Chapter 12 New Ventures And Corporate Renewal

     These two definitions can definitely be confused with each other.  A new venture is the creation of a new business from scratch; where corporate renewal is the outcome of successful strategic change in the context of an established business. At one point every company had to start out as a new venture and Merck is no exception.

     The first step in any new venture is finding that niche in the market that has not been explored yet or needs redefining.  So for a company like Merck and a lot of their profits being in the pharmaceutical side they would want to design a new drug or redesign an old one to keep profits high. So, of course getting those inital investments to research a new drug are never a problem because of the profits Merck pulls in.  Once the clinical studies are done and all the testing is complete which can take years the profits will start to roll in.  Some of best ventures that Merck has done are Singuliar, profits around $10.4 billion, Januvia, profits around $7 billion, and Coppertone, profits near $3 billion.

Source

Profits