In 2003, 3M initiated contact with Yunnan Baiyao Group Co, Ltd, to discuss the potential for cooperation in the field of transdermal drugs. Yunnan Baiyao (YB), a household brand in China with its unique traditional herbal medicines. In recent years the company has been involved in a series of corporate reforms and product / market diversification strategies to respond to changes in the Chinese pharmaceutical industry and competition at the global level. By 2003, there were YB vertically integrated product diversified group of companies with the ambition to become an international player. The proposed cooperation with 3M was attractive to YB, and not just as an opportunity for internal diversification of the product, but also for international diversification. YB have been attempts to internationalize their products and overseas department was created in 2002 specifically for this purpose. On the other hand, YB is also considering another option, namely, whether to extend its brand toothpaste and other health care products. YB had to make decisions about which of these two options to pursue and whether it was possible to carry out. "Hide
by Paul Beamish, George Peng Source: Richard Ivey School of Business Foundation 17 pages. Publication Date: January 23, 2007. Prod. #: 906M88-PDF-ENG
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