The role of brand equity on mergers and acquisition in the pharmaceutical industry When do firms learn from their merger and acquisition experience?

The role of brand equity on mergers and acquisition in the pharmaceutical industry When do firms... Purpose – The purpose of this paper is to describe the role of brand equity on mergers and acquisition (M&A) in the pharmaceutical sector; also to emphasize the various strategies and the benefits incurred in the arena of M&A in this sector. Design/methodology/approach – The author studies two major mergers in recent years, i.e. the Daiichi‐Ranbaxy and the Pfizer‐Wyeth deals. Brand equities were calculated. This study applied the “RKS” model developed by the author and Inter‐brand model for calculation of brand equity. The results obtained after the application of the two models were analysed for financial‐based decisions. Findings – The study captures the perceived importance of brand equity factors to M&A decision making. Although this strategy carries a high price tag, it offers quick returns, including access to new markets or a stronger position in current markets. A study on the recent acquisition and mergers in the pharmaceutical industry indicates that there is consolidation in medical devices, generic and consumer health segments of the healthcare industry. Originality/value – The paper studies two recent mergers which indicate that often these decisions are based on emotion rather than rationality. Therefore, it is suggested that managers should be more rational while taking decisions on mergers or acquisition. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Strategy and Management Emerald Publishing

The role of brand equity on mergers and acquisition in the pharmaceutical industry When do firms learn from their merger and acquisition experience?

Journal of Strategy and Management, Volume 5 (3): 18 – Aug 3, 2012

Loading next page...
 
/lp/emerald-publishing/the-role-of-brand-equity-on-mergers-and-acquisition-in-the-b00kOqZCTz
Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1755-425X
DOI
10.1108/17554251211247571
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to describe the role of brand equity on mergers and acquisition (M&A) in the pharmaceutical sector; also to emphasize the various strategies and the benefits incurred in the arena of M&A in this sector. Design/methodology/approach – The author studies two major mergers in recent years, i.e. the Daiichi‐Ranbaxy and the Pfizer‐Wyeth deals. Brand equities were calculated. This study applied the “RKS” model developed by the author and Inter‐brand model for calculation of brand equity. The results obtained after the application of the two models were analysed for financial‐based decisions. Findings – The study captures the perceived importance of brand equity factors to M&A decision making. Although this strategy carries a high price tag, it offers quick returns, including access to new markets or a stronger position in current markets. A study on the recent acquisition and mergers in the pharmaceutical industry indicates that there is consolidation in medical devices, generic and consumer health segments of the healthcare industry. Originality/value – The paper studies two recent mergers which indicate that often these decisions are based on emotion rather than rationality. Therefore, it is suggested that managers should be more rational while taking decisions on mergers or acquisition.

Journal

Journal of Strategy and ManagementEmerald Publishing

Published: Aug 3, 2012

Keywords: Pharmaceuticals industry; Brand equity; Acquisitions and mergers; RKS model; Interbrand model

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off