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What is a commodity? According to the Webster Dictionary the word commodity is defined as a a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price.

In a

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

commodity market, many companies compete and none enjoys a competitive advantage. Meaning, that each firm has equal access to such necessities as technologies, capital, clients, and labor. For example, a financial service firm that sell stock. Let’s fac

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

, all stock is the same. If I buy Microsoft (MSFT) stock from E*Trade, it that same MSFT stock that Merrill Lynch sell. Therefore, the product is the same. With that being said, how to a financial firm differentiate themselves from other financial firms?

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

Currently these firms separate themselves by selling advice, research and create mutual funds that exclusive their firm.

If you cannot maneuver your competition, because they are consistently imitating your every move, then you must either improve your ef

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

iciency by doing the job fast and/or cheaper than your competitors. You start by analyzing the relative strengths of your competitive environment:

Current Customers – Are you getting the most out of every customer? Can you earn a higher profit margin by

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ffer your clients’ upgrades to their current products/services they purchase from you? Can you give your clients more value by offering incentives such as discounts? Can you motivate your customers’ offers your services? Of, course these are only suggest

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ions and each individual business circumstances will be different.

Potential buyers- there are a number of people that need your service and don’t know it. Sometime you’ll provide a service that almost meets a whole new market requirement if you just twea

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ed it a little. Look at it this way. Either you can expand your market/number of buyer with new products or you increase your presence in your current market. Here’s how you determine which alternative is the best for you. Whatever you think will earn y

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

u the largest, most sustaining income in the least risky manner, that what you should do.

Current competitors- your current competitors are only a small piece of the competitive landscape, because the new entrants are going to continue to enter your market

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

rather you know them or like them, it doesn’t matter. You need to be cautious when developing a strategy to create a competitive advantage against new competitors, because it could back-fire. Trying to destroy or marginalize the competition is dangerous-

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

articularly if you’re competing over price. Companies that enjoy competitive advantages but that are not content with what they have can harm themselves permanently by pursuing aggressive rather than cooperative tactics. You can rarely put a well-run comp

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

any out of business through price competition. Instead of competing on price, you increase output and production capacity.

Potential competitors entering your market – as Microsoft Chairman as always said, a small startup in a garage can grow up and becom

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

one of your biggest competitors. Just look at Google-a company that’s only eight years old. The common and most proven strategy uses to combat such entrants is: increase the barriers to markets. It is a fact that when new entrants enter your market you

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

arket share deceases. In addition, with new entrants you must move carefully, because you are in a position where you have a lot to lose if you already own the market. The entrant has nothing to lose and everything to gain.

Vendor relations- All your sup

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

liers should be a part of your management or advisory team. They need to be involved in the development of new strategies and products for you. If you can get your vendors to help you operate more efficiently, you can pass the savings to your customers.

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

n addition, you want to try to tie your vendors up in first right of refusal contracts, because you at last thing you want is your competitors from receiving the same benefit form sometime you help create.

Substitutes/Complementary services – A huge opport

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

unity that normally lost in small businesses is the opportunity to partners with others to introduce substitute and complementary products. Why? Fear! In the Book, “Building Trust at the Speed of Change,” author Edward Marshall said, fear doesn’t increas

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

productivity, speed, creativity, profitability. And he is right. So deal accordingly.

The six competitive categories above are six simples way to work on your business from the inside. It is highly suggested that you outline a detailed plan that addres

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

each category and how you can improve it. Good luck and I will see you up at the top.

About Xspology.com Inc.

Xspology.com is an executive coaching firm located in Atlanta, Georgia whose service specializ

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

s in creating optimization processes and marketing strategies for entrepenuars and executives. Readers are welcome to download 10 sample strategic marketing and optimization reports at http://Xspology.com

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

A 5-step guide to simple fire risk assessment for any business owner or manager.

What do you dream about? Do you have dreams of building a blockbuster business, material wealth, taking great vacations, writing the next bestseller, or contributing to the lives of others? Whatever dreams you have big or small, staying motivated can sometimes be a challenge.

Building the business of your dreams can be a confusing matter with all the conflicting expert advice out there. All of it has value and different pieces of advice work better for some business owners than others. When all is said and done, it boils down to the three critical elements to success. When you understand them, it's magic.

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Digg It - How to Compete in a Commoditized Industry

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