It must apply the same rigor it does to evaluating its supply chain as it does to the quality of its pharmaceutical products.

Strategic inflexibility

As a company with a worldwide outreach, Abbott would benefit from leasing areas to serve as distribution hubs. This would enable it to retain close contact with both outsourced and non-outsourced segments of the supply chain, yet allow for greater flexibility and agility regarding the market situation and new opportunities. Of course, the costs of leasing must be contrasted on a cost-benefit basis with the costs of maintaining a unity.

Increased mobility and exit barriers

As demand grows more volatile, the costs of 'exiting' a particular market or area have increased. This can be difficult if a product is shown to be ineffective over time or demand decreases due to the availabilities of cheaper competitors or generics, or simply because of demographic shifts. Once again...
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