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Baby Milk Powder

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Submitted By kittyhcrazy
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Filling baby bottles and soothing aching joints are a habit for Abbott. Abbott Laboratories is a top health care products manufacturer. Its pharmaceuticals include HIV treatments Norvir and Kaletra, rheumatoid arthritis therapy Humira, and Lupron to treat endometriosis and prostate cancer. Its nutritional products division makes such well-known brands as Similac infant formula and the Ensure line of nutrition supplements. But at the same time, its competitors are having different strengths and weaknesses to make them surviving in milk powder industry and to compete with Abbott. The two main competitors of Abbott in Hong Kong that we are focusing on is Mead Johnson and Wyeth, the comparison of strengths and weaknesses will be discussed below.
For Mead Johnson, it is a global nutritional company. Mead Johnson has aggressive marketing initiatives, especially driven by Direct-to-Consumer campaigns. Its adult formulas are not perceived as a premium product.
The similarities of the strengths for Mead Johnson and Abbott are that, both of the companies, Mead Johnson and Abbott, are very well known for its wide range of infant milk production. Both of them are recognized as nutritional expertise locally, nationally and internationally as their products are distributed in more than 100 countries. Second, both of them are famous in US market. Abbott had 20% in 2009 while Mead Johnson had 32%. Third, they both emphasize their own innovative research and development technology. For Abbott, it has invested US$3.7 billions in their research while Mead Johnson it has established the Mead Johnson Pediatric Nutrition Institute (MJPNI), about US$40 million above and beyond the company’s ongoing annual investment in research and development. Fourth, they both have contributed much on corporate social responsibilities. For Mead Johnson, its the Mead Johnson Nutritional Foundation cooperated with the Joint Council for International Children’s Services delicate to improve nutritional care for children living in vulnerable conditions around the world. And as for Abbott, it focuses current health care concerns in low-income areas of foreign nations.
The similarities of the weaknesses for Mead Johnson and Abbott are that, Mead Johnson tried to increase the price of their products to increase sales revenue. Although it has logged five consecutive quarters of double-digits increased in 2011, this leads to an unexpected situation, which is a declining market share about 4.3 percent. As for Abbott, is also having a declining market share though it is currently 6th largest pharmaceutical company, its worldwide growth restricted to single digits, but not double.
The differences for Mead Johnson and Abbott are that, Abbott is as known as a diverse expert by offering specialized medicines, medical diagnostic instruments and tests, minimally invasive surgical devices, nutritional supplements for infants, children and adults, veterinary care products. Its four main product lines are pharmaceutical, diagnostic, nutritional and vascular. What’s more, it has thousands of products and patents worldwide. On the other hand, Mead Johnson protects the environment of the communities, not only infants. They are committed to reducing the environmental impact of their business and products over the long term by using Enfamil reusable tub and refill system in the United States offers the potential for significant reduction in the carbon materials, 6o percent less energy and 50 percent reduction in greenhouse gas emissions.
For Wyeth, it was a pharmaceutical company, previously known for house hold products. The company has been operating in three areas that are, Wyeth Customer Care, Wyth Pharmaceuticals and Forte Dodge Animal Health.
The similarities of the strengths for Wyeth and Abbott are that, both of the companies, Wyeth and Abbott, are very well known for its wide range of infant milk Production. The companies have received numerous local, national and international accolades for commitment to workplace excellence. Abbott has even over 100 years success and experience; it can be regarded as a leading global employer. Second, Prevnar, the on pneumonic vaccine is the product of Wyeth research and development success. Abbott also produces nutritional products, for instance, Similac. The company also provides specially formulated medical nutritional products to patients with unique dietary needs due to injury or illness. Global Nutrition Industry forecasted to have continuous growth.
The similarities of the weakness for Wyeth and Abbott are that, Wyeth while taking over profits in end twentieth century could not be able to change the strategy for boosting up more profits and that old strategy blew down declining the profitability. And Abbott is having a declining market share though it is currently 6th largest pharmaceutical company, its worldwide growth restricted to single digits.
The differences for Wyeth and Abbott are that, Abbott is the innovation leader in industry; it focuses current health care concerns in low income areas of foreign nations. Its diverse product pipeline is to minimize risk and pursue new discoveries. And its current innovation pipeline is one of the world’s first bioresorbable stents; it has series of molecular diagnostic tools to detect new and emerging diseases. The biomarkers are used for detecting difficult-to-diagnose diseases and it has specially formulated therapeutic nutritionals to reduce muscle loss and build up new tissue. On the other hand, very low attention of Wyeth had been paid to IT sector with least executive innovation; basically they lack the system to deploy them, this being the management fault. Second, Wyeth’s inventory management system and global supply chain was not up to the mark of any global organization. But the supply chain management of Abbott is perfectly built. It has financial risk screening process for potential suppliers and extensive global supply chain helps mitigate shortages. Third, the research and development sector of Wyeth has been given a good deal of investment. But, Abbott is having high research costs, as its majority of R&D expenditures on pharmaceuticals, it has invested more than $3.7B in 2010 on many key programs.

Perceptual map
High price
High price

Unpopular
Unpopular
| * Abbot (new) * Abbot (new)
Popular
Popular * Wyeth * Wyeth * Abbott * Abbott | | * Mead Johnson * Mead Johnson |
Low price
Low price…...

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