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Table of Contents Problem Statement 3 Situational Analysis 3 External Analysis 3 Market Analysis 3 Customer Analysis 5 Competitor Analysis 5 Environment Analysis 6 Internal Analysis 7 Performance Analysis 7 Determinants of Strategic Options 8 Alternative Analysis 8 Recommendation 9 Appendix 10 Problem Statement In 1989, Burroughs Wellcome sold the only effective AIDS-treatment drug, Retrovir. Having already lowered the cost of the drug twice, the company is continuing to face public criticism of its pricing, and now faces the potential of competitors in the near future. Should Burroughs Wellcome consider lowering the price of Retrovir further? If so, by how much, and in what timeframe? Situational Analysis External Analysis: Market Analysis Size and Growth Prospects: The pharmaceutical industry is a very competitive market. Burroughs Wellcome is an American subsidiary of an English public limited company named Wellcome PLC. It is a multinational firm with operations in 18 countries. The U.S is the company's largest market. From 1985 to 1989 Wellcome PLC has continued to increase their sales growth in the...

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