Ciba Vision Group Financial Problems

CIBA Vision Group

Financial Problems

CIBAVISION: financial problems

Trim down to move quickly and easily

The purpose of corporate mergers is usually defined as using the generation of synergy between like-minded operations to reduce overhead costs. However, although CIBA Vision is supposed to be the 'contact lens' component of the newly-created Alcon conglomerate, there is currently a great deal of 'cross-over' between the two entities, in terms of the resources they consume. For example, both Alcon and CIBA Vision produce contact lens cleaning products. Alcon's produces OPTI-FREE® lens care brand cleansers; CIBA produces Clear Care® Cleaning and Disinfecting Solution (Alcon products, 2011, Alcon Official Website). Yet there has been no merger thus far of these operations, which needs to occur.

Both companies also divert a substantial portion of their resources to research and development, creating additional overlap. The solution is to consolidate all of Alcon's contact lens-specific eye care products with that of CIBA Vision's and to integrate CIBA's R&D with the larger, merged Alcon R&D facility.

Problem #2: Look at the business from different angles

Alcon has facilities in 75 locations all over the world and a product presence in 180 nations, although it began as a Texas-based company. The current merger provides the opportunity for the company to engage in 'out of the box' thinking and to combine the best aspects of all merged entities into its skill set. CIBA Vision has shown itself to be particularly strong in the field of R&D. It is one of the leading entities in producing new types of contact lenses that have now become ubiquitous, such as more breathable contacts, daily disposables, and contacts to correct specific vision conditions. At the time of the merger, CIBA was pioneering research designed to tailor eye care products specifically to the needs of Asian eyes. 'Customized' medicine is one of the growing trends of the 21st century, given the increased knowledge of how genetics can impact individual human health. The explosion of a middle-class and upwardly mobile Asian population is also reflected in CIBA's choice of focus (R&D, 2011, CIBA Official Website).

Alcon must learn from such innovative stands, and incorporate these ideas into its own medical offerings in its surgical, pharmaceutical, and vision care products. By bringing the R&D components of all satellite organizations into one entity, it will be able to make use of some of the innovative thinking present at CIBA. However, it must be careful to ensure that this is genuinely a learning effort, and ensure that Alcon does not stifle the values that made CIBA so strong since its founding in the 1980s.

Problem #3: Mix insider insight with outside observation