therefore improve their finance and no longer have limited cash flow as a threat. How To Measure Success Of An Acquisition? Success of an acquisition is measured in many ways. The following is a list of ways in which companies can measure the success of an acquisition: • Improvement of performance in terms of: o Increase in revenue o Increase in earnings per share • Growth in business in terms of: o Growth in cash flow position o Growth in market position o Growth in distribution Benefit Of The Acquisition: Obagi’s main marketing channel is through their customized service, which is via their Spa. …show more content…
Their other marketing channel is their digital platform, which is their main communication tool with customers. Valeant Pharmaceuticals advertise their products using direct mailings, as well as advertising in trade and medical periodicals and exhibiting their products in medical conventions. They also sponsor medical education conferences that help to advertise and raise awareness of their products. With this acquisition Obagi was able to expand their marketing channels.
Valeant pharmaceuticals have many distributional channels, which include physicians, hospitals, pharmacies, wholesalers and large drug store chains. Before the acquisition Obagi’s main distributional channels is through their spa and clinic as well as through their pharmacy. However with this acquisition Obagi products are now able to reach their customers through these different distribution channels. This allows the distribution of Obagi to be less expensive as well as increases its accessibility to sales point. It also allows Obagi to reach other geographical region and also allows Valeant to increase in certain geographical areas. As seen , there was a great increase in Valeant’s revenue within the US and in the other geographic nations. Obagi’s products and services are aimed for women. They target women whom are above 30 and 40 years old whom are individual and self-confident, as well as those whom wish to eliminate signs of aging as well as those whom have problems with their skin. However, some products are targeted towards other markets such as physicians which helps increase Obagi’s sales. Valeant’s customer demographic is around the same age group and this allows for the raising of awareness of Obagi’s products through Valeant’s customers. Change in Obagi’s Mission and Vision Statement When Obagi was first founded by Dr. Obagi it was initially launched to provide prescription based products for doctors to provide
• Growth o Obagi wanted to expand and grow within the pharmaceutical market. One of their weaknesses was that it was a small business and that made it difficult for them to over power other companies whom they were competing against.
• Increase Supply-Chain Pricing Power o Increasing supply-chain pricing power would be to decrease costs of distribution while increasing the speed of distribution.
• Eliminate competition: o The global pharmaceutical market is a highly competitive market and Valeant and Obagi were, before the acquisition, competitors. Through this acquisition not only would they increase both revenues of the companies but also decrease competition within the market. • Improve finance o All companies aim to improve their profitability and through this acquisition Obagi would be able to use Valeant’s financial leverage in order to increase their revenue. This would therefore improve their finance and no longer have limited cash flow as a threat. How To Measure Success Of An Acquisition? Success of an acquisition is measured in many ways. The following is a list of ways in which companies can measure the success of an acquisition: • Improvement of performance in terms of: o Increase in revenue o Increase in earnings per share • Growth in business in terms of: o Growth in cash flow position o Growth in market position o Growth in distribution Benefit Of The Acquisition: Obagi’s main marketing channel is through their customized service, which is via their Spa. …show more content…
Their other marketing channel is their digital platform, which is their main communication tool with customers. Valeant Pharmaceuticals advertise their products using direct mailings, as well as advertising in trade and medical periodicals and exhibiting their products in medical conventions. They also sponsor medical education conferences that help to advertise and raise awareness of their products. With this acquisition Obagi was able to expand their marketing channels.
Valeant pharmaceuticals have many distributional channels, which include physicians, hospitals, pharmacies, wholesalers and large drug store chains. Before the acquisition Obagi’s main distributional channels is through their spa and clinic as well as through their pharmacy. However with this acquisition Obagi products are now able to reach their customers through these different distribution channels. This allows the distribution of Obagi to be less expensive as well as increases its accessibility to sales point. It also allows Obagi to reach other geographical region and also allows Valeant to increase in certain geographical areas. As seen , there was a great increase in Valeant’s revenue within the US and in the other geographic nations. Obagi’s products and services are aimed for women. They target women whom are above 30 and 40 years old whom are individual and self-confident, as well as those whom wish to eliminate signs of aging as well as those whom have problems with their skin. However, some products are targeted towards other markets such as physicians which helps increase Obagi’s sales. Valeant’s customer demographic is around the same age group and this allows for the raising of awareness of Obagi’s products through Valeant’s customers. Change in Obagi’s Mission and Vision Statement When Obagi was first founded by Dr. Obagi it was initially launched to provide prescription based products for doctors to provide