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Transcript of abbott pharma ppt
Ajeet Kumar 1325145
Manesh Kumar 1325162
Kanwal 1325158Shakeel Ahmed
1325177Bakhat Hussain
1325151
November 30, 2013
Overview
Brief History
Brief History• Abbott Laboratories is a diversified pharmaceuticals
and healthcare products company. Abbott was founded in 1888 by Chicago Doctor, Wallace C. Abbott
• 6th largest global pharmaceutical provider
• Headquartered in Abbot Park, illinois
• 90,000 Employees in more than 130 Countries
• One of oldest most successful pharmaceutical companies in the U.S.
• Major operations in the US, Netherlands, Germany, Japan, Italy, France, Canada, UK and Spain.
Wallace C. Abbott
1st location – Abbott’s Home
Abbott LaboratoriesAt a Glance
In 2011 Revenue: $38.851 Billion Operating Income: $5.751
Billion Net Income: $4.728 Billion Total Assets: $60.276 Billion Total Equity: $24.526 Billion growth – last 10 years
Brief Descriptions of Products & Services
Products and Services of the Company
Pharmaceuticals : Localized Innovation
Nutrition: Worldwide Leader In Nutrition
Diagnostics: Pioneering Medical Diagnostic
Animal Health Products
Medical Devices
Major Business Components
• PHARMACEUTICALS– Arinac,Bejectal, Burnol, Cecon, Klaricid, Lucrin,
Protium, Surbex Trividox, Tronolane
• DIAGNOSTICS– Assays (AIDS, hepatitis,cancer, thyroid,
fertility, Clinical Chemistry, Hematology, etc.)& instruments (e.g, AxSYM)
– Glucose monitoring
• Medical Devices– Anesthetics, delivery systems, injectables
generics, IV solutions, imaging, blood vesselsurgical closure devices
• NUTRITIONALS– Similac, Isomil, Ensure, Glucerna, Pedialyte
Vision &Mission
Vision
To be the Most Admired Healthcare Company in Pakistan.
Mission
To deliver consistently superior products and services which contribute significantly to improving the quality of life for consumers.
•Product & Service,•Customers,•Concern for public image,•Concern for Survivalgrowth•Philosophy
Modified Mission Statement:
To deliver consistently superior products and services globally through combination of R&D ( advanced technology) and positive workforce, which contribute significantly to improving the quality of life for consumers
Missing Components
MarketTechnologyEmployeesSelf Concepts
Space Matrix:
5 -34 -35 -26 -54 -3
4.8 -3.2
-3 6-2 6-3 4-3 5-3 5
-2.8 5.2
Control over Suppliers and Distributors Profit Potential
Market Share Growth PotentialProduct Quality Financial Stability
Environmental Stability (ES) Average Financial Strength (FS) Average
Competitive Advantage (CA) Average Industry Strength (IS) Average
Customer Loyalty Ease of Entry into MarketTechnological Know-how Resource Utilization
Competitive Advantage (CA) Industry Strength (IS)
Working CapitalCash Flow
Competitive PressureBarriers to Entry into Market
Environmental Stability (ES)Rate of InflationTechnological ChangesPrice Elasticity of Demand
Financial Strength (FS)Return on InvestmentLeverageLiquidity
Space Matrix:
y-axis = FS + ES = 6.0 + (-3.2) = 2.8x-axis = CA + IS = -2.8 + (+5.2) = 2.4
6
5
4
3
2
1
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6
-1
-2
-3
-4
-5
-6
FSConservative Aggressive
Defensive Competitive
IS
ES
CA
Competitive Profile Matrix
CPM Abbott GSK Pfizer
Critical Success factors Weight Rating Score Rating Score Rating Score
Advertising 0.06 2 0.12 3 0.18 3 0.18
Product Quality 0.09 3 0.27 3 0.27 3 0.27
Price Competitiveness 0.07 2 0.14 3 0.21 3 0.21
Management 0.12 3 0.36 3 0.36 3 0.36
Financial Position 0.08 2 0.16 3 0.24 3 0.24
Customer Loyality 0.06 2 0.12 3 0.18 3 0.18
Global Expansion 0.10 3 0.3 3 0.3 4 0.4
Market Share 0.08 2 0.16 3 0.24 3 0.24
Research & Developnent 0.17 2 0.34 2 0.34 3 0.51
Employee Turnover 0.07 3 0.21 4 0.28 3 0.21
Brand 0.10 2 0.2 3 0.3 4 0.4
Totals 1.00 2.38 2.9 3.2
Competitive Profile Matrix
INTERNAL FACTOR EVALUATION MATRIX
&
EXTERNAL FACTOR EVALUATION MATRIX
STRENGHTS WEIGHT RATING WEIGHTEDAVERAGE
1. Global presence 0.10 4 0.402. Strategic alliances and acquisitions 0.15 4 0.35
3. Diversified portfolio 0.07 4 0.304. High margins 0.07 4 0.255. Over 100 year experience 0.08 4 0.266. Strong research and development 0.07 3 0.20
7. Innovation Leader 0.07 3 0.20 8. Strong brand name 0.06 4 0.28
WEAKNESSES
1. R & D investment not to the level of competitors
0.05 2 0.10
2. Marketing expenses lower than competitors 0.05 2 0.10
3. Labor turnover 0.07 1 0.054. Expiring patents 0.05 2 0.105. Declining market share 0.06 2 0.106. Allegations of illegal marketing 0.05 2 0.10
TOTAL 1 2.79
INTERNAL FACTOR EVALUATION MATRIX
OPPORTUNITIES WEIGHT RATING WEIGHTEDAVERAGE
1. Population growth 0.12 2 0.302. “Quality of life” demand 0.07 3 0.203. Scientific discoveries 0.07 3 0.204. Treatment required for diseases like cancer, aids etc 0.06 3 0.25
