SWOT Analysis• Strengths, Weaknesses, Opportunites and

Threats (SWOT).• SWOT analysis is a tool for auditing an

organization and its environment.• It is the first stage of planning and helps

marketers to focus on key issues. • SWOT stands for strengths, weaknesses,

opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

Strengths Opportunities

Weaknesses Threats

Match Match

Convert Convert

Minimize/Avoid Minimize/Avoid

Matching

A strength could be:

• Your specialist marketing expertise. • A new, innovative product or service. • Location of your business. • Quality processes and procedures. • Any other aspect of your business that

adds value to your product or service.

A weakness could be:

• Lack of marketing expertise. • Undifferentiated products or services (i.e.

in relation to your competitors). • Location of your business. • Poor quality goods or services. • Damaged reputation.

An opportunity could be:

• A developing market such as the Internet. • Mergers, joint ventures or strategic

alliances. • Moving into new market segments that

offer improved profits. • A new international market. • A market vacated by an ineffective

competitor.

A threat could be:

• A new competitor in your home market. • Price wars with competitors. • A competitor has a new, innovative

product or service. • Competitors have superior access to

channels of distribution. • Taxation is introduced on your product or

service.

Simple rules for successful SWOT analysis.

• Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis.

• SWOT analysis should distinguish between where your organization is today, and where it could be in the future.

• SWOT should always be specific. Avoid grey areas. • Always apply SWOT in relation to your competition

i.e. better than or worse than your competition. • Keep your SWOT short and simple. Avoid complexity

and over analysis • SWOT is subjective.

SWOT ANALYSIS FOR THE MALAYSIAN PHARMACEUTICAL INDUSTRY

STRENGTHS

Commitment of government❖ 7MP.❖ IMP2 - Pharmaceuticals as

one of the strategic clusters.❖ Industrial Grant Scheme (IGS).

WEAKNESSES

Lack of a national policy for pharmaceutical industry development. Duplication of inter-agency efforts for similar programmes. Government processes and procedures lacks user-friendliness.

OPPORTUNITIES Strong IPR protection through TRIPs Agreement. Well-publicised, transparent, clear and easily understood policies available to all. Identification of a lead agency or organisation specifically for pharmaceuticals.

THREATS

The national efforts in strengthening the framework is constantly undermined by competitor countries.

STRENGTHS

Presence of a well established pharmaceutical regulatory system imposing internationally accepted standards of practices.

WEAKNESSES

Lack of harmonisation and understanding in the regulatory practices of the different ministries/ agencies governing the local pharmaceutical industry.

OPPORTUNITIES

GMP-GLP-GCP compliant infrastructure through regulatory requirements creates Malaysia as a potentially formidable competitor for regional pharmaceutical development.

THREATS

More industry-friendly regulations expediting pharmaceutical industry growth in neighbouring countries.

STRENGTHS

No tariff & tax for import of pharmaceuticals. Available investment incentives & promotion schemes.

WEAKNESSES Tax incentives for promoted products excludes general manufacture of pharmaceutical products. Incentives available are limited and lacks clarity. No single agency is entrusted to offer a comprehensive package to attract foreign investment and technology transfer.

OPPORTUNITIES

Improved incentives to attract stronger multinasional companies’ participation and elevate local manufacture capability with improved technology skills.

THREATS

Well-packaged and more effectively advertised incentives by a single empowered agency in neighbouring country.

STRENGTHS

Availability of fund, albeit at a much reduced scale.

WEAKNESSES

Long payback period. Number of local pharmaceutical manufacturers approaching saturation.

OPPORTUNITIES

Post IMP emphasis in pharmaceutical industry.

THREATS

Depletion of financial resources. High capital costs for pharmaceutical manufacture and product development.

STRENGTHS

Adequate land at reasonable price. Good utilities & basic infrastructure. Strategic geographic location. Rich store of natural bioactive compounds.

WEAKNESSES

Development is not focussed. Inconsistent utility supply e.g. electricity and water. Fragmented and unreliable support services.

OPPORTUNITIES

Malaysia as a regional centre for pharmaceutical development. Commercial exploitation of bioresouces to produce natural bioactive compounds as pharmaceutical actives or leads in drug discovery.

THREATS

Neighbouring countries may pose as potential competitors offering better infrastructure and support services.

STRENGTHS

Existing collaboration in research between local and foreign agencies/ institutions, particularly in the regulatory aspect.

WEAKNESSES Lack of effective collaboration, integration and coordination among government ministries/agencies, research and academic institutions. The local and international networking to enchance industry-research institutions relationship is still weak. The current ASEAN platform is not effective in reducing regional trade barriers.

OPPORTUNITIES

Opportunity for collaboration amongst local manufacturers, MNCs and research institutions. Possible Government-to- Government, regional and international collaborative network.

THREATS

Intellectual Properity Rights strongly favouring foreign partners.

STRENGTHS Increase in the number of available trained manpower. Growth in the no. of local institutions of higher learning and research institutions engaged in pharmaceutical R&D.

WEAKNESSES

General lack of local human resources trained in R&D. Shortage of clinical trial experts. Expertise in R&D are mainly from abroad.

OPPORTUNITIES

Collaborative strategic alliances at the local and international levels.

THREATS

Migration of skilled personnel to off-shore centres and neighbouring countries.

STRENGTHS Existence of research institutions involved in pharmaceuticals and related fields. Expertise in selected areas of pharmaceuticals research. Increase in the no. of local institutions offering relevant training.

WEAKNESSES R&D is not industry driven. Lack of focus/direction in R&D in local institutions. Lack of research expertise in a number of areas. Majority of local manufacturers lacks a strong R&D base. Lack of local institutions offering R&D services for the industry.

OPPORTUNITIES

Potential for Malaysia to evolve as a centre for clinical trials for pharmaceuticals. Presence of multinational companies and foreign research institutions as potential partners in fortifying R&D.

THREATS

Neighbouring countries pose potential competitions in research and development services.

STRENGTHS Sufficient number of local manufacturing companies. Lack of fund allocated for R&D by companies. Too many manufacturers handling same product range.

WEAKNESSES

Low level of innovation competency in product development. Little manufacture of raw/intermediate products.

OPPORTUNITIES

Enhanced R&D support from government & research institutions. Contract manufacture as a potential short-cut for technology acquisition. Vendor Development Programme as a strong supportive arm. Rationalisation of product range. Strengthening through mergers.

THREATS

Strong trade barriers imposed even at regional level. Compliance to WHO GMP standards is no longer an assurance of export market penetration.

STRENGTHS

Wide range of generics. Fairly good quality. Reasonable compliance to GMP requirements.

WEAKNESSES

Too many similar products. Lack of specialty product development. Lack of bioavailability/ bioequivalence data.

OPPORTUNITIES

Expansion of herbal-based industry. Potential for contract manufacture. Cosmetic and medical devices industry potential.

THREATS

Imports of generic products.