Ziska pharmaceuticals

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AN ANALYTICAL STRATEGIC MANAGEMENT REPORT ON ZISKA PHARMA
1.0 Company Introduction
Ziska Pharmaceuticals Ltd. is one of the leading Pharmaceutical Company committed to produce
medicine strictly under cGMP compliance and extend its services to all our valued Customers
through a healthy network all over Bangladesh. Ziska Pharmaceuticals Ltd, started its journey way
back in 1989.
Corporate Information:
Company Name Ziska Pharmaceuticals Ltd.
Factory Location Karol Surichala, Safipur, Gazipur
Head Office Nurul Tower, 34- Purana Paltan Line, Dhaka- 1000
Corporate Setup: Private Limited Company
Manufacturing Areas 146,500 Ft
Established Year 1986
2.1 Vision: To be a credible pioneer in changing the practice of medicine.
2.2 Mission:
A voyager in healthcare
We have been steadfast in improving the quality of life in the society since the inception of the
company. At present, Ziska creates innovative medicines that helps millions within the national
boundary and also beyond it. Ziska Pharmaceuticals Limited will continuously improve its
technology, products and services by applying creativity to all aspects of its business. All members
of Ziska pharmaceuticals will pursue the following guiding principles:
 Trust: Establishing relationships with all stakeholders based on strong mutual trust and
respect.
 Quality: Providing the best products with uncompromised quality.
 Ethics: Honor high ethical standards in all endeavors.
 Environment: Respect nature, and strive to protect and improve the global environment.
3.1 Revised Vision: Our vision is to be to be a global leader of medicine sector bringing
innovation and great integration to its consumer.
3.2 Revised Mission: We are providing a responsible promising healthcare solution to our
community as well as in different countries by building an ethical, obligated trust worthy
relationship with our loyal customers through creating innovative medicines. Ziska

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Pharmaceuticals Limited believes in continuous research for discovering new medicine with
transparency so that people feel to live in peace.
4.0 Key strategy applied by Ziska Pharmaceutical:
First mover advantage in some products made a profitable company successfully.
Ziska Pharmaceuticals has given more priority in developing new product which brought first
mover advantage in marketing strategy. So, it can be said that the company is trying to follow
product development strategy. One of the sales manager said it has large distribution channel.
As a result, the company was able to achieve profitably by applying forward integration strategy.
Ziska holds the ‘Pioneer ship’ in bringing highest number of first ever in BD products.
Dementia, Methylprednisolone injection, Monoxide, Methoxsoler, Adepolane and Benzyl
peroxide gel, Melatrin cream, MM kit, Dixieland etc. these products are first launched by Ziska.
This can be the key reason for which Ziska has overcome rate of revenue, assets as well as
inventory turnover and now it holds a stable profit margin.
5.0 Porter’s five-forces model:
5.1 Rivalry among competing firms (High):
In BD, there are many large pharmaceutical companies doing business successfully. Such as
Square, Beximco, Incepta Opsonin, Renata etc. In pharmaceuticals industry, number of
competitors compete with each other much. For example, when one pharmaceuticals company
launches new medicine, existing companies are also enforced to produce the same type of
medicines to take advantage of the opportunity and it was happened with Ziska Pharmaceuticals
that when it launched Soluperea and minoxidil in the market, all the rival firms produced the
same products as well. Brand leaders like Square, Beximco captured and controlled the market
and Ziska lost its first mover advantage.
5.2 Potential entry of new competitors (High):
It is also very easy for a company to enter into the industry, if it has enough capital. But, it is very
tough for a company to capture or control the market for the threats of competition and that’s why

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Ziska is not getting enough attraction from the customers and it is a big challenge for the company
to gain customers loyalty since cultural reliability has been gained by the other popular companies.
5.3 Potential development of substitute product (high):
Now-a-days different kinds of products are introducing to the patients in BD. According to the
DGDA at present about 269 allopathic 205 ayurvedic 266 unani 27 herbal and 79 homeopathic
drug manufacturing companies operating in the country. As a result, patients have number of
choices regarding medication and sometimes homeopathic treatment is becoming more reliable to
the patients in many cases. So Ziska Pharmaceutical has also high rivalry on this issue. For
example, it has vitamin tablet and hair spray which have very potential substitutes as many patients
prefer herbal vitamin dosage instead of vitamin tablets and choose homeopathic treatment for hair
loss.
5.4 Bargaining power of suppliers(Low)
Although Bangladeshi sector is not fully sufficient, suppliers have not much bargaining power,
because there are so many suppliers from different countries like china India Germany, UK, France
Italy, Denmark etc. These suppliers are supplying raw materials. Because of having many
suppliers, pharmaceutical companies can easily switch to other suppliers.
It also depends on the product type. Because, for some products, company has no bargaining power
when these are restricted from the govt. to maintain API. On the other hand, when there is less
rules and regulations for manufacturing some products, the company can easily switch to different
suppliers for raw materials.
There are also many other products for which BD Pharmaceuticals depends upon organic
chemicals, those are easy to produce and comparatively cheaper in our country. So, the suppliers
of those chemicals have almost zero or little bargaining power.
So, from the analysis, it can be concluded that Ziska pharma has no threat for bargaining of
suppliers and bargaining power of suppliers is not so high.

