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Case Study:
Glenmark is an Indian-based multinational pharmaceutical company with approximately $30billion in sales annually. In the 2021 Annual Report, the Indian company indicated $5.94 billiondedicated to research and development (R&D). Moreover, the pharmaceutical company spent$10.19 billion in marketing and sales in 2021. R&D and marketing expenses represent a largeportion of their total fixed costs with more than $16 billion! With this amount injected, Glenmarkcreates a barrier to entry for other firms that are considering whether to enter the pharmaceuticalmarket or not.It is only by going global through a large distribution network will Glenmark be able to benefitfrom economies of scale. By going global, Glenmark will target more customers and spread theirfixed costs better. This also explains why multinational company has such high marketing costs.Minimum 500 Words.)
1. Explain whether the capital expenditures by the company is justified and be able to increase market share in future?
2. Are there any suggestions you would like to give to make its fixed costs better?(Minimum 500 Words.)
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