SWOT analysis of Beximco Pharmaceuticals
This SWOT analysis of Beximco pharmaceuticals elaborates the strength & weakness of, opportunities & threats for Beximco pharmaceuticals Company. It will provide a visual overview that will prompt discussion around the company’s strategy and situation. This SWOT analysis of Beximco pharmaceuticals can be used to evaluate the position of their business. This can be utilized to guide business strategy session of Beximco pharmaceuticals.
Company Details of Beximco Pharmaceuticals Ltd
Beximco Pharmaceuticals Ltd. is one of the leading manufacturers of Active Pharmaceutical Ingredients and pharmaceutical formulations in Bangladesh.
Beximco Pharmaceuticals was founded in 1980, headquatered in Tongi, Dhaka, Bangladesh. It is the leader company of Beximco Group, one of the largest private sectors industrial conglomerates in Bangladesh. The global regulatory bodies of European Union, Brazil, Australia, Gulf nations, among others certified Beximco Pharma’s state-of-the-art manufacturing facilities. Beximco Pharmaceuticals Ltd is constantly building upon its portfolio and currently providing approximately 500 different products in different dosage forms that which include antibiotics, cardiovascular, respiratory, anti-diabetics, gastrointestinal, analgesics, etc.
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With many years of contract manufacturing experience and expertise with MNCs, adroit manpower and proven formulation capabilities, the company has been creating a visible and growing appearance across the countries offering high quality and affordable generics.
Beximco Pharmaceuticals Ltd has the unique characteristic as the sole Bangladeshi company getting listed on the AIM of London Stock Exchange.
SWOT analysis of Beximco Pharmaceuticals
Strength (Internal Strategic Analysis)
- Largest exporter in the country: – in the pharmaceuticals sector beximco is the largest exporter in Bangladesh. It earns 55% of its revenue from exporting.
- Strong brand image: – it has consistently been improving its products and so the brand image.
- Bigger market share: – In Bangladesh it possesses the bigger market share than many other giant medication providers. It offers more than 400 products.
- Product diversity: – it produces more than 200 generic which are available in more than 400 different forms, and many of them are leaders among others.
- Foreign market share: – As the most of the revenue comes from exporting, it possesses large market share in the foreign markets.
- Unique product: – it is the first company in Bangladesh to produce ARV drugs for AIDS/HIV cases.
- Corporate social responsibility: – it always has been working for social improvements. It is connected with many social welfare organization
- Public health checking point: – it has its own health checking point where they can directly communicate with people and gather information. They have pharmacies almost every division in Bangladesh.
- Expert employees: – Beximco Pharma has many experts like chemists, pharmacists, doctors, MBAs, microbiologists, and engineers who are highly educated. It makes the company gather more strength in the similar industrial sector.
- Certified by Global regulatory bodies – The global regulatory bodies of European Union, Brazil, Australia, Gulf nations, among others certified Beximco Pharma’s state-of-the-art manufacturing facilities.
- Strong R&D: – Beximco Pharmat is continuously searching for the next treatment advancements. The portfolio of Beximco features a list of high-quality, effective products which gave it an advantage to be staying in the top leading company list in the similar sector.
Weakness (Internal Strategic Analysis)
- Inconsistent in supplying product: Sometimes they are not able to produce specific products efficiently; as a result they cannot supply those products to retailers timely.
- Dependency on foreign products: – Beximco has to import Capsule Cap from other countries. It’s a big advantage for them to acquire larger market. It also imports dry-aluminum hydro-oxide , Dry magnesium hydro-oxide, and Lutin from abroad.
- Strong competitor: – Square pharma has larger market share than Beximco in Bangladesh, and the difference is stable.
- Use of cash for promotional purposes: – they donate money for promoting their products to the doctors, and distributors. Beximco already has a large market share. If they do not stop this behavior right now, they may lose market share in future.
- Loan defaulter: – one of the owners of Beximco Pharma did take a loan from Sonali Bank, and did not pay it back yet. It may harm the company image in long term.
- Environmental pollution: – for producing purpose, they are polluting water, and soil in the area where they setup their factories.
Opportunities (External Strategic Analysis)
- Enormous Growth – with an employee’s range of more than 2700, the company is growing day by day which is capable for growing market as well.
- Advantage as a globally certified company – it has been certified by different countries as a reputed medicine manufacturer. It can use this opportunity to enter other countries.
- Building Stonger Brand – as it fulfills social responsibilities, there is a huge possibility of getting more market share in future.
Threats (External Strategic Analysis)
- Threat to environment – as it pollutes environmental elements, if the Bangladeshi regulatory body takes any steps against it, that may create problem for its growing.
- Huge competition – first level companies like Square Pharmaceuticals and Incepta Pharmaceuticals are doing well, and gradually they are gaining more market shares which is another barrier for Beximco pharmacuticals.
- New Entrants in the market – as the whole country is doing well in the pharmaceutical sector, the number of new comers are increasing more than ever. This may result in declining market shares.
If we closely look at the SWOT Analysis of Beximco pharmaceuticals, we can see that there are more competitive advantages than the disadvantages. The strategic operations are highly functional. If weak points are not overlooked, and proper steps are taken, this company will be able to be staying in leading position consistently.
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