Using Osterwalder's Business Model Canvas, construct the business model used by your chosen company. What role does innovation play in your company's business model? How can innovation be improved in your company?

A CED's dilemma consumers) and payers (governments or insurance compa n April 2015, Olivier Brandicourt started work as CEO of nies) had Wittle knowledge or influence. Consequently. french pharmaceutical and vaccine giant Sanofi, after a medical practitioners were insensitive to price but suscep profit warning and the abrupt departure of his prede- tible to the efforts of sales representatives, cessor Chris Viehbacher had sent the share price Two important developments occurred in the 1970s. fumbling the previous October. Viehbacher had revital- First, the thalidomide tragedy (an anti-emetic for sed Sanofi's R&D. notably through the acquisition of morning sickness that caused birth defects) led to Genzyme in 2011, but fallen foul of the largely French much tighter regulatory controls on clinical trials. board by reportedly acting without consultation, and by Second, legislation was enacted to set a fixed period on moving his domicile back to the USA. A French native patent protection - typically 20 years. On patent with a strong track record at Bayer and Pfizer, expiry, rivals could launch generic medicines with Brandicourt's appointment was viewed positively. Sanofi exactly the same active ingredients as the original was a top five global pharmaceutical company with brand, but at a lower price. The dramatic impact of $40bin in annual revenues. but the company faced the generic competitors is illustrated by Merck's top-selling mminent loss of patent protection on Lantus, one of the asthma and allergy drug Singulair, which lost 90 per world's biggest selling drugs, which contributed over cent of US sales just four weeks after patent expiry in $8bin' to sales. Sanofi had also disclosed that sales in 2012 Generics had a major impact on the industry, the core diabetes franchise would be held flat by strong driving innovation and a race to market, since the time pricing pressure in the USA. An analyst commented that during which RAD costs could be recouped was drasti- the organisation is just moving too slowly and is not cally curtailed. The pharmaceutical industry is unusual since in many innovative enough." It was clear that Brandicourt needed to act swiftly, but how? countries it is subject to a 'monopsony" - there is effect tively only one powerful purchaser, the government. From the 1980s on, governments focused on pharmaceuticals industry evolution as a politically easy target in efforts to control rising healthcare expenditure. Many introduced price or reim- As described in Box 1, the pharmaceutical industry is bursement controls. The industry lacked the public or characterised by a highly risky and lengthy research and political support to resist these changes, development (RSD) process, intense competition for intellectual property, stringent government regulation and powerful purchaser pressures. How has this unusual Business environment picture come about! Apting populations create pressure on healthcare The origins of the modern pharmaceutical industry Systems, since 'over-65s' consume four times as much late from the late nineteenth century, when dyestuffs healthcare per head as younger people. Combined with were found to have antiseptic properties. Penicillin was a an epidemic of chronic disease linked to obesity, this major discovery, and R&D became firmly established created an unsustainable situation, further exacerbated within the sector. The market developed some unusual by the global financial crises. hafacteristics. Decision-making was in the hands of In response to these pressures, government and medical practitioners whereas patients (the final private payers (such as insurance companies) use a