Strategies adopted by Cosmos Ltd to changing external environment
The environment in which organizations operate is constantly changing with different factors influencing them. Industries are responding to customer‟s demand by becoming more innovative in their new ways of approaching the changed environment. They adopt strategies such as improved customer services, credit facility, post-paid cards and provision of convenience goods and services. Rapid technological change has created a new business environment where innovation has become a top competitive strategy. Environmental analysis is concerned with examining those forces not under the direct control of the organization or its industry but which can profoundly influence the industry and organizations within the industry. Strategic responses are concerned with decisions and actions meant to achieve business objectives and purpose. Misdiagnosing the industry factors critical to long-term competitive success greatly raises the risk of misdirected strategy. Issue management in the pharmaceutical industry demand that companies should have effective systems in place to counter unpredictable events that can sustain their operations and minimize the risks involved. Cosmos Ltd is one of the largest pharmaceutical manufacturing companies in Kenya and in the region. Its products are used across the region. The objectives of this study were: to identify the challenges posed to Cosmos Ltd by the changing external environment in the pharmaceutical industry in Kenya: to determine the strategies adopted by Cosmos Ltd to meet the changes of the changing environment. Business firms are in a constant two way interaction with the environment. They receive an assortment of resources from the environment and after a transformation, deliver them back to the environment in the form of goods and services. The research design adopted is a case study. The primary purpose of a case study was to determine factors and relationships among the factors that have resulted in the behavior under study. An interview guide with open-ended questions was used to collect in depth information from the senior management staff in the firm. The data collected using interview guides which is qualitative in nature, was analyzed using conceptual content analysis which is the best suited method of analysis. The company used sales people to sell the drugs to the doctors. The company used the retails chemists and different hospitals whereby the doctor would prescribe what is price friendly with the high class segment. The effect of the company focusing more on the sales force than on any other promotional method was the firm incurred less cost. The study concludes that Cosmos Ltd used sales people to sell the drugs to the doctors. The company came up with products of different economic classes of people thus was able to serve it clients in the best way thus increasing the sales as it improved everyone. The study deduced that Cosmos Ltd devised ways to market each set of segment. Cosmos Ltd increased its investment in research and development. It had expanded the market so as to reach the global market. The study recommends Cosmos Ltd to use sales people to sell the drugs to the doctors. The firm need to partner with as many hospitals as possible both private and public hospitals to be able to provide a wide range of medical services. The firm needs to adopt supply chain management strategies and vigorous advertising in response to the changing environment. Cosmos Ltd increased its investment in research and development.