Strategic Responses of Pharmaceutical Companies and Healthcare Organisations to Maintain Competitive Advantage in the Cataract Market

Abstract

This paper describes the overall strategy of two pharmaceutical companies (providing non-steroidal anti-inflammatory drops, NSAID) and a general hospital (department of ophthalmology) when the market (cataract market) is modified (prevalence of phacoemulsification). The new entrant introduces a superior product (Single Dose Unit, SDU NSAIDs), which fails to prevail due to incompatibility between research and development (R&D) and marketing objectives. The suboptimal strategy of the entrant helps the regular supplier to maintain the domination of the market by introducing a substitute product supported by a strong marketing policy.

Keywords

cataract cost-effect market audit NSAID phacoemulsification pharmaceutical

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