In competitive markets, players with different interests interact with each other, each of them trying to improve their position. Introducing new products, segmenting the market by developing and communicating specific features, defining a geographically differentiated strategy, or even deciding to stay out of a certain market or segment are some of the typical issues we have dealt with so far. Particularly in markets with a limited number of large and important players in the steps of the value chain —suppliers, competitors and customers— actions will cause specific reactions of other stakeholders that can —to a certain degree— be predicted from their position and preferences. Thus, when evaluating strategic initiatives, a proper understanding of the complex interplay of all players’ options and objectives is essential.
Our process provides a well-structured approach to assess these interplays and to support our clients’ decisions.
Selected cases: Competitive positioning
Growth strategy for an innovative drug
Our client had a well-established drug portfolio containing a highly innovative drug in a medium-sized segment for prescriptive indications. Growth and positioning were challenged by a competitive drug targeting a broader segment with recognized additional benefit. The client’s drug was viewed as a model for a larger future range of new treatments in the pipeline. As additional complication, special and expensive testing needs had to be considered. Together, we developed a defense and growth strategy to ensure the successful future development adaptive to the approach of the rival.
Portfolio/repositioning strategy for a drug at the end of its product lifecycle
In a large but saturated segment with many similar drugs/treatments (prescription), a competitor launched a new drug that was expected to quickly gain a great deal of market share. As a consequence, our client’s well-established, high-volume product in the second half of its lifecycle was seriously challenged. At the same time, their new product did not receive the approval of additional benefits from the authorities.
During the project, we helped our client develop a value-maximizing repositioning and partial pullback strategy by focusing our attention on specific patients.