The decisions that the companies make are affected by the problem of resource scarcity. With many opportunities but limited resources, the companies should know what is the best to invest their cash in. Always, there is the question of how and where to invest the cash, it is a real challenge for those who are responsible for allocating the resources. Pharmaceutical companies may have 10, 30 or 100 products should be managed. These products differ in potential growth, competitive environment, and performance. The decision is very hard to choose which products that the company should invest. The BCG matrix or GE compare the products and divide them to the groups that are worth investing in or the groups that should be harvested or divested. The purpose of these …show more content…
Generally, people do not like change because it is painful and difficult. Some people may be more apt to adopt a new idea, behavior, or product than others. There are different characteristics between people who adopt an innovation early and people who adopt an innovation later. Understanding the characteristics of the target population is very important When promotes an innovation that will help adoption of the innovation. Similarly, pharmacy field is evolving. Some Physicians can adopt a new drugs early than others. There are five established adopter categories :
1.Innovators - The physicians who like to be the first to try any new drugs, medical devices, new idea. They are willing to take risk, and develop new ideas. They represent 2.5% of physicians .
2.Early Adopters - The Key opinion leaders(KOL) fall under this category. They can take decision or influence the other physicians. They are already aware of the importance of change.They like to experience new ideas by themselves and they do not need information to convince them.They represent
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
From integrating technology in education to introducing technological innovation in agriculture, users acceptance presents a complex set of challenges to innovation diffusion. According to Everett Rogers, one reason why there is so much interest in the diffusion of innovations is because "getting a new idea adopted, even when it has obvious advantages, is very difficult" (Rogers, 1995, p. 1).
Diffusion of Innovation (DOI) Theory has been used successfully in many fields including communication, agriculture, public health, criminal justice, social work, marketing, and nursing (Boston University of Public Health, 2013; Doyle, Garrett & Currie, 2013 ). There are five adopter categories: (1) innovators who want to be the first to try the innovation and counts for 2.5% of a specific population, (2) early Adopters who represent opinion leaders and counts for 13.5%, (3) early majority who are rarely leaders, but they do adopt new ideas before the average person and counts for 34%, (4) late majority who are skeptical of change, and will only adopt an innovation after it has been tried by the majority and counts for 34%, and (5) laggards who are bound by tradition and very conservative, and counts for 16%. The stages of innovation adoption include awareness of the need for an innovation, decision to adopt (or reject) the innovation, initial use of the innovation to test it, and continued use of the innovation. There are five main factors that influence adoption of an innovation: (1) advan...
Why do consumers purchase specific drugs for various ailments, sicknesses or diseases they might have? Why do physicians prescribe certain drugs over competitive drugs that may be available to the public? Why is it that most of us can easily name specific drugs that fit the many ailments of today’s society? On the surface the answer might be as simple as good TV advertising or radio commercials or even internet adds. The truth of matter is the major pharmaceutical manufacturers own the patents on these drugs and this gives them all of the marketing budget and muscle they need to promote the drug and control the pricing. The incentives for larger pharmaceutical companies are very enticing and as a result, they don’t mind spending the time in clinical trials and patent courts to get their drugs approved. Some will even get patents on the process by which the drug is manufactured, ensuring that no competitor can steal the drug or the process. This protects their large financial investment and nearly guarantees a large return for their investors. Many consumer rights groups claim this is nothing more than legalizing monopolies for the biggest manufacturers.
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
Change is rarely seen as blasé no matter what aspect of life is being modified. In Healthcare,
In recent years’ health reform has been a driving force in the United States political system. If you watch the news you will undoughtabley hear how citizens, the government, or the economy is or might be effected by some sort of change in medical regulation. One of these hot topic issues is the cost of prescription drugs. Every major drug market besides the United States regulates the price of drugs in some way (Abbott and Vernon). By the United states not doing so many believes it opens consumers up to be exploited by large pharmaceuticals companies. Other believe regulating drug prices limits investment, innovation, and competition in the pharmaceutical industry. In many ways both views are correct yet the later may have more long term lasting
Appropriately, this motion picture correctly illustrates the amount of work, time, and money that actually goes into developing a medical innovation. In addition, this movie acts as a solid example of the grueling path one must take for permission in releasing a medical innovation to the public. Writing for the journal The Scientist, Jef Akst stated that the film acted as a good depiction of the “hard to swallow fiscal issues of drug development” (thescientist). However, this painfully hard process exists for good reasons; they must weed out the ideas that can not be safely practiced in modern society. Also, the regulations ensure that each innovation, whether drug, therapy, or procedure, will benefit the consumer more than the side effects could harm them. Moreover, the benefits of the innovations, as previously mentioned, must outweigh the costs for the patient and practicer for maximum
A physician is defined as a person qualified to practice medicine which I realize is a very broad definition, but it’s history is very rich. The practice of being a physician can be traced back to ancient civilizations. The first recorded physician was Hippocrates of Ancient Greek who lived two thousand and five hundred years ago, but some of his methods still affect modern practices. Later, other great civilizations followed suit in developing medical theories from diagnosis to treatments. Sadly the Middle Ages saw little to none new theories or interest in physician practices, but a renewed interest during the renaissance created many needed discoveries for vaccines, treatment, and diagnosis techniques. Human knowledge is ever increasing in todays modern world bringing major breakthroughs in areas that have plagued humans. ("Physicians.")
It is a management tool that serves four distinct purposes (McDonald 2003; Kotler 2003; Cipher 2006): it can be used to classify product portfolio in four business types based on four graphic labels including Stars, Cash Cows, Question Marks and Dogs; it can be used to determine what priorities should be given in the product portfolio of a company; to classify an organisation’s product portfolio according to their cash usage and generation; and offers management available strategies to tackle various product lines. Consider companies like Apple Computer, General Electric, Unilever, Siemens, Centrica and many more, engaging in diversified product lines. The BCG model therefore becomes an invaluable analytical tool to evaluate an organisation’s diversified product lines as later seen in the ensuing sections.
...deal with many different factors that impact supply and demand. Through the individual choices that each patient and each doctor make a practice can thrive or fall short of success.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Pharmaceutical patents are patents for inventions within the pharmaceutical industry. Patents give exclusive rights for an invention for a product or a process of making a product [1]. There are many aspects to patents in the pharmaceutical industry that are both pros and cons; it just depends on what industry you are in. Pharmaceutical companies take out patents so they can regulate the market and restrict competition from other companies. By obtaining patents pharmaceutical companies also attract investment. In addition to this pharmaceutical companies can also regulate the price of the drug as they will be the only company selling that drug. However these aspects of patents can adversely affect the generics industry. The generics industry cannot make or sell drugs that are patented but once a patent licence expires, both the generics industry and the WHO see increased benefits as drugs become more widely available around the world (i.e. developing countries) at a lower price. Here we will discuss the pros and cons of patents from the point of view of the pharmaceutical industry, generics industry and the WHO.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.