Marketing: What is Diversification? Essay

In our experience with Pharmasim we learned that Marketing decision making must be very sensitive and responsive to everything going on in the industry which is very complex. Consumer responses to marketing tactics can be volatile and unpredictable and no idea is guaranteed to work well. Marketing is a matter of meticulous research, assumptions, planning, and volatility at times. Overall we took away two major points: 1) that it is important to consider the product lifecycle in evaluating how to promote businesses and, 2) that the “Sweet Spot” as a competitive advantage should be the greatest point of consideration when evaluating how to best gain leverage to beat the competition in the minds of

Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

2. Patent related and Generic Competition: The developed countries like US and Europe have strong patent protection laws which gives a lot of benefits for the pharmaceutical companies. But, the patent

Diversification involves taking a new product or service into a new market; this strategy is notably the riskiest as the organisation has to carefully research the market and plan the launch of the product or service. Due to the risk involved, a public sector organisation like the NHS cannot afford to take the associated risk, but the NHS does compete in one whole new market in catering and weight loss. Here the aim of the NHS is to provide weight loss menus, but their USP (unique selling proposition) is associated with health.

Whether eastern-based medicine or western medicine, there is a multitude of so-called healing modalities. A plethora of industries is available to get their share of the huge financial pie. The pharmaceutical industry is one of the

Nowadays, in the process of development of science technology and globalization, more and more organizations have realized that the understanding of organizational diversity and get used to the diversification of the market has become the important factors to get the market. On one hand, for the enterprise, the diversification of the workplace can help the administrators make better decisions, improve the effectiveness and innovation to solve the problem. On the other hand, for the outside of the enterprise, the improvement of the diversity of the organization is contributing to meet the needs of the different customer and different market.

Novartis, a large multinational pharmaceutical company, recently diversified by buying Alcon, in a £24.8bn deal. Alcon is a producer of eye care products such as contact lenses. Google has diversified by investing £124m in a wind power business. To what extent is diversification the best strategy to achieve profitable growth? Justify your answer with reference to Novartis, Google and/ or other organisations that you know. (40 marks)

Like any other industry, medicine also has its consumers. Patients often search for a medical practitioner or system that best reflects their own values. The medical community is continually changing, as are the rules and regulation that govern health

Threats: big competitors; loosing money in the process of implementation international strategy; lack of promotion; etc.

The corporate strategy of the business diversification is to create a synergy to achieve more performance under a single umbrella rather than diverse business units (SNU, 2016). A business diversification is to build the company shareholder value when the independent business units can perform under a single corporation as an umbrella organization instead of independent parents or a corporation. A diversified organization has many business units and each business units have its own business level strategy irrespective of whether they are related or not. A successful business diversification not only spreads the business risk across the diverse units but also adds a long term economic value to the company. The strategy for starting a new business is based on industry attractiveness test, the cost of entry and the better off test (Thompson, Peteraf, Gamble, and Strickland, 2016).

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

Also, internationalization or geographical diversification may lead to problems related to psychic distances. As the company gets more diversified, information flow will be harder due to differences in language, culture, level of education, political systems, foreignness and level of industrial development.

One of the benefits of both unrelated and related diversification strategies according to Zhang was, “Speed and differentiation… two approaches to be better customer focused; speed in being able to satisfy customers’ needs as quickly as possible and differentiation in being able to offer new and innovative products to meet different needs. (pg. 7)

With this come different strategies to achieve growth such as through market penetration, product development, market development and diversification. When these all are broken down in details, it becomes a clearer picture. So when it comes to market penetration it is the objective of reaching higher number of sales and having a larger share with products already existing. Out of the four strategies this is the least risky one. However, there is still some low risk because prices which are low are being used to penetrate markets and it could lead to potentially damaging price wars that reduces the profit margins of all firms in the industry. When it comes to market development, it means to sell the products already existing in a market, but to sell them in a new market, this includes exporting goods to overseas markets or selling to a new market segment. When it is about Product development it is the progress made in current existing products and then sold or even new products being sold in existing markets. For example, the launch of red bull standard, they took a product which had already been in the market before, changed it a little bit and modified it and converted into a different version and sold it in the same market where red bull standard was sold. Product development is about creating something new or modifying product into its better self to attract consumers. Moving to Diversification- it means selling unrelated goods or new products, in new markets The

The term "product" refers to tangible, physical products as well as services. A product is everything one receives in an exchange,