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5.5 Bargaining power of consumers (Moderate):
In BD, there is a trend of influencing physicians to prescribe a particular name of the company’s
product but not written by the generic name of that product. That’s why, sometime consumers
don’t have any bargaining power. On the other hand, all the company have almost same price of
the product consumer can switch easily to substitute product.
So, the bargaining power of consumers is moderate.
6.0. SWOT Analysis
6.1. Key Strengths of Ziska:
1. Factory Location is very near to Dhaka: The main manufacturing site spread across a
22-acre area located 50 KM away from the capital city Dhaka, which houses facilities for
manufacturing oral solids, oral liquids, topical preparations, small and large volume
parenteral etc. More over Ziska has separate production facilities for cephalosporin’s,
penicillin and biotech product. The site has its own utility infrastructure to ensure adequate
generation and distribution of electricity with an installed capacity of 10 MW, besides
having water purifying and liquid nitrogen generation facilities. So, it can be said that
manufacturing facilities is a great key strength of Ziska Pharmaceuticals Ltd.
2. Highest number of new products were introduced for the first time: Ziska holds the
"Pioneer ship" in bringing HIGHEST number of first-ever in Bangladesh products. Ziska
pharmaceuticals ltd is the first company in Bangladesh who established segregated
manufacturing facilities for penicillin, cephalosporin and other general products. In 2010,
Ziska first launched Dementa (Memantine Hydrochloride) which is the most effective
agent for the treatment of Alzheimer’s disease. Ziska is the first company to launch a
product, MM Kit (Mifepristone & Misoprostol combination), which is now saving
millions of women’s life each year by providing a safe medical termination of pregnancy.
Again Ziska took the privilege to introduce an emergency contraceptive pill Peuli
(Ulipristal Acetate 30mg), which can prevent unwanted conception up to 5 days. So,
Ziska has a first mover advantage.

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3. Largest Pipeline in Factory for producing some distinguish products: It has great
advantage of having the largest pipeline for manufacturing penicillin, cephalosporin and
other general products.
4. Manufacturing Facilities has been designed by the latest recommendations of cGMP
of WHO, TGA and MCA: Each of the production blocks is equipped with most modern
state of the art cGMP complaint equipment’s. In the process of production operation Ziska
has a unidirectional flow of man and materials from dispensing to packing, while GMP
complaints well documentation made the thing perfect and meaningful in respect of quality.
On the other hand, the purified water and WFI are being used through online looping
system in the product to product manufacturing process as required.
5. Larger manufacturing Factory than many other companies: The factory land of Ziska
is 3.5 acres, when seven separate building all of which are in double height building at 18
ft., out of which two building is multi storied cover about 2.5 acres which is enough large
capital and larger than many other companies.
6. Strong Distribution Network all over Bangladesh: Ziska Pharmaceuticals Ltd. is one of
the leading Pharmaceutical Company committed to produce medicine strictly under cGMP
compliance and extend its services to all valued Customers through a healthy network all
over Bangladesh. And for that the company is carrying out the medicines to the doorstep
of the people, through a strong distribution network all over Bangladesh.
7. Quality Medicine at a competitive Price: Ziska is selling different types of medicine
products at competitive price at reasonable price inn local market as well as foreign market.
8. Efficient and qualified technical manpower at minimum cost: Ziska has qualified
employees with whom the company is able to do outstanding performance.
9. Continuous research and development on new molecule development: Ziska believes
in continuous process of research and development. A dedicated team of pharmacists,
supported by a state-of-the-art computerized system is engaged in continuous development
of products and process.

