Abbott Laboratories (Pakistan) is a pharmaceutical company founded in 1888 that has been operating in Pakistan since 1948. It has over 1,500 employees and manufacturing facilities in Karachi. The company produces pharmaceuticals, nutritional products, diagnostics, and medical devices. Abbott's main competitors in Pakistan include GSK, Searle Pakistan, Sanofi Aventis, Ferozsons Labs, and Pfizer. An analysis of Abbott's strengths, weaknesses, opportunities, and threats was conducted, as well as financial analysis showing steady growth from 2012-2017. Recommendations included focusing on products with fewer side effects, reducing employee turnover, engaging with the government, and adopting new technologies.

2. Abbott Laboratories (Pakistan)

3. Contents
Industry & Company Profile and Key People
Competitors
IFE and EFE
CPM
Portor’s Five Forces
Financial Analysis
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’s 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)

7. Company Profile
Started in 1888 by Dr.
Wallace C. Abbott
1948 started in Pakistan
Now, Business in 130+
countries
Employees 1500
Manufacturing
Facilities at Landhi
and Korangi, Karachi
All top Pharma
Companies are
competitors
2nd largest market
share
Share Value = PKR
665.70 (PKR 5 Δ)

8. Operations in 2017

9. Company Profile
• Following are the main distributes of
Abbott:
• Premier Agency Muslimabad, Karachi
• Babar Medicine, Lahore
• Nadeem Traders, Peshawar.
• Baloch Enterprise, Multan
• D.S Pharma, Rawalpindi.

10. Top
Competitors
Competitors:
GLAXOSMITHKLINE
SEARLE PAKISTAN
SANOFI AVENTIS
FEROZESONS LABS
PFIZER
GETZ

11. 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.

12. 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

13. 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.

14. 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

15. Proposed
Mission
Mission:
• To deliver consistently
superior quality
pharmaceutical and
healthcare products and
services produced under
high equipment facilities
which contribute
significantly to improve
the quality life of
consumers and
protection of
environment.

16. Mission Statement Evaluation
Items Yes/No
Customers Yes
Products Yes
Markets No
Technology Yes
Concern for Survival, Growth, and Profitability Yes
Philosophy Yes
Self-Concept No
Concern for Public Image Yes
Concern for Employees No

17. 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

18. 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

19. 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
2. Exchange Rate Fluctuation
3. Strict Rules and Regulations
4. Threat of Substitutes like Herbal, and Homeopathic products.
5. Increasing issues of Copy

20. 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
Entrance of New Multinational Firm 0.15 3 0.45
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

21. Competitive Profile Matrix

22. Competitive Profile Matric (CPM)
ABBOTT GSK SEARLE
PAKISTAN
Critical Success Factors Wt. Rating Score Rating Score Rating Score
Product Quality
0.12
4
0.48
4
0.48
4
0.48
Price Competition
0.08
3
0.24
3
0.24
3
0.24
Management
0.12
2
0.24
3
0.36
3
0.36
Financial Position
0.08
3
0.24
3
0.24
2
0.16
Customer Loyalty
0.1
4
0.4
4
0.4
3
0.3
Market Share
0.08
3
0.24
3
0.24
2
0.16
Global Expansion
0.08
3
0.24
4
0.32
4
0.32
Research & Development
0.17
3
0.51
4
0.68
3
0.51
Brand
0.1
3
0.3
4
0.4
3
0.3
Employee Turnover
0.07
2
0.14
2
0.14
2
0.14
Total 1 3.03 3.5 2.97

23. TOWS Analysis
• Threat
• Opportunities
• Weaknesses
• Strength

24. 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)
TOWSAnalysis

25. Portor’s 5 Force Analysis

26. 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

28. Financial Highlights
Rupees in Million
Total Assets 19,236.30
Total Revenues 26,088.20
Total Liabilities 4,880.40
Shareholders' Equity 14,355.80
Earnings Per Share(PKR) 42.95
Total Assets 17,645.20
Total Revenues 23,387.90
Total Liabilities 3,051.90
Shareholders' Equity 14,593.20
Earnings Per Share(PKR) 41.05
Total Assets 16,488.30
Total Revenues 21,140.40
Total Liabilities 3,539.00
Shareholders' Equity 12,949.20
Earnings Per Share(PKR) 36.56

29. Excel Link
19236.3
17645.2
16488.3
13765.6
11168
9329.9
26088.2
23387.9
21140.4
19692.4
17217.3
15216.3
4880.4
3051.9 3539
2894 2420.7 2622.5
0
5000
10000
15000
20000
25000
30000
2017 2016 2015 2014 2013 2012
Total Assets Total Revenues Total Liabilities

30. Excel Link
14355.8 14593.2
12949.2
10871.6
8747.3
6707.4
0
2000
4000
6000
8000
10000
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2017 2016 2015 2014 2013 2012
Shareholders' Equity
42.95
41.05
36.56
28.72
25.83
21.35
0
5
10
15
20
25
30
35
40
45
50
2017 2016 2015 2014 2013 2012
EPS (PKR)

31. Ratios

32. 2017 2016 2015 2014
ROE 29.05 29.2 31.11 28.71
ROA 22.8 23.57 23.71 22.59
Gross Margin 38.67 40.05 38.86 38.34
0
5
10
15
20
25
30
35
40
45
INMILLIONSOFPKREXCEPTPERSHARE Ratios

33. 2017 2016 2015 2014
Net Income Margin (%) 16.1 17.2 16.9 14.3
Growth (%) 4.6 12.3 27.3 11.2
0
5
10
15
20
25
30
INPERCENTAGE Ratios

35. 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 employees
turnover, company must focus on
the proper recruitment and
Selection process.
• Government should focus on the
current condition of pharmaceutical
and health care companies to
ensure the health of public.
• Company should focus on the
technological change, i.e.,
innovative technologies, online
presence and e-commerce.

36. THANK YOU
ANY QUESTION???