3. Contents
Industry & Company Profile and Key People
Competitors
Internal Factor Evaluation
External Factor Evaluation
Portor’s Five Forces
Competitive Profile Matrix
Recommendations & Conclusion
4. Industry Overview
• Pakistan Pharmaceutical Manufacturers’ Association
• In 1947, hardly any pharma industry.
• Now, 759 pharma manufacturing units + 25
multinational brands.
• Approx. meet 70% country demand.
• 2007 pharma sold were US$1.4bn.
• Despite good growth in last decade, about half of the
population have no access to modern medicine.
• Need more work from Govt. and Industry Stakeholders.
Pharma Link
5. Company Profile
Location
Head Office
Opposite Radio Pakistan
Transmission Center HYD
Road, Karachi
Products
1. Pharmaceuticals
2. Nutritional
3. Diagnostics
4. Medical Devices
Financial Facts
Revenue ▲PKR 26,088,233
(in ‘000) 2017
Total assets ▲PKR 19,236,259
(in ‘000) 2017
Board of Directors
Munir A. Shaikh (Chairman)
Syed Anis Ahmed (CEO)
Jamshed Azhar (CFO)
Rana A. Latif (Dir. Operations)
6. Company Profile
Startup
In 1948,
130+ countries
presence
Competitors
All the Top
Pharmaceutical
Companies of
Pakistan
Personnel
Employees 1500
Manufacturing Facilities At
Landhi and Korangi
8. GSK is leading Pharma company of Pakistan and world’s 2nd largest
company. It was formed in 2001 after the merger of SmithKline,
Beecham (Pakistan) Limited and Glaxo Wellcome (Pakistan)
Limited. The present employees are about 2,000 and manages 150
brands.
The SEARLE Company Ltd (TSCL) incorporated in
Pakistan in 1965 as a subsidiary of G.D. Searle & Co.,
U.S.A. Today, Searle is ranked as 4th leading
pharmaceutical company in Pakistan. TSCL is
manufacturing organization of branded generics and
providing best research products in services of mankind.
Sanofi-aventis Pakistan limited ("Sanofi") is a patient-centric
company with over 1000 employees working every day with the
commitment to improve health and wellness across the country.
Sanofi ranks amongst the top ten pharmaceutical firms in Pakistan.
9. Ferozsons Laboratories founded in 1960. Ferozsons has market
leader brands in the areas of gastroenterology, hepatology,
cardiology and oncology, with an emerging presence in
endocrinology as well as mother and child health the diabetes spa.
Pfizer Pakistan has been working for the health and
well-being of people in Pakistan since 1959. Pfizer’s
Pakistan owns the livelihood of 1000 people. The
Pakistan affiliate is also responsible for managing
distribution networks in Afghanistan.
Getz Pharma is a member of the Getz Group of Companies,
founded in 1995 by Getz Brothers and Co. Inc. It employs more
than 5,700 highly qualified people worldwide and has operations in
South Asia, Central Asia, South-East Asia, Asia-Pacific, the Middle
East and Africa
10. Vision and
Mission
Vision:
• To be the most admired
healthcare company in
Pakistan.
Mission:
• To deliver consistently
superior products and
services which
contribute significantly
to improve the quality of
life of consumers.
11. Mission Statement Evaluation
Items Yes/No
Customers Yes
Products Yes
Markets No
Technology No
Concern for Survival, Growth, and Profitability Yes
Philosophy Yes
Self-Concept No
Concern for Public Image No
Concern for Employees No
12. Internal Strengths And Weaknesses
Strengths:
1. Strong Brand Reputation in Pharma Industry
2. Global Presence
3. Strategic Alliances
4. Diversified variety of Products
5. Experience of 100+ years in Pharma Industry
6. Innovation Leader
Weaknesses:
1. Labor Turnover
2. Recent Expiring Patents
3. Declining Marketing Share
4. Less Focus on Marketing
13. Internal Factor Evaluation (IFE)
Strengths Weight Rating Weighted
Average
Strong Brand Reputation in Pharma Industry 0.2 3 0.6
Global Presence 0.1 2 0.2
Strategic Alliances 0.2 3 0.6
Diversified variety of Products 0.1 3 0.3
Experience of 100+ years in Pharma Industry 0.05 1 0.05
Innovation Leader 0.1 3 0.3
Weaknesses
Labor Turnover 0.07 4 0.28
Recent Expiring Patents 0.06 4 0.24
Declining Marketing Share 0.07 3 0.21
Less Focus on Marketing 0.05 2 0.1
Total 1 2.88
14. External Opportunities And Threats
Opportunities:
1. Expected Growth in Industry
2. Increase in requirement of “Quality of Life”
3. Support From Govt.
4. Increase in consumption of Customers
5. Increasing Technology in Health Care Products
Threats:
1. Entrance of New Multinational Firm Exchange Rate
Fluctuation
2. Strict Rules and Regulations
3. Threat of Substitutes like Herbal, and Homeopathic products.
4. Increasing issues of Copy
15. External Factor Evaluation (EFE)
Opportunities Weight Rating Wt. Av.
