Biotechnology in Southeast Asia: Current Capabilities, Future Opportunities
What do Boston, San Francisco, and Ho Chi Minh City have in common?
Each city houses biotechnology resources that help fuel regional and global economic growth. However, several trends make Southeast Asia particularly attractive when it comes to biotechnology. Biotech players generally agree that few blockbuster drugs remain to be discovered. Companies thus face increasing pressure to reduce costs incurred in the development of cures, a trend favoring newly emerging low-cost development hubs. What is more, Asian countries are increasing their expenditure on health care, thus opening up new and large markets for these biotech players.
Paving the Way
India’s poorly developed infrastructure is a major factor limiting its economic expansion. The country’s roads are a particular source of concern, given the important role they play in transporting people and products. While public-private partnerships (PPPs), strongly encouraged by India’s government, represent a promising solution to the infrastructure challenge, the number of such arrangements has declined recently.
Why? The answer is multi-faceted, including weaker-than-expected revenue recovery, financing-related problems, and insufficient government capacity. Overcoming these obstacles will be crucial if India is to put its roadway development plans back on track.
China and Clean Coal
With the world’s second-largest economy and an average growth rate of 10 percent over the past decade, China is no longer just emerging – it’s become an influential world power. But the nation’s exploding population and rapid advancement has made China the world’s second-largest energy consumer, and the second-largest producer of carbon dioxide emissions. The need for a reliable, affordable energy source that accounts for environmental concerns has led the country to focus on clean coal technologies.
Turkey’s Entrance into the European Union
Turkey, physically part of both Europe and Asia, has also straddled Western and Eastern cultures, values, and interests for centuries; and it has been in talks for several years with the EU regarding accession to the region. But to join the EU, Turkey must fulfill requirements including those related to human rights, economic reforms, and the organization of its military. Given Turkey’s status as a secularized Muslim country, along with its enviable geographic position including transit routes among several continents, its accession to the EU has broad, multi-dimensional international implications.
Selling Sedans in Southeast Asia
Passenger automobile manufacturers with high growth potential are increasingly difficult to find around the world. Exceptions are Singapore and Vietnam, both of which have few car owners and optimistic economic growth projections. However, these countries’ stiff government regulations, including high taxes that grossly inflate car prices, have created major challenges for automakers. This paper is a synopsis of research conducted as part of Kellogg’s Global Initiatives in Management program into the impact of Singapore and Vietnam’s regulatory environments on the four key elements of marketing cars: product, price, promotion, and place.
Market Landscape and Best Practices for Biopharmaceutical Players in China
“What’s your China strategy?” is a query heard in most sectors of the economy, and biotech is no exception. This paper looks into the strategies biopharmaceutical firms should take in approaching the China market, focusing particular attention on the role of government regulation and intellectual property protection. Specific strategies examined by the research include filing patent applications in China, using Chinese contract research organizations to achieve cost savings in research and development, conducting portions of clinical trials in China, and licensing products to firms with an established domestic sales force.
Made in China, Eaten Everywhere
Problems with Chinese-manufactured food have gained international notoriety over the last decade. As Chinese firms have claimed a larger share of the global food market, food safety problems have garnered increasing international attention as unsafe products have resulted in illness, death, and mistrust. However, lower costs and the need for supply chain diversification have made the creation of a “China strategy” a competitive necessity for multinational food companies. How can these firms reduce the risk of Chinese-made food?
The Sun and the Subcontinent
With India’s rapid economic development has come a massive increase in energy demand, posing extraordinary environmental and national security challenges. At present, India’s heavy reliance on coal condemns the country to pollution rates that grow at the torrid rate of the economy as a whole. To ensure a healthy and secure future, India must find and exploit alternative domestic sources of energy. For answers, many are looking to the sun: solar power. Despite solar’s promise, myriad obstacles remain, including finding financing and overcoming land use issues.
Winds of Change
With a population 1.3 billion strong and annual GDP growth averaging nearly 10% since 1980, China’s expanding economy drives the need for a fast-growing domestic energy supply. With the world’s largest coal reserves, China’s national energy needs have historically been met by fossil fuels; in fact, the country builds, on average, one new coal-fired plant every week. Consequently, China recently overtook the U.S. as the world’s largest greenhouse gas emitter, accounting for 24% of global emissions. Due to the sheer size of its economy and its continued growth prospects, China’s forecasted incremental energy demand dwarfs that of other countries, accounting for 38% of projected incremental worldwide energy demand through 2030. Thus, a solution to the world’s climate crisis cannot be reached without leadership from China.
The Reality of the “China Dream”
If I could sell just one [insert product here] to every person in China . . .”