5. Health care sector expansion in Pakistan 0.05 4 0.20
6. Market growth 0.05 3 0.157. Internet utilization for sales purpose 0.07 3 0.15
8. Half of the population have no access on modern medicines.
0.08 4 0.15
THREATS1. Strict regulations 0.05 2 0.102. Intense competition 0.07 2 0.153. Competition from generic products 0.07 3 0.21
4. Law and order situations 0.06 3 0.255. Copy products 0.08 2 0.146. Threats of substitutes like herbal and homeopathic
products 0.05 2 0.15
7. Increasing raw material costs 0.05 2 0.15TOTAL 1.00 2.75
EXTERNAL FACTOR EVALUATION MATRIX
SWOT MATRIX
SO STRATEGIES1. Through R & D find solutions for the diseases like
cancer and aids with the help of scientific discoveries.
( S6, O3, O4)2. Innovative and effecitve products having less side
effects will be helpful in meeting the demands of customers.
(S7,O2)3. Develop new research products to take the
advantages of increasing market growth
( S6, O6)4. Expand the distribution to access the demand for
modern medicines ( S2, O6)
WO STRATEGIES
1. Expansion in health care sector will help in increasing the revenue which can be utilized on R & D and marketing.
(W1, W2, O5)2. Social sites can be used for promotion & marketing. (W2, O 7)3. Spent more money on research and development for
the development of new products to capture the market share.
(W1,O6)3. More CSR activities should be done for the
promotion (W6,O6 )
ST STRATEGIES1. Lower the margins to overcome the issue of
increasing raw material cost. (S4,T7)
2. Lower the prices to beat the competition. (S4, T2)3. Develop the products having negligible side effects
to face the competition from herbal and homeopathic products. ( S6, S7, T6)
WT STRATEGIES1. Increase the marketing & promotional expenditure
to face the issue of copy products. (W2,T5)2. Relaunch the patent expired products with some
modifications to beat the competition.(W4, T5)
SWOT MATRIX
BCG Matrix
BCG Matrix
Financial Analysis
Ratios 2012 2011Sales 15,216,253 12,946,968
NPM
13.7 12.7
ROE
31.7 31.2
ROA
22.4 22.2
C.R
2.71 2.42
NI 2,090,095 1,644,586
EPS 21.35 16.80
Financial Analysis
Blue Ocean Strategy
Blue Ocean Strategy HIV protease inhibitors were first invented by researchers working for the pharmaceutical companies. Abbott Laboratories and Merck & Co Inc. HIV protease inhibitors are used in the treatment of patients with AIDS and were considered the first breakthrough in over a decade of AIDS research.
Business Model
Business Model Element ABBOT
Value Proposition committing to the highest standards of quality, excellencein personal relationships, and behavior characterized by honesty, fairness and integrity.
Customer Segments Pharmaceuticals, Nutrition, Diagnostics.B2B
Channels Owned distributors, Selling by retailers.
Customers Relationship Providing manual with each product, Seminars, Personal Assistance by skilled employees, FAQs online.
Revenue Streams Varies by countries, and according to cost of investment,
Key Resources Most advanced Technology, Penetration business with potential growth.
Key Partners Global and Innovative, Related business,
Cost Structures High, due to advance technological, to achieve economies of scale, global investment.
Key Activities Research on latest and innovative life healthy production, also focus on devices to easily diagnosis.
Conclusion
The company should come up with new research products to beat the competition from copy products as well as to avail the opportunities like population and market growth. The company should access new geographical areas to enhance the sales. Company should also take steps to avoid the labor turnover.
Conclusion
Thank You