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6.2 Weakness of Ziska Pharmaceuticals:
1. Less Organized: The company structure of board of directors and other branches areas are
less organized.
2. Absence of Advanced Technology: Advanced technology to advent innovative medicines
are absent where world is going fast on with the great use of technologies in inventing
medicine.
3. Lower Customer Loyalty: Although the company has so many new innovations for the
first time in Bangladesh pharmaceuticals industry, it could not able to achieve customer
loyalty.
4. No Market Share: The company do not go to be incorporated and it has no market share
in the market stock.
5. Dependency on Imported Raw Materials: It has much dependency on import raw
materials which becomes a weakness of the company.
6. Low Investment in Export of Products: Although investment opportunity in export has
much aspiration, the company has very low investment in exporting products.
7. Benchmarking Approach is not Created: Ziska has not adopted a good benchmarking
approach to capture the market, which can bring a threat in future for the company other
brand companies have a very good structured benchmarking procedure to stay long term
in the market.
8. Obscure Marketing Activities: The company’s marketing is much visible in the market
which makes the company ambiguous to the consumer.
9. Lack of Brand Image: While Square, Beximco, Incepta etc. companies are holding a very
good brand image and absorb the customer loyalty, Ziska is lagging behind for not having
a brand value.
10. Lack of Modern Drug Testing Laboratory: Modern drug testing laboratory is not
available in the factory.

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6.3 Key Opportunities:
1. Gaining market Share: Ziska can gain from the existing rivals by offering new innovative
products.
2. Possible New Product Units: As Ziska is doing continuous research & development with
experts it can achieve a new product unit in the market.
3. Financing Back up from Financial Institutions: The company can take loan from Bank
and can invest for expanding business size or export market.
4. R & D activities may be initiated with external support: There are many foreign
agencies who are encouraging to do research and govt. also emphasis to invest R & D
sector, so the company can initiate some R & D activities with that external supports.
5. Students of Pharmacy department is increased: The interest of obtaining degree in
pharmacy is getting high day by day. This can be a good opportunity for the company to
get skilled and well knowledge employee.
6. Sufficient Manpower: Pharmaceutical sector is the largest white-collar demanding
employment sector of the country. A large number of technically skilled personnel are
interested to involve in this sector in Bangladesh. So, if Ziska expand its business human
resource will be available to contribute with the company.
7. Intensive Government Support: Bangladesh government recently gave facility to them
who wants to install advance manufacturing base in their production promises. This is
helpful for the company to become self-efficient in maintaining international standard
drugs.
6.4 Threats:
1. Inflation Risk: Day by day, price of raw materials is increasing. So, inflation risk can arise
big threat for the company.
2. Large Number of Competitors: There is a huge competition among Pharmaceutical
Companies. So, rivalry completion is very high.
3. R & D efforts can become less effective: Bangladeshi Pharmaceuticals hampered by lack
of enabling regulatory requirements of R & D efforts. Because of increasing demands for
different technology based medical products few companies have started to produce
medical devices also. Active pharmaceutical ingredients (API) are the principal

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constituents for medicines. Unfortunately, major percentage of demand for APIs is fulfilled
through import.
4. Less number of innovations: Due to lack of knowledge the company has a big gap of
inventions. Research based idea is not implementing, that is why the company may face
problem in future.
5. Tariffs and International Trade Restrictions: Trade Related Aspects of Intellectual
Property Rights (TRIPS) is an international agreement administered by the World Trade
Organization (WTO). According to this agreement, all signatory parties are bound to
include twenty years’ product patent protection for pharmaceutical products in their
domestic legislation.
6. Currency Risk: Exchange risk may fall down economic forces.
7. Increasing Interest Rate: Day by day, interest rate of loan increasing which will decrease
the opportunity of drugs production. For this selling price of drugs is increasing day by
day.
8. Threats of New Entrants: Countries like China can produce drugs with a very low costs.
This situation can hamper overall market of the company, reduced its differentiation
capacity.
6.5 SO Strategies:
1. Increase knowledge about industry, discuss with doctors and add more researchers to
research more & more and expand business getting govt. help through fulfilling
requirements of API. (S9, O7)
2. Developing more innovations in products get opportunity to enter into share market
attracting rivalry companies. (S9, O1)
3. Include an internship department in the factory to broaden medicine investigations
researches as many pharmacy students will very much interested to do so at minimum
costs. (S5, O4)
6.6 WO Strategies:
1. Add new advanced technology taking loan from financing companies. (W2, O3)