So begins the “China dream” of many a marketing executive. And there’s good reason to pursue this vision: China’s “consumer class” of 100 million is expected to grow to over 700 million by 2020. So winning in China today is more of a strategic imperative than a distant dream. But in reality only three multinational companies (MNCs) have literally fulfilled the China dream: Coca-Cola, PepsiCo, and Wahaha (Groupe Danone SA).
Managing Human Capital in China's Luxury Hotels
Since China opened its borders to the outside world in 1978, millions have flocked there to see sites including the Great Wall, Beijing’s Forbidden City, and the Yangtze River. And the Beijing-based 2008 Olympics only intensified tourists’ desire to see more of China. But with this growth in tourism have come significant challenges for China’s luxury hotels, especially in the domain of human resources.
The Market for Organic Foods in China
Recent concerns about food safety, motivated largely by international scares related to pet food, frozen foods, and milk emerging from China, have primed the domestic organic food market for growth. Despite China’s long tradition of agriculture and the worldwide popularity of its cuisine, organic foods remain a small market there. Among the challenges identified in the study, the most prominent were dilution of brands by counterfeits, certification barriers posed by the bureaucracy, and a lack of consumer education. Recommendations for overcoming these challenges are also presented.
Dealing with the Localization Trend
Given China’s recent economic growth, it’s no surprise that the country’s venture capital and private equity sectors have boomed. However, recent trends point to the Chinese government’s increased caution regarding foreign investors, in part to encourage domestic investors and grow local capital markets. Recent regulatory changes and initiatives, along with the formation of government-backed sovereign and industrial development funds, have driven a strong localization trend requiring foreign investors to act strategically to compete with local players.
A Prescription to Kill
Chinese and multinational drug manufacturers alike are enjoying the benefits of population growth, with double-digit increases in annual revenues. But there is a dark side: China is already the world’s largest producer of counterfeit drugs, with such products—including ingredients benign as baking soda or harmful as rat poison—accounting for 63% of the country’s pharmaceutical market. Counterfeit drug-making is a problem escalating on multiple fronts: from developing countries like Africa to the most developed, including the United States, where an estimated 5 to7 percent of drugs sold have been tampered with.
BOP and the Bottom Line
375 million. That’s how many people live below the poverty line in India, the most of any nation. That’s also a full 35% of the population. And that’s an attractive segment to target for boosting the bottom lines of healthcare firms.
Crouching Cartier, Hidden Ferragamo
If the phrase “Chinese retail market” brings to mind plastic toys made for pennies and cut-rate electronics, think again. Long before China’s surge of buying power and openness to Western retail brands and channels since the 1990s, the country was creating high demand for luxury goods, with Shanghai known as the “Paris of the East” in the 1920s.
David vs. Goliath in the Far East
China’s purchasing power parity is rising even faster, potentially passing the US’s by 2011. These forecasts make clear that China’s banking and financial systems will grow in leaps and bounds. And such growth, while beneficial in many regards, always comes with new dynamics and challenges for the players involved.
Hurray for Bollywood
Releasing over eight hundred movies annually, the Indian film industry (“Bollywood”) is as colorful and dynamic as the products it puts out, with its films popular in India and globally. But individual Bollywood producers and studios often fail to receive their fair shares of revenues from international distribution. This is due largely to unfair distribution deals and the content-owners’ inability to overcome specific challenges related to international markets. Specifically, international distributors wield power over a fragmented producer base, limiting competition and lowering prices, and Bollywood players often lack insights into the distribution process, hampering their ability to negotiate better deals.
The Green Building Movement in Japan
Conditions in Japan are ripe for widespread adoption of sustainable building practices, a key element in a comprehensive response to environmental degradation. For this to occur, however, Japan’s government must take a leading role.
Green Tea and Greenhouse Gases
China’s unprecedented recent economic growth has resulted in significant environmental damage: greenhouse gas emissions are expected to surpass those of the US by 2010; China has 8 of the 10 most polluted cities globally; air pollution is estimated to contribute to over 1.5 million years of life lost annually in the country.
Wake Up and Smell the Coffee
You still cannot get a Starbucks venti latte in Vietnam. Despite rumors of the possibility, the coffee giant has not yet entered the South Asian country. That is good news for local Vietnamese coffee retailers including Trang Nguyen, Highlands Coffee, and S-Café. But can these local Davids withstand the entry of a Goliath like Starbucks?
Googling for Yuan
Just as merchants viewed the port of Shanghai as a gateway to China’s enormous market potential in the 19th century, online firms see search engines as a clear entrée to a rapidly growing digital population, with emerging economies like China holding the greatest opportunity. So it’s no surprise that competition among online search firms to dominate the Chinese market is only getting hotter.