...Generic drugs are copies of brand-name drugs that have exactly the same dosage, intended use, effects, sideeffects, and route of administration, risks, safety, and strength as the original drug. In other words, their pharmacological effects are exactly the same as those of their brand-name counterparts. Many people become concerned because generic drugs are often substantially cheaper than the brand-name versions. They wonder if the quality and effectiveness have been compromised to make the less expensive products. The Food and Drug Administration (FDA) requires that generic drugs be as safe and effective as brand-name drugs. Actually, generic drugs are only cheaper because the manufacturers have not had the expenses of developing and marketing a new drug. When a company brings a new drug onto the market, the firm has already spent substantial money on research, development, marketing and promotion of the drug. A patent is granted that gives the company that developed the drug an exclusive right to sell the drug as long as the patent is in effect. As the patent nears expiration, manufacturers can apply to the FDA for permission to make and sell generic versions of the drug; and without the startup costs for development of the drug, other companies can afford to make and sell it more cheaply. When multiple companies begin producing and selling a drug, the competition among them can also drive the price down even further. So there's no truth in the myths that...
Words: 1583 - Pages: 7
...Generic Prescription Drug Costs Prescription drugs have been causing problems in the United States for a very long time. Pharmaceutical companies are one of the largest profiting global industries. It was in 2009 when drug shortages increased with numbers reaching what many have termed crisis level which raised all prices of generic prescription drugs significantly (Fox, Sweet, & Jensen, 2014). This increase was and still is leaving patients with a life threatening decision; either go on paying for their prescriptions which they cannot afford or stop their treatment all together and risk their illness progressing and leading to possible death. Some have chosen to end their treatment altogether, while other patients have confessed to taking dangerous measures to ensure their refills last longer like cutting their pills in half or skipping doses. The United States drug manufacturers are raising prices endlessly without regulation. Instead of generic brand medication being affordable, they are creating their own monopolies and setting their prices just as competitively as name brands. Instead of buying and stocking manufacturers with raw materials from within the United States, they source raw materials from overseas creating delays and a huge shortage in raw materials has surfaced. Instead of keeping the FDA in the loop as to what is going on in the production process, manufacturers wait until the very last minute to report a problem which goes against all rules, regulations...
Words: 3188 - Pages: 13
...INTRODUCTION Generic brands are a rapidly growing part of the market today. Increases in costs to suppliers and distributers have caused a decline in profit for national brands. In the interest of lowering costs and increasing profit, it is beneficial for North Star to consider the potential of generic brand sales. To ensure that North Star is equipped to make the best decisions regarding entering the generic brands market, sales manager Paul Gettisfield authorized this report on July 8, 2011. Purpose and Scope In this study, the problem addressed was the question of consumer acceptance of generic brands for the products that North Star produces. Soap, deodorant, ammonia, chili, canned ham, and frozen vegetables are currently produced by North Star as national brands. If generic brands are to be used, the market sales for generic products must be assessed along with consumer perception. Procedures To answer these questions, the following methods were used: 1. A mail survey of 1500 consumers in California, Texas, and Arizona with the following questions: a. Have you purchased a good generic product? b. Have you purchased a nonfood generic product? c. If you could save at least 30 percent by purchasing a generic brand rather than a national brand, would you purchase a generic brand? (Products listed in alphabetical order) 2. 20 randomly selected chain supermarkets located in California, Texas and Arizona were audited in August. 3...
Words: 984 - Pages: 4
...The Discipline of Market Leaders Customer Value Model (Porter’s generic strategies with particular reference to Apple Inc) Table of contents Introduction…………………………………………………………………………………………………. Porter’s three Generic Competitive Strategies…………………………………………………………. Cost Leadership…………………………………………………………………………………………… Differentiation………………………………………………………………………………………………. Focus or Niche strategy…………………………………………………………………………………... Apple Inc……………………………………………………………………………………………………. Identification and Critical Evaluation of the Company’s Existing Strategies………………………… Apple Inc Cost leadership Strategy……………………………………………………………………… Apple Inc Differentiation Strategy………………………………………………………………………... Apple Inc Focus or Niche Strategy………………………………………………………………………. Conclusion………………………………………………………………………………………………….. References…………………………………………………………………………………………………. 1.0 Introduction A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost...
