Discuss how and why Glaxo and EMI performed so differently in the medical industry in spite of both firms having significant innovative developments in the industry.

The company, EMI, refers to the Emergency Medical International Inc. (EMI), which is a privately owned Florida Corporation with Mr Juan Manfredi as its President and major stakeholder. It was founded in the year 1981 as a services Company providing emergency vehicles for the export markets. Its focus in business has been in the area of direct marketing of both fresh and reconditioned respirators as well as maintaining a complete array of its stock of disposables and replacement items.

However, it was only in the year 1986, with its entry into the Medical catheters business, that the company registered high sales and profits and scaled newer heights in medical technology.

However, in the case of Glaxo Smith Kline, it is seen that it is a public limited company, having been registered in the London and New York Stock Exchanges. Its sales have been to the tune of £22.7 billion and profits of £7.8 billion during the financial year 2007.

It employs around 110,000 people worldwide in its offices and sales depots, and of this, 37% (40,000) personnel are employed in their sales and marketing divisions.

The question of the commitment problems faced by the monopolists of a durable product could be seen in terms of holding periodical sales as a means of price differentiation. A new group of consumers enter the market periodically, interested in either imminent purchases or future purchasing. In each group, consumers adopt different strategies to suit the short and long-term requirements of the business. The strategies adopted by sellers would be to charge a price low enough to attract immediate buyers with a high intention to purchase in the short run, and in the case of the long run, the price would be dropped very low enough to attract buyers who have a low willingness to buy. The fact remains that on a particular sale date, the sellers would have high intention to buy, and naturally, the next day, the prices would increase substantially.

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Academic.Tips. 2022. "Discuss how and why Glaxo and EMI performed so differently in the medical industry in spite of both firms having significant innovative developments in the industry." June 21, 2022. https://academic.tips/question/discuss-how-and-why-glaxo-and-emi-performed-so-differently-in-the-medical-industry-in-spite-of-both-firms-having-significant-innovative-developments-in-the-industry/.

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