Oriola-KD Steps Up Growth Plans in Swedish Pharmaceutical Market

The Swedish state owned pharmacy monopoly has partly been sold and the market has opened up for competition. Capgemini was an important partner for us when analyzing the coming market situation and laying the strategic groundwork. This work has been crucial for us in order to acquire and make over the pharmacies, and find our position in the new market place. Cecilia Marlow, CEO Kronans Droghandel

The Situation

The Swedish pharmacy market was deregulated in 2009, breaking down the government operated monopoly, and enabling new companies to enter the market. Aimed at garnering a major share of the potential market, Oriola-KD, a leading pharmaceutical company, assigned Capgemini Consulting to help them build a new retail organization and enable the company equip itself with necessary capabilities before the deregulation comes into effect. The goal was to acquire a cluster of former state-owned pharmacies, convert them into a new format. The company also wanted to establish new pharmacies, both as own operations and in partnership with a leading hyper and supermarket retailer.

The Solution

Capgemini Consulting worked together with Oriola-KD to form a retail strategy and business case, including alternative go-to-market plans and a partnership strategy. Strategic market positioning for implementing a “best-in-class” service positioning was developed and an analysis of the future pharmacy market and its customers was conducted.

The Result

Capgemini Consulting worked on an organizational design for the company’s headquarter functions, regional sales organizations and a new role set-up in pharmacies to improve efficiency and cost structure. During the transformation program, Capgemini Consulting supported format development, marketing, finance and accounting, organization design and HR, sales and suppy chain management as well as organization ramp-up.