- 31 Mar, 2021
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Strategic Marketing Plan C
Abbott Laboratories faces unique legal challenges associated with the existing or new laws in foreign markets, which create uncertainty. This relates to laws that govern copyrights/patents and intellectual property, consumer protection, employment laws, data protection, discrimination laws, anti-trust law in the area of medical appliances & equipment industry. This implies that in its global operations, the company needs to dynamically adapt and develop an understanding of the land laws (Fern Fort University, n.d.).
Technological Forces
In the technological environment, the medical appliances and equipment industry leverages the development of new technology to maintain a competitive edge. As a result, new technologies such as artificial intelligence and machine learning, which may disrupt the market, also present an imminent threat to Abbott Laboratories if it cannot effectively adapt. This is largely linked to its competitors’ prospects to develop advanced technology that can offer price/cost leadership (Fern Fort University, n.d.).
Social Forces
In the context of the social environment, Abbot Laboratories produces products that are highly sensitive to consumer tastes and preferences. This implies that the product offering should align with the needs and preferences of the consumers. However, changes in consumer tastes and preferences, particularly with the rising education levels and the influence of social media on consumer attitudes, may significantly affect the company’s business model. Additionally, the growing environmental consciousness implies that consumers’ decisions in purchasing the company’s products may be influenced by their engagement in corporate social responsibility and efficiency in waste management (Fern Fort University, n.d.).
Current Target Markets
The main target market for Abbott Laboratories is consumers of medical appliances and equipment. This includes both individuals and organizations dealing with medical-related products and services. In terms of product usage, the company delivers diagnostic products, vascular products, authorized pharmaceutical products, and nutritional products that are beneficial to people of all ages and genders (Edward Wexler-Beron, Bejjani & Melief, 2006).
Review Current Marketing
Abbott Laboratories implements the traditional approach to marketing which involves the use of digital media, print, and television. The company invests a lot of resources on its advertising budget geared towards accessing premium ad units. A key consideration in its advertisements is the focus on communicating to the consumers about the high-end technology used in the production of their new range of products and the relative ease and convenience the products present. This is complemented by implementing a variable pricing strategy based on the company’s research and development initiatives (Fern Fort University, n.d.).
SWOT Analysis
Strengths
Abbot Laboratories enjoys a strong performance in its four areas of focus: diagnostic products, vascular products, authorized pharmaceutical products, and nutritional products, which enhances the growth and sustainability of its business model. Moreover, the company enjoys a wide geographical base of operations that covers over 160 nations. Within the medical appliances and equipment industry, the company enjoys market leadership in different fields (Haque, n.d).
Weaknesses
The main weakness of the company relates to controversies that negatively affect the brand image. For example, the Double Irish tax structure, which the company had used for a long-time, created concern over tax fraud engagement. Further, consumers’ negative reviews and opinions about the company’s product and corporate initiatives, particularly environment lobby groups, significantly threaten its image. However, the concerns over the company’s brand image can largely be addressed through effective public relations (Haque, n.d.).
Opportunities
The growth in the market for personalized medicines represents a key opportunity which Abbot Laboratories can tap to sustain an upward growth trajectory. This implies that by focusing on consumer needs for bespoke medicines, the company can exploit an emerging market niche. Additionally, the rise in demand for clinical diagnostics, which is linked to the high prevalence of infectious and chronic diseases, offers the company an opportunity for further growth (Haque, n.d.).
Threats
The main threat for Abbot Laboratories to the highly dynamic government regulations focused on introducing drug pricing controls. More particularly, the changes may negatively affect the company’s pricing strategy, profit margins, in addition to the likelihood of consumers purchasing the products. With the increasing use of information systems, the company also faces the threat of cyber-attacks. In its global operations, Abbot Laboratories is exposed to the risk associated with mergers and acquisitions due to the uncertainties about partnering companies (Haque, n.d.).