Revealing Integrated Product and Geographical Diversification Trajectories in Multinational Pharmaceutical Enterprises

Multinational Enterprises (MNEs) periodically decide on both which products to launch (or phase out) and in global regions, thereby conducting an integrated products-countries consideration diversification strategies. Over time, these decisions can have a cumulative impact the structure. Diversification literature has primarily focused one of two metrics rather than providing view; this work investigates metrics. Considering deal-making as execution instrument strategies, comparison historic deals MNEs with their current structure offers insights into nature strategies that were pursued. For most active pharmaceutical firms, we derive normalized deal diversity profile terms past product-countries’ preferences compare them operations subsidiaries. We rationalize MNE behaviors means shed, acquire consolidate businesses enable market leadership aspirations. The analysis reveals trajectories been actively favored deals: directed at niche offered globally, selected countries. former is characterized by high number countries, whereas latter identifiably different product concentration levels. In contrast, widely diverse disfavored deals. Understanding such directions pace aid global- or group-level strategy formulation, monitoring execution, interpreting competitor moves designing regional policies.