Patented - Products

The market size for patented drugs as of today is very small. Only about 1-2% of the market is made up of patented drugs, which are being sold by multinational innovators.

There are multiple Indian companies that have drugs in the pipeline, with a greater focus on R&D, but estimates suggest that it would be at least 7 to 10 years before these begin to have a serious impact on the industry.

 

 

Industry experts believe that the current size of the patented drug market is estimated at US$120-130 million. Due to weak patent laws in the past, and multiple, cheap generic versions of drugs present in the market, multinational players were hesitant to introduce their patented products.


In the future, with growing affordability, deepening of health insurance and steady improvement
in Intellectual Property Rights (IPR), patented product launches should increase.

Formulation - Strategy

Evaluating the overall industry, factors to be looked at include

•  size of the market,
•  past and potential market growth,
•  competitive profitability,
•  new market entries, and
•  industry threats.

These market factors must be evaluated on a regular basis, as small changes may have a large impact on an organization’s business activities. For example, if an organization becomes aware of new technology that is on the verge of being introduced into the marketplace, then it can avoid making any new plans that would involve the older, existing technology available. Also, if an organization is
considering global expansion, then it would be beneficial to be aware of emerging markets, other areas of potential growth, and what other companies have already entered in those markets.

The Competition

An organization cannot be successful unless it has a full understanding of the other players in marketplace. A company must be able to identify the strengths and weaknesses of the competition and analyze the ways in which the competition’s products or services meet the needs of its customer base.

Strengths & Weaknesses

When developing a competitive strategy, it is vital for an organization to be fully aware of its internal strengths and how those strengths relate to the competition. These strengths should be maximized and leveraged to the company’s advantage as well as highlighted in all business and marketing activities that the company undertakes.

It is equally important for an organization to take an honest look at its areas of weakness. This is where a company can become vulnerable to outside market conditions, such as competitive gains, advances in technology, economic shifts, and other factors.

If an organization recognizes that it must constantly be aware of the business world around it and must be flexible to the changes that will inevitably occur, then it will be in a position to adapt and modify its plans to achieve maximum success.

The Industry

    When evaluating the overall industry, factors to be looked at include:

1. size of the market,
2. past and potential market growth,
3. competitive profitability,
4. new market entries,

These market factors must be evaluated on a regular basis, as small changes may have a large impact on an organization’s business activities. For example, if an organization becomes aware of new technology that is on the verge of being introduced into the marketplace, then it can avoid making any new plans that would involve the older, existing technology available. Also, if an organization is

Considering global expansion, then it would be beneficial to be aware of emerging markets, other areas of potential growth, and what other companies have already entered in those markets.

The Competition

A company must be able to identify the strengths and weaknesses of the competition and analyse the ways in which the Competition’s products or services meet the needs of its customer base. 

Has the competition created a significant product differentiation strategy? Has the Competition cornered a specific target market? Is the competition in full-scale Competition with another company? It is essential for these questions to be answered in order to develop the appropriate strategy for successful competition.

As discussed how competition for an airline is not only other airlines, but also other modes of transportation. Evaluating competition requires a company to look at organizations that provide substitutes for its product or service as well as those who provide the same products and services.

Strengths & Weaknesses

Let’s go back to the traditional, well-known marketing tool of the SWOT analysis.

As you may recall, SWOT is an acronym for Strengths, Weaknesses Opportunities and Threats. Opportunities and threats are external factors; strengths and weaknesses are internal factors.

When developing a competitive strategy, it is vital for an organization to be fully aware of its internal strengths and how those strengths relate to the competition. These strengths should be maximized and leveraged to the company’s Advantage as well as highlighted in all business and marketing activities that the company undertakes.

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