Words: 2894 - Pages: 12
...Generic Competitive Advantage May 2, 2012 The Generic Competitive Strategies can be used as a business tool which helps strategists understand how the position of a company within its industry can be directly related to the strategy it employs. The strategy employed can then be analyzed to understand where a company's competitive advantage lies, with a view to maintaining it. Porter (1985). In the early 1980s the most widely read books on competitive analysis were written by Michael Porter. They consisted of Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. In his various books, Porter developed three generic strategies that, he argues, can be used singly or in combination to create a defendable position and to outperform competitors, whether they are within an industry or across nations. Porter states that the strategies are generic because they are applicable to a large variety of situations and contexts. According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These options are: Cost Leadership, Differentiation and Focus. The Cost Leadership Strategy is a Strategy that is used by businesses to create a low cost of operation within their niche. The use of this strategy is to gain an advantage over competitors by reducing operation costs below that of others in the same industry. Inside Porter's generic strategies are ways of gaining competitive...
Words: 708 - Pages: 3
...Do generic products really save you money? With the price of living getting higher and higher as very year passes, people are looking for alternative ways to save money. The main reason for buying generic products, saving money, is simple enough. But there's also the satisfaction of not giving in to the marketing hype and buying something just because a company promotes it everywhere. The generic labels may not be as fancy as the brand-name products, and the taste of generic items, such as soda, may not appeal to you depending on your taste buds, but it's worth trying generic brands to see if you like them. The savings can add up over a lifetime, as a savings calculator can quickly show you. And if the savings isn't enough, or the brand name is much better than the generic, you can always go back to the branded product. You can even buy popular brands from the past. But remember the power of brands. Since the same manufacturer of a brand-name product often makes the generic product with the same ingredients, what the company selling the branded item is selling is the perception of something better. Consumers don't buy generic products because they think it makes them look bad, said Jason Gurwin, CEO of Pushpins, a mobile coupon company. Over-the-counter medications.Since the Food and Drug Administration requires generic medications to have the same active ingredients as the patented medications they replace, over-the-counter medications are the best way to save money by...
Words: 1103 - Pages: 5
...CHAPTER 5 THE FIVE GENERIC COMPETITIVE STRATEGIES - Which One to Employ? Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1. Understand what distinguishes each of the five generic strategies and why some of these strategies work better in certain kinds of industry and competitive conditions than in others. 2. Gain command of the major avenues for achieving a competitive advantage based on lower costs. 3. Learn the major avenues to a competitive advantage based on differentiating a company’s product or service offering from the offerings of rivals. 4. Recognize the attributes of a best-cost provider strategy and the way in which some firms use a hybrid strategy to go about building a competitive advantage and delivering superior value to customers. 5–2 Why Do Strategies Differ? Is the firm’s market target broad or narrow? Key factors that distinguish one strategy from another Is the competitive advantage pursued linked to low costs or product differentiation? 5–3 THE FIVE GENERIC COMPETITIVE STRATEGIES Low-Cost Provider Broad Differentiation Focused Low-Cost Focused Differentiation Best-Cost Provider Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Concentrating on a narrow buyer...
Words: 1506 - Pages: 7
...“Outline Porter’s three generic strategies and discuss whether generic strategies can lead to sustainable competitive advantage” With many views and variations on strategy and a company’s ability to sustain competitive advantage, it seems to be generally acknowledged that Porter’s three generic strategies i.e. Low Cost, Differentiation and Focus strategies, are the most widely accepted. In my following essay I will outline these three generic strategies and discus whether or not generic strategies can lead to sustainable competitive advantage. Cost-leadership strategy, or low cost strategy allows the firm to gain competitive advantage and market share by appealing to cost-conscious consumers. They can either use a no frills approach strategy which combines an inferior product with a low price, or a low-priced strategy where they would produce a product of similar quality but sell it at a lower price. (Johnson et. al, 2009). Pursuing low product cost alone however will not sustain competitive advantage. Managers must attempt to reduce costs in other areas of the firm, such as manufacturing and distribution in order to stay ahead of their competitors. Differentiation strategies involve trying to incorporate unique features to your product or service that will allow consumers to differentiate you from your competitors. This type of strategy can be particularly useful in markets which are saturated or where consumers aren’t particularly price-sensitive. One example of...
