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Digg It - The Best Defensive Strategy is the Courage to Attack Yourself
Because of its leadership position, the defender owns a strong point in the mind of the prospect. The best way to improve your position is by consta 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 ntly attacking it. In other words, you strengthen your position by introducing new products or services that obsolete your existing ones. IBM is a ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in master of the game. Every so often, IBM introduces a new line of mainframe computers with significant price/performance advantages over existing pro lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. ucts. Competition continually struggles trying to catch up. A moving target is harder to hit than a stationary one. Gillette is another example. G here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe illette owned the wet-shaving market with a product called the Blue Blade and subsequently the Super Blue Blade. The company was stunned when rival d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro Wilkinson Sword beat it to the market in the early sixties with the stainless blade. Then in 1970 Wilkinson Sword followed with the bonded blade, a 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 metal blade fused to plastic at the “optimum shaving angle.” At that point Gillette got its act together and started to play a brilliant game of def 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 nsive warfare. Shortly thereafter Gillette counterattacked with Trac II, the world’s first double-bladed razor. The success of Trac II set the patt nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically ern for future Gillette strategy. “Two blades are better than one,” said Gillette’s advertising. “Better than one Super Blue Blade,” said the compa 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 y’s customer who promptly bought the new product instead of the old. (It’s better to take business away from yourself than have someone else do it f ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi or you.) Six years later, the company introduced Atra, the first adjustable double-bladed razor. Again, by implication the new product was better t ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a han the Trac II, the nonadjustable two-bladed razor. Nor did Gillette hesitate to introduce Good News, an inexpensive disposable razor (with two bl dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod des, no less). This was an obvious attack against Bic, who was preparing to introduce its own disposable razor. Good News was not good news for Gil cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin lette stockholders. The disposable cost more to make and sold for less than Gillette’s refillable cost more to make and sold for less than an Atra o tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen Trac II was costing Gillette money. But Good News was good marketing strategy. It blocked Bic from running away with the disposable portion of the 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 market. Furthermore, Bic paid dearly for its modest share. Trade sources say Bic lost $25 million in its first 3 years in the disposable razor busi ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust ess. Gillette continues its relentless strategy of attacking itself. Recently it introduced Pivot, the first adjustable disposable. This time, its y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products own Good News product is the target. Gillette has gradually increased its share of the wet-shaving market. Today it has some 65 percent of the busi . 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 ess. Attacking yourself may sacrifice short-term profits, but it has one fundamental benefit. It protects market share, the ultimate weapon in any elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip marketing battle. The reverse is also true. Any company that hesitates to attack itself usually loses market share and ultimately market leadership 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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