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Main Subject - How Business Davids Can Overcome Goliaths
In the story of David and Goliath, young David challenged the mighty Goliath. King Saul wanted David to wear his armour so that he could fight Goliath in the traditional way. But David chose to forgo the armour, used a weapon of his choosing, and relied on his own speed, and was ultimately successful in slaying
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
the giant Goliath.
Small business owners viewing the Goliaths of their industry slugging it out using all the marketing weaponry in their well stocked armoury, can be daunted by the battles raging around them. And if they choose to fight them with the same weapons, they have much to fear. For large businesses,
Small business owners viewing the Goliaths of their industry slugging it out using all the marketing weaponry in their well stocked armoury, can be daunted by the battles raging around them. And if they choose to fight them with the same weapons, they have much to fear. For large businesses,
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
conomies of scale is their most potent weapon. A very powerful weapon. But like Goliath, their strengths are also their weaknesses.
Relationships
The biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small busi
Relationships
The biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small busi
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ess, this means that relationships are the key. It is the flexibility to do the little bit extra without having to go back to head office for approval. It is the continuity of the relationship between a business and its customer, and the ability to customise its service.
Using the banks as an example, we have s
Using the banks as an example, we have s
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
en a number of smaller banks flourish because of the relationships they have had with their customers. The response from the big banks was to acquire the smaller banks (and their customers). However, the efficiencies that the large businesses gain with their economies of scale create a negative impact on individ
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
al relationships with their customers. While local staff do their best to nurture their relationships, their authority is limited, and they do not stay as long as staff do in a small business. In the end, all their customer relationships, except with their very largest clients, become transactional. While comput
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
r systems can help ‘personalise’ these relationships, it is a relationship with a system rather than a person. When mistakes happen- and they are inevitable in all systems created by humans, they tend to be very difficult to rectify as any human relationship can be spread over many individuals. And it is impossi
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
ble to talk to the boss to sort things out.
One Size Fits All
As Goliaths depend on volume, they must target as large a segment of the market as possible. Hence the need for one size to fit all. They are unable to survive in a niche as no niche is large enough to pay for the overheads. For a business David, fi
One Size Fits All
As Goliaths depend on volume, they must target as large a segment of the market as possible. Hence the need for one size to fit all. They are unable to survive in a niche as no niche is large enough to pay for the overheads. For a business David, fi
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ding the right niche and tailoring services for those customers in a way that is impossible for Goliaths, is a way to take their customers away from them.
Price
Small businesses in competition focus all too often on price, which is one of the Goliaths biggest weapons, through economies of scale. It is a mistak
Price
Small businesses in competition focus all too often on price, which is one of the Goliaths biggest weapons, through economies of scale. It is a mistak
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
to fight on Goliath’s turf. And you should be aware that price is only the fifth reason people buy. A recent survey showed the top five reasons someone buys, are:
1. Confidence that your products and services will meet their needs
2. Quality of the product and service
3. The level of service that is provided
1. Confidence that your products and services will meet their needs
2. Quality of the product and service
3. The level of service that is provided
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
4. Selection or range of offers
5. Price
Just knowing this creates a massive advantage for any business.
Market Share
Market share is something that all Goliaths focus on. They study the movements of their share, and those of their Goliath competitors. But everyone else is in a group called ‘Others’ usually
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
totalling around 10% of the market. THEY DON’T MONITOR MOVEMENTS IN THIS SECTOR. It is not important to them. This becomes another big opportunity for business Davids.
If you are a small business that has 2% of the market, and double your share to 4%, they don’t notice. You could double it again before they eve
If you are a small business that has 2% of the market, and double your share to 4%, they don’t notice. You could double it again before they eve
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
are aware what you are doing. Therefore, a small business can build up great momentum before a Goliath notices and takes retaliatory action. Goliaths can’t double their share without coming to the attention of the competition regulator. Such a feat would normally only be possible with a takeover, or failure of
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
major competitor. Goliaths can only make small gains in their markets- because they are so big, although their strategy may be to grow the market with new products and services, which is great for everybody. Or to cut costs which may have a negative impact on quality and customer relationships.
This creates hu
This creates hu
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ge advantages for business Davids. With smart marketing initiatives, they can steal market share from all their competitors without them being aware what is happening until much later. The competitive response from Goliaths will be very slow and may not occur until you get above 10%. And is likely to be around p
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
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
ice, which as you now know is only the fifth most important reason people buy from you.
Marketing Goliaths rely heavily on advertising to reach their mass market to create volume. For Davids, advertising is too often the most expensive form of marketing. Fortunately, there are much cheaper forms that bring you
Marketing Goliaths rely heavily on advertising to reach their mass market to create volume. For Davids, advertising is too often the most expensive form of marketing. Fortunately, there are much cheaper forms that bring you
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
uch closer to your customers, such as a pro-active word-of-mouth strategy. Goliaths use these as well, but as these are less effective in mass marketing, it is not their area of focus. So business Davids should choose the marketing weapons that give them an advantage.
Business Systems
The one thing that busin
Business Systems
The one thing that busin
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
sses Goliaths do very well is to systematise their operations. This provides consistent quality and helps control costs. This is one thing that small business should copy from big businesses. As most small businesses have poor business systems, it is not difficult to out-deliver your competitors of similar size,
.
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
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
just by having even a basic system in place. And you certainly need that when you are up against Goliaths.
Conclusions
Business Davids have an advantage over Goliaths in a number of key areas. They can make their service personal, and tailored for the individual. They can focus on a niche which has special nee
Conclusions
Business Davids have an advantage over Goliaths in a number of key areas. They can make their service personal, and tailored for the individual. They can focus on a niche which has special nee
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
s unserviced by Goliaths. They can more easily compete in non-price areas, and can steal market share before they are noticed. And they can choose marketing strategies that place them at an advantage over Goliaths. But they must have systems in place or else they will be unable to deliver as their business grows
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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