Abbott must expand its pharmaceutical research endeavors to ensure that it is consistently generating new drugs that are superior in quality to its competitors. Good research requires constant infusions of new talent and knowledge into the company.

Problem 3: Too much emphasis on high-cost product lines

Some of Abbott's product lines target a higher-end clientele, such as its animal wellness and vision care products, for which there may not be sufficient demand during lean times. Abbot must seek out a more diversified line of products economically, as well as in terms of its product offerings. Expanding into over-the-counter medications such as analgesics, antacids, or cold treatments, which form a core segment of the pharmaceutical industry, would be one way to ensure that consumers across the economic as well as health spectrum purchase Abbott products.

Problem 4: Insufficient control over supply chain

To diversify its geographic...

China and Japan form the focus of its expansion strategy (Zacks analyst blog highlights, 2011, Yahoo). But expanding too quickly can also have a considerable 'downside,' such as a loss of control over the company's supply chain. It is essential that Abbott's products have a high quality standard, to ensure that its reputation remains untainted at home and abroad. As a result, Abbott must conduct quality and cost-efficiency audits regularly of its overseas production and distribution facilities.
References

Products by category. (2011). Abbott Laboratories. Retrieved August 6, 2011 at http://www.abbott.com/global/url/content/en_US/20.20:20/product/Products_By_Category.htm

Zacks analyst blog highlights. (2011). Yahoo. Retrieved August 6, 2011 at http://finance.yahoo.com/news/The-Zacks-Analyst-Blog-zacks-1974274823.html?x=0&.v=1