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2. Develop marketing strategies with international standards by recruiting large number of
manpower in marketing department. (W8, O6)
3. Train up marketing executives and create brand value through achieving customer loyalty
by attracting general people. (W9, O4)
4. Invest more in laboratory test and export of products by taking help from the govt. (W5,10,
O7)
5. Invest in share market initiating R & D activities (W4, O4)
6. Make the organogram of the company newly takin a good benchmarking approach. (W1,
W7, O2, O6)
6.7 ST Strategies:
1. Regain first mover advantage in the innovation of products by doing lots of marketing to
reduce the threat of having less number of innovations. (S2, T4)
2. Make sense in the head of consumer that it has very good quality products maintaining
cGMP criteria through advertising using distribution channel network to minimize inflation
risk at minimum level. (W4, W6, T1)
3. Using manufacturing facilities insure the development of R & D as well as win-win
competition with the rival companies. (S1, S3, S5, T2, T3)
6.8 WT Strategies:
1. Invest more in financing to capture share market, make strong marketing department. (W4,
T2, T7)
2. Install modern technology in laboratory. (W6, W10, T5, T3)
3. Increase brand value through marketing to minimize different risks. (W3, W9, T1, T,6, T7)

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8.0 The External Factor Evaluation(EFE) Matrix
Key External Factors Weight Rating Weighted Score
Opportunities:
1. Gaining market Share
2. Possible New Product Units
3. Financing Back up from Financial Institutions
4. R & D activities may be initiated with external support
5. Students of Pharmacy department is increased
6. Sufficient Manpower
7. Intensive Government Support
0.07
0.05
0.09
0.08
0.06
0.05
0.08
2
2
4
1
2
3
2
0.14
0.10
0.36
0.08
0.12
0.15
0.16
Threats:
8. Inflation Risk
9. Large Number of Competitors
10. R & D efforts can become less effective
11. Less number of innovations
12. Tariffs and International Trade Restrictions
13. Currency Risk
14. Increasing Interest Rate
15. Threats of New Entrants
0.10
0.08
0.03
0.08
0.06
0.07
0.06
0.04
4
4
1
2
2
3
2
1
0.40
0.32
0.03
0.16
0.12
0.21
0.12
0.04
Total 1 2.51
Here, the Ziska Pharma’s the EFE matrix is showing that the company’s total weighted sore is
2.51 which means the midpoint. So, the company is doing well, of it really care about its high
weighted score of threats large number of competitors and inflation risk. On the other hand, the
company have an opportunity to gain market share which weights high by taking financial supports
from bank and govt. as well.

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9.0The Internal Factor Evaluation(IFE) Matrix
Key Iternal Factors Weight Rating Weighted Score
Strengths:
1. Factory Location is very near to Dhaka
2. Highest number of new products were introduced for the first time
3. Largest Pipeline in Factory for producing some distinguish
products
4. Manufacturing Facilities has been designed by the latest
recommendations of cGMP
5. Larger manufacturing Factory than many other companies
6. Strong Distribution Network all over Bangladesh
7. Quality Medicine at a competitive Price
8. Efficient and qualified technical manpower at minimum cost
9. Continuous research and development on new molecule
development
0 .07
0.05
0.06
0.03
0.06
0.08
0.06
0.02
0.05
4
3
3
4
3
4
4
3
4
0.14
0.15
0.18
0.12
0.18
0.32
0.24
0.06
0.20
Weakness:
1. Less Organized
2. Absence of Advanced Technology
3. Lower Customer Loyalty
4. No Market Share
5. Dependency on Imported Raw Materials
6. Low Investment in Export of Products
7. Benchmarking Approach is not Created
8. Obscure Marketing Activities
9. Lack of Brand Image
10. Lack of Modern Drug Testing Laboratory
0.05
0.08
0.10
0.13
0.02
0.04
0.01
0.09
0.04
0.03
1
1
1
1
2
1
2
1
1
1
0.05
0.08
0.10
0.13
0.02
0.04
0.02
0.09
0.04
0.03
Total 1 2.19
Ziska Pharma’s IFE matrix telling that weighted score of the company is below average which
indicates that company needs to become more conscious about its internal weakness. The company
must go for market share, obscure marketing activities and lack of brand image makes it down as
well as insecure whether it can continue business or not in future.