Words: 491 - Pages: 2
...2319-7668. Volume 15, Issue 1 (Nov. - Dec. 2013), PP 11-17 www.iosrjournals.org Porter’s Generic Competitive Strategies Ritika Tanwar Assistant Professor Department of Commerce Dyal Singh College (M) Delhi University Abstract Generic Competitive Strategy: Basically, strategy is about two things: deciding where you want your business to go, and deciding how to get there. A more complete definition is based on competitive advantage, the object of most corporate strategy: “Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation.” Michael Porter Competitive strategies involve taking offensive or defensive actions to create a defendable position in the industry. Generic strategies can help the organization to cope with the five competitive forces in the industry and do better than other organization in the industry. Generic strategies include ‘overall cost leadership’, ‘differentiation’, and ‘focus’. Generally firms pursue only one of the above generic strategies. However some firms make an effort to pursue only one of the above generic strategies. However some firms make an effort to pursue more than one strategy at a time...
Words: 5293 - Pages: 22
...Thesis: A great deal of controversy has arisen over Genetically Modified Organisms (GMOs) and Genetically Modified Food, especially surrounding the production, sale, and consumption of genetically modified foods. Many people are concerned that the consumption of GMO foods may pose serious health risks. The concern is centered on the notion that there could potentially be various different unforeseen consequences due to the consumption of GMO foods. This paper will explore historical development and the effects of GMO on society and technology. Genetically modified organisms ( GMO’s) is a term most commonly used to refer to crop plants created for human or animal consumption using the latest biotechnology techniques. These plants have been modified in the laboratory to enhance desired traits such as increased resistance to herbicides or improved nutritional content. The enhancement of desired traits has traditionally been undertaken through breeding, but conventional plant breeding methods can be very time consuming. Genetic engineering, on the other hand, can create plants with the exact desired trait very rapidly and with great accuracy. For example, plant geneticists can isolate a gene responsible for drought tolerance and insert that gene into a different plant. Intro: I. Introduction a. Major effects of Genetically Modified Organisms (GMOs) on today’s world( Victor) 1. Health Dangers of High Fructose Corn Syrup 2. Significant...
Words: 363 - Pages: 2
...Shakespeare Hamlet’s Heroism Heroes, are seen in different forms. Shakespeare definitely knew when he wrote about Hamlet, Prince of Denmark that he would be writing about a tremendous hero. Many people would not agree that Hamlet could be seen as a hero. Throughout the play he does prove to be a hero. The beginning of such bravery is seen when his father appears to him as a ghost. In a conversation between the ghost and Hamlet, Hamlet says, Rest, rest, perturbed spirit!—So, gentlemen, / With all my love I do commend me to you; / And what so poor a man as Hamlet is / May do t’express his love and friending to you, / God willing, shall not lack. Let us go in together, / And still your fingers on your lips, I pray / The time is out of joint. Oh, cursed spite / That ever I was born to set it right! / Nay, come, let’s go together.” (1.5.191-199). The ghost has confessed to Hamlet that he was murdered in this scene. This information is the reason why Hamlet must seek out revenge against the treacherous events that has been seen in Denmark. This is the beginning of where his heroism comes into play. In this exact scene he started to take on the responsibility that is set out for him. He accepts the authority that the ghost of his father has set upon him. In these lines “And still your fingers on your lips, I pray / The time is out of joint. Oh, cursed spite / That ever I was born to set it right” (1.5.196-198). He listens to the spirit with will and loyalty...
Words: 1067 - Pages: 5
...Formative Assessment 1 (Generic Transformations 2008 paper) Q1B) The Rape of the Lock, written by Pope in response to a feud between two friends about the theft of a lock of hair, is revolutionary in its evolution of the comic satire genre into the field of epic poetry. Pope, an avid student of the Greek epics (he produced his own translations of some that provided much of his income during his life), takes the basic skeleton of an epic: its structure, critical content and even linguistic points; and crafts around the skeleton a poem of wit and comedy that is at its core epic, but also uses this very epic backbone to undermine its tales own importance and to satirise the content that has been moulded around the form. This creation from Pope marks the offshoot of the epic genre, transforming it into mock epic, an independent genre that bears many of the traits of its forebearer in a new light. The transformations to the epic that Pope undertakes in the Rape of the Lock to satiric effect can be broadly split into transformations of heroic content and transformations of heroic language. The former can be clearly observed here: Pope takes a staple of epic writing, heroic weaponry, and twists its use to his satirical needs. The weapon itself is given, through the use of a similar description, equal place with great weapons like Agamemnon's sceptre, whose lineage was used to reinforce Agamemnon's dominance and power in the Iliad, being forged by Hephaestus and owned by the Gods...
