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If Value Chain analysis is so important, then why is it so few companies truly try to employ it in their day-to-day work?

Of course, there are a variety of

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

reasons, but one reason may be the very general nature of the Value Chain charts that Porter uses. To be valuable across a wide variety of industries, Porte

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

Examples of combination products may in

r constructed a diagram of his Value Chain that is very flexible. There are five “primary activities” and four “support activities”. This broad view of the

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

elements of a Value Chain allows many different industries to use the Value Chain tool to determine where they do, indeed, add value for their customer.

If

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

you are a B-B marketer, the Value Chain diagram you use for your company can match up nicely with the Value Chain diagram of your customer. Since both a

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

Combination pro

re businesses, each will have very similar structures and each will incorporate elements of the primary and support activities. Likewise, if you are mar

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

keting to a distributor who in turn markets to end users, as Competitive Advantage illustrates, then the classic Porter value chain can be matched up,

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

company to company.

However it becomes a tad more of a challenge when a B-C marketer attempts to use Value Chain analysis to map out where her Company Valu

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

e Chain intersects with the Consumer Value Chain. Where exactly does the consumer HR department start? What about the consumer technology departmen

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

t? Does it start with Dad figuring out a better way to cut the grass, or with Mom determining a more efficient method to manage the family budget? (Wait, t

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

hat may be part of procurement…)

It actually becomes very difficult to map out one-to-one relationships between a company and a consumer using all nine of t

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

Following aspects would a

he various activities in the consumer household. The nine activities in the business diagram of the value chain don’t match up well at all to how we think o

dd to the challenges in developing combination products:

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

f the consumer household.

Part of the problem: humans are much more complex than organizations.

Fortunately Porter gives us a clue of how to proceed when h

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

e instructs us to rank the actual use of our product in the customer’s life. In Competitive Advantage figures 4-4, 4-5 and 4-6 he offers usefu

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

l diagrams of how we can rank both signaling and use criteria, measure the value of each and then, once we’ve done that, match up the activities within our f

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

irm that impact the way the buyer uses our product and how the buyer feels about it.

But isn’t there a Value Chain diagram we can create for the customer?

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

Professional from academic institutions, pharmaceutical industries, health care indust

Beyond ranking criteria and attempting to measure it, why can’t we invent a separate graph or drawing to help us easily visualize where our company fits in w

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

ith the end-user?

Possibly so, but it won’t be one-size fits all for all companies. There may be a way to create industry-specific or product-specific cons

.

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

umer diagrams of value chains. And, if you are a marketer looking to construct a custom-built consumer value chain for your industry, a great first place to

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

Companies that provide selfless information through particip

start is with feedback from your top salesperson.

But there is another place to start in building a consumer value chain: Maslow and the hierarchy of needs

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

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