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10.0 The Competitive Profile Matrix(CPM)
Ziska Pharma Incepta Pharmaceuticals Square Pharmaceuticals
Critical Success Factor Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score
Brand Reputation 0.13 1 0.13 4 0.52 4 0.52
Market Share 0.15 1 0.15 3 0.45 4 0.60
Advertising 0.08 2 0.16 2 0.16 4 0.32
Range of Products 0.10 3 0.30 3 0.30 3 0.30
Product Quality 0.08 4 0.32 4 0.32 3 0.24
Customer Loyalty 0.10 1 0.10 3 0.30 4 0.40
Strong Online Presence 0.10 2 0.20 3 0.30 4 0.40
Global Expansion 0.05 2 0.10 3 0.15 4 0.20
Organization Structure 0.06 2 0.12 3 0.18 3 0.18
Financial Position 0.15 3 0.45 4 0.60 3 0.45
Total 1.00 2.03 3.28 3.61
It is clearly shown here that the CPM analysis reveals, Square Pharmaceuticals Ltd. is the strongest
company among these three. Square has all over strengths in market share, advertising, brand
reputation, and customer loyalty. On the other hand, Incepta prevails a good position in the
industry. But, the Ziska Pharma presents the weakest position comparing with other companies.
The company should create its strategies according to their strengths and weakness and improve
its ratings perusing most significant steps in the industry.
11.0. Findings:
 The company does have less recognition in the industry
 Sales of product range 1 to 8 items
 Some products launched in the market for the first time but could not keep up first
mover advantage continuously
 Woman related products are advertised more, so it can be said that the company is
following diversification focus strategy on women health care product
 Financial position is good since it has no negativity in liability section
 Distribution channel in different districts like Dhaka, Barisal, Lakshmipur, Dinajpur,
Bogra.

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 The company has enough land property
 The company might follow the forward integration strategy, as it is said that it has a
strong distribution channel. But, how it is applied, it is not proven, rather the interview
of the retailer’s states that Ziska has very few products and not very popular.
 The company has some great challenges such as intense competition, market specific
risk, currency volatility, restrictive legislations etc.
12.0 Recommendation:
1. Although the employees of the company tell that the company adopts forward integration
strategy, it should develop its forward integration strategy as well as has to adopt backward
integration. The question is how it can gain control over its suppliers, the following procedures
can be applied:
o To ensure good quality of products, select suppliers who are enough qualified and
capable to meet the company’s specific needs for long time.
o Build a good relationship with suppliers by considering contracts, service level
agreements, placing orders in good time, being clear about deadlines and paying on
time. And make realization to the suppliers that hoe important the business of the
company so that suppliers can think that they will also be benefitted more in future by
providing good service.
o Use updated technology improve efficiencies and review the suppliers’ performance to
make a good deal with them.
2. The company must go for market share by enlisting itself into stock exchange. Because, market
share will put the company at a competitive advantage. The company can gain market share
by:
o Bring more innovative products, discussing with scientists and doctors
o Strengthen customer relationship by sharing the values and views of the company
through face to face conversation, online presence, media coverage etc.
3. The company should develop its marketing strategy through market development. For
example,
o The company may go for geographical expansion in different countries. Globe
Pharmaceuticals Chairman Harunur Rashid thinks the country's pharmaceuticals sector is

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headed for better days and this industry has the potential to earn more foreign currency
than the garment sector. – According to the BD news. So, Ziska can export products
internationally.
o Ziska can develop its existing products newly through better packaging, finding new uses
of the products. Try to attract non users to buy its products increasing advertising efforts,
adjusting the price up or down and promoting other uses to the customers. Add new features
in the products like modify, reduce and combine products.
4. Adopt a related or unrelated diversification strategy. For example, company can launce bottled
purified water as a new product. It will also be advertising policy for the company. The
company can also adopt diversification focus by launching child health care products like
nutritious baby milk, cereal etc.
13.0 Conclusion: So, the analysis on Ziska Pharmaceuticals ltd gives a clear strategic plan
development that how a company can adopt its strategic planning tools by using different
analytical tools. Ziska Pharma has some internal strengths and weaknesses which should be
focused more than external opportunities and threats. Then, company can achieve its target vision
and do better in the market. To keep continue in the market Ziska should develop its marketing
strategy by the recommended ways.

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Reference:
Contact Person:
1. Debobroto Kollan
Sales area Manager of Ziska, Barisal Division
Phone: 01937-999086
2. Mr. Satter
Sales Area Manager of Ziska, Dhaka Division
Phone: 01937-999020
Email: satter@ziskapharma.com
Internet:
http://www.ziskapharma.com/
http://www.thedailystar.net/business/pharma-sector-grow-15pc-year-study-
1429024
http://businessnews24bd.com/category/industry/pharmaceuticals-industry/
https://futurestartup.com/2017/07/27/bangladesh-pharmaceutical-industry-
101/
Book: Strategic Management, by FRED R DAVID

Ziska pharmaceuticals

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