Words: 896 - Pages: 4
...Holland’s Personality Types Essay Reid Generic M6A1: Holland’s Personality Types Essay John Holland, Ph.D., professor emeritus at Johns Hopkins University, is a psychologist who devoted his professional life to researching issues related to career choice and satisfaction. (hopkinsmedicine.org) Holland identified six different personalities a person could have and careers that corresponded or complemented each. Though there are many factors that influence a person on which career they will peruse, Holland theorized that his six different personality types and traits could help decide what type of career one could excel at. Though his personality types are considered to be “pure types” and rarely will be an exact “fit” for someone. Holland’s personality types are visually represented by a hexagonal model. The types closest to each other on the hexagon have the most characteristics in common. Those types that are furthest apart, i.e., opposites on the hexagon, have the least in common. (Hopkinsmedicine.org) Many people are blends of several personality types and can do well at more than one kind of occupation. (Berk, 2014) The first personality trait Holland described was the investigative person. This type of person tends to be analytical and often considered intellectual. They often enjoy mathematics and scientific based research. They will tend to enjoy complex and abstract problem solving. Because they are introspective and focused on creative problem solving...
Words: 870 - Pages: 4
...Cost Leadership Adopting an Effective Cost Leadership Strategy Agenda • What is Cost Leadership? • Businesses Reaping the Benefits • Examples of Successful Initiatives • New ways of Looking at Costs • Seeking Opportunity 2 What is Cost Leadership? Michael Porter identifies three generic business strategies: 3 What is Cost Leadership? Cost Leadership, is based on being the lowest cost producer in an industry, for a certain quality of product. To achieve it companies must: • • • • Improve process efficiencies Gain unique access to a source of lower cost materials Outsource appropriate functions Avoid certain costs altogether 4 Businesses Reaping the Benefits 60 of the FTSE 100 companies saw their share price increase over the past six months. Top 10 FTSE 100 Risers Share price increase over 6mths (%) 100 90 80 70 60 50 40 30 20 10 0 FTSE 100 Companies 5 Businesses Reaping the Benefits By offering relatively inexpensive food and hotel prices, Whitbread has managed to continue its expansion and saw its share value rise by more than a quarter in the past year. • Whitbread has focused on improving procurement practices, menu management and labour scheduling. • Andy Harrison, CEO at Whitbread, has championed the appointment of dedicated management teams, both centrally and at site level, to improve operational and cost efficiencies. • An example of approach is the company’s use of e-auctions to minimise the impact of rising commodity...
Words: 972 - Pages: 4
...A generic wide area network uses the following components: Component | Description | WAN cloud | The WAN cloud is the collection of equipment that makes up the WAN network. The WAN cloud is owned and maintained by large telecommunications companies. It is represented as a cloud because the physical structure varies, and different networks with common connection points may overlap. Few people thoroughly understand where data goes as it is switched through the "cloud." What is important is that data goes in, travels through the line, and arrives at its destination. | Central Office (CO) | The central office is a switching facility connected to the WAN, and is the nearest point of presence for the WAN provider. It provides WAN-cloud entry and exit points. | Local loop | The local loop is the cable that extends from the central office to the customer location. The local loop is owned and maintained by the WAN service provider. Typically, it is UTP, but it can also be one or a combination of UTP, fiber optic, or other media. The local loop is often referred to as the "last mile" because it represents the last portion of the WAN up to the customer premises. | Demarcation point (demarc) | When you contract with a local exchange carrier (LEC) for data or telephone services, they install a physical cable and a termination jack onto your premises. The demarcation point is the line that marks the boundary between the telco equipment and the private network or telephone system...
Words: 566 - Pages: 3