Expected Growth in Industry 0.05 2 0.1
Increase in requirement of “Quality of Life” 0.1 3 0.3
Support From Govt. 0.05 2 0.1
Increase in consumption of Customers 0.1 3 0.3
Increasing Technology in Health Care Products 0.2 4 0.8
Threats 0.45
Entrance of New Multinational Firm 0.15 3
Exchange Rate Fluctuation 0.12 3 0.36
Strict Rules and Regulations 0.13 3 0.39
Threat of Substitutes, i.e., Herbal, and Homeopathic
products. 0.07 2 0.14
Increasing issues of Copy 0.03 2 0.06
Total 1 3
19. Strengths
Strong Brand Reputation in Pharma
Industry
1.Global Presence
2.Strategic Alliances
3.Diversified variety of Products
4.Experience of 100+ years in
Pharma Industry
5.Innovation Leader
Weaknesses
Labor Turnover
1.Recent Expiring
Patents
2.Declining Marketing
Share
3.Less Focus on
Marketing
Threat
Entrance of New
Multinational Firms
Exchange Rate
Fluctuation
1.Strict Rules &
Regulations
2.Threat of Substitutes
3.Increasing issues of
Copy
Opportunities
Expected Growth in Industry
Increase in requirement of
“Quality of Life”
Support From Govt.
Increase in consumption of
Customers
Increasing Technology in
Health Care Products
SO STRATEGIES
1. Through Strategic Alliance carter
the growth in industry (S3, O1)
2. Expand the distribution to
access the demand for modern
medicines (S3, O4, O5).
WO STRATEGIES
1. Social sites can be used for
promotion &
marketing. (W3, W4, O4, O5).
WT STRATEGIES
1. Focus on Marketing practices will
reduce the threat of substitute and
issues of copy as customers will find
the actual products. W4, T4, T5).
2. Reissue the expired patents with
modifications to overcome the threat
of copying. (W2, T5).
ST STRATEGIES
1. Focus on Innovation and using
strategic alliances will reduce the
threat of entrance of new firms. (S3,
S6, T1).
2. Develop the products that have
minimal side effects to face the
competition from herbal and
homeopathic products. (S1, S5, S6,
T3, T4)
TOWS Analysis
21. Portor’s 5 Force Analysis
EXISTING MARKET
SCENARIO (High)
Large Industry Size
Strong Competitors
Rapid Growth in Industry
SUPPLIERS (High)
High Level of Competition among
Suppliers
CUSTOMERS
(Low)
Limited Choices
Product is important
Large Number of Buyers
THREATS (NEW ENTRANTS) (Low)
Brand name is important
High Capital and Advance
Technologies are Required
THREAT OF SUBSTITUTE
PRODUCTS (Moderate)
Substitute products are
inferior and slow in reaction
High cost of switching
22.
23. 2018
Total Assets
Deposits
Advances
Investments
Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings Per Share(Rs.)
Number of Branches
Number of Employees
1,035,025
832,152
477,507
301,324
103,762
24,415
17,563
13.05
1289
16457
2017
Total Assets
Deposits
Advances
Investments
Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings Per Share(Rs.)
Number of Branches
Number of Employees
944,583
727,465
475,243
217,643
94,142
21,300
17,562
13.05
1,287
16,248
2016
Total Assets
Deposits
Advances
Investments
Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings Per Share(Rs.)
Number of Branches
Number of Employees
817,758
624,939
412,987
170,822
81,367
23,001
15,459
11.49
1,276
15,441
National Bank’s Annual Reports
Financial Highlights
Rupees in Million
Excel Link
34. Matching Key Factors
to Formulate
Alternative Strategies
Internal External Resultant strategy
Large number of branches(1249 local
+ 18 int)
+ Consumer banking
= Should enter in consumer banking
87% growth in advances in 2008
+ Leasing business
= Entry in Leasing business
Lack of technology + Exit of competitors =
Pursue horizontal integration by buying
competitors facilities
Limited Investment.466 bn vs 173 bn
+
New marketing strategies for new
products
= invest money in new projects
Employee benefits +
One man show in branches
=
Developing new employee benefits packages
to decrease union threats
35.
36. Recommendations
• Company should come up with the
products that have minimal side
effects to stay in the market and
reduce the issue of copy.
• For reducing the employee turnover,
company must focus on the proper
recruitment and Selection.
• Government should focus on the
current condition of pharmaceuticals
and health care companies to ensure
the health of public.
• Company should focus on the
technological change, i.e., online
presence and e-commerce.