3. SWOT Analysis of Square Pharmaceuticals will conduct the
internal and external strategic analysis which in other words
called SWOT analysis.
The acronym SWOT stands for strengths, weaknesses,
opportunities, and threats. This analysis can be used to
develop future strategies for Square Pharmaceuticals.
4. Weakness
Non-availability of modern tech
Time-consuming decision-making process
Wrong method of collecting resources and inventory
management
Low profitability and profit growth
5. Strength
•Highly experienced Executives.
•Good reputation with a strong brand image.
•Skilled and experienced staff members.
•Large customer Base.
•Product development capabilities.
•Resources (land & labor) are available in Bangladesh.
•Capability of inventing medicine benchmark.
•Visible presence in the market.
•Strong regulatory team.
•Lower employee mobility.
6. Threats
Currency devaluation.
Growing competitors in the pharmaceutical industries.
Innovative products offered by other companies.
Inadequate Power supply.
Price hike of raw materials (Inflation).
Inadequate supply of power.
7. Opportunities
Intensive Government support
In the growth stage of industry life cycle
Financing backup from financial institutions
Other earning source – foreign exchange facilities from
reputed foreign bank can gear up its revenue
Invention of new products
Gaining market share from the existing rivals by offering
new innovative product
Global market.
8. Strength of Square Pharmaceutical :
Highly Experienced Executives :
It retains highly experienced executives to keep all of
its businesses functional.
Good Reputation with a Strong Brand Image :
As one of the oldest companies in Bangladesh, it
has developed a strong brand image in the pharmaceutical industry.
Skilled and experienced staff members :
Square Pharma has around 6710 employees most of
whom are highly skilled and experienced.
9. Large customer Base :
It has a large customer base and to support that base
it developed the capabilities to produce different types of generic
medicines.
Resources (land & labor) are available in Bangladesh :
With low labor cost, Square Pharmaceutical can
gather skilled and experienced workers very easily.
The Invention of Medicine Benchmark:
As they have been developing and providing quality
medicine, they are able to create the benchmark in the medicine
industry.
10. Strong Visible Presence in the Market :
Largest market share shows a strong existence of
Square Pharm in the market.
Strong Regulatory Team :
The strong regulatory team of the company
moderates all of the operations of the company.
Low Employee Mobility :
The employee mobility is very low which shows
strong company culture.
11. Weakness of Square Pharma:
[Internal Strategic Analysis]
Non-Availability of Modern Tech :
It as been using old technology to manufacture
medicines.
Time-consuming Decision-making Process :
As they have been doing well from the beginning, the
decision-making process they follow is much time consuming than other
companies.
Environmental pollution :
For producing purpose, they are polluting water, and
soil in the area where they setup their factories.
12. Wrong method of collecting resources and inventory management :
They do not spend much for the research and
development department.
Low profitability and profit growth :
As the price of raw material is increasing, the profit
growth is not increasing, so the profitability is staying low. Bigger unit cost
and bigger production cost for purchasing raw materials from specific
sources only.
Smaller Sales Force :
The sales force is not relatively higher than its
competitors.
13. Lack of sufficient promotional effort :
They do not give a strong effort to the promotional
campaigns.
Underutilized plant capacity :
The plant capacity is not higher than its competitors.
Dependency on foreign products :
Square 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.
14. Opportunities for Square Pharmaceuticals
[External Strategic Analysis]
Intensive Government Support :
Pharmaceutical industry is growing day by day in
Bangladesh. The government is giving intensive support to this
industry toward the future growth.
In the Growth Stage of Industry Life Cycle :
The industry is in the growth phase. There is a
huge possibility of growing further.
15. In the Growth Stage of Industry Life Cycle :
The industry is in the growth phase. There is a
huge possibility of growing further.
Financing backup from financial institutions:
As the industry is in the growth of its life cycle
and the govt. gives support, the financial institutions are being
supportive too.
Other Earning Source :
Foreign exchange facilities from reputed foreign
bank can gear up its revenue.
16. The Invention of New Product :
The SQUARE PHARMA has strong research and development
department.
Gaining market share from the existing rivals by offering new innovative
product.
Global market :
The industry is entering to the ever increasing global market;
Square pharma’s market share is increasing as well in the global market.
17. Threats for Square Pharmaceuticals:
[External Strategic Analysis]
Currency Devaluation :
As the square pharmaceutical export its products to the
global market, the currency devaluation may decrease the profit margin.
Growing Competitors in the Pharmaceutical Industries :
As the industry is being supported by the government and
it’s also having the positive environment for the growth, the competition
is increasing gradually.
18. Innovative Products Offered by Other Companies :
There are increasing offering of innovative products
in the industry.
Inadequate Power Supply :
Bangladesh has a shortage of power supply which is
a major barrier to the growth of pharmaceutical industry.
Price Hike of Raw Materials (Inflation) :
The price of raw materials is increasing which will
increase the production costs.
