Problem Formulation and Identification Paper Essay - 1

Problem Formulation and Identification Paper - Essay Example bable due to start-up financial constraints and approval difficulties from FDA, Chao faced reality; he opted to first enter the generic drug making industry where costs are lower and risks on FDA approval, lower. This decision was made after finding out in Chao’s research that though the generic drugs industry yielded lower margins compared to its branded counterpart they were able to gain handsome income. Watson’s finances were insufficient to operate the company in its early days. With this problem, Chao had displayed another of his quality in solving the problem, by persistently finding a method that works. After failed attempts to acquire funding from banks and other orthodox financial sources, instead of he decided to tap the Taiwanese community in his area for monetary aid. With Chao’s leadership, the company was also able to point out alternative opportunities that could eventually solve its problem. Knowing that he cannot squarely compete, Watson seized the market niche where his competitors had dared not to tap because of low margin. With the unique operating stratagem implemented by its founder and CEO, the company was able to capitalize on the territories that are untapped by its competitors in its early years to generate sales. By producing generic drugs these low margin niche drug markets, Watson Pharmaceuticals was able become pioneers in them. As profits went in, the company had again inked out another problem, how to make the company grow. This propelled them to product innovation, to improve the status quo by finding ideas that will make their products more effective and sellable. Watson had successfully gained the exclusive right to produce additional 17 generic products. This surged Watson’s profits even further. Having sufficient money to expand further, Watson Pharmaceuticals acquired other pharmaceutical companies that will extend their market reach. The company was able to incorporate 9 subsidiaries to its empire. Watson