Opportunities and Threats in Pharmaceuticals industry

Opportunities
1. Growing domestic demand driven by population growth and healthcare awareness.
2. TRIPS waiver allows generic drug exports until 2033, opening international markets.
3. Increasing number of international accreditations received by Bangladeshi companies.
4. Government incentives (tax holidays, subsidies), favorable trade policies reduce costs and
support competitiveness.
5. Favorable offers from financial institutions
6. Global demand for affordable generics positions Bangladesh well in emerging markets.
7. Expanding skilled workforce supports R&D and operational efficiency.
8. Investment in R&D opens potential for innovation in niche and specialty drugs.
9. Contract manufacturing opportunities due to Bangladesh’s low production costs.
10. Niche markets (biosimilars, tropical disease treatments) offer global differentiation.
11. Increased purchasing power
12. A gradual shift in demographic, increased life expectancy translate into an opportunity
13. The industry is in growth stage

Threats
1. Heavy dependence on imported APIs makes the industry vulnerable to supply chain risks.
2. Strict regulatory standards in developed markets complicate export access.
3. Intense local and regional competition pressures profit margins.
4. Economic instability and currency fluctuations increase operational costs.
5. TRIPS waiver expiration will raise costs for producing patented drugs.
6. Limited advanced R&D infrastructure restricts high-value drug development.
7. Innovative formula, products from global competitors
8. Increasing environmental regulations raise costs, impacting profitability.
9. Quality control issues could harm the industry’s reputation internationally.
10. Lack of support from supportive industries.
 Strengths and Weaknesses Square Pharmaceuticals

Strengths

 Sufficient number of highly experience and skilled employees

 Large Customer Base
 Local source of raw materials
 Able to create benchmark
 Strong corporate governance
 Greater customer loyalty
Weaknesses

 Absence of advanced technology

 Less organized
 Time-consuming decision-making process
 Minimal profit
 VRIO analysis for Square Pharmaceuticals

Resource/Capability Valuable? Rare Inimitable? Organised Competitive

to Exploit? Implication

Advanced R&D in Biotech & Yes Yes Yes Yes Sustainable

Biosimilars Competitive
Advantage
Market Leadership in Yes Yes Yes Yes Sustainable
Bangladesh Competitive
Advantage
Regulatory Certifications Yes Yes Yes Yes Sustainable
(WHO-GMP, FDA) Competitive
Advantage
In-House Active Yes Yes Yes Yes Sustainable
Pharmaceutical Ingredient Competitive
(API) Production Advantage
Strong Brand Reputation and Yes Yes Yes Yes Sustainable
Trust Competitive
Advantage
Efficient Supply Chain & Yes No No Yes Competitive Parity
Distribution Network
Access to Strategic Yes Yes Yes Yes Sustainable
Partnerships & Collaborations Competitive
Advantage
 Strengths and Weaknesses Beximco Pharmaceuticals

This SWOT analysis of Beximco pharmaceuticals elaborates the strength & weakness of,
opportunities & threats for Beximco pharmaceuticals Company. It will provide a visual overview
that will prompt discussion around the company's strategy and situation. This SWOT analysis of
Beximco pharmaceuticals can be used to evaluate the position of their business. This can be
utilized to guide business strategy session of Beximco pharmaceuticals.

Strengths of Beximco:

 Largest exporter in the country: in the pharmaceuticals sector Beximco is the largest
exporter in Bangladesh. It earns 55% of its revenue from exports.

 Strong brand image: it has consistently been improving its products and so the brand
image.

 Bigger market share: In Bangladesh, it possesses a bigger market share than many other
giant medication providers. It offers more than 400 products.

 Product diversity: it produces more than 200 generic which are available in more than
400 different forms, and many of them are leaders among others.

 Foreign market share: As most of the revenue comes from exporting, it possesses a
large market share in the foreign markets.

 Unique product: it is the first company in Bangladesh to produce ARV drugs for
AIDS/HIV cases.

 Corporate social responsibility: it always has been working for social improvements. It
is connected with much social welfare organization.

 Public health checking point: it has its health checking point where they can directly
communicate with people and gather information. They have pharmacies almost every
division in Bangladesh.

 Expert employees: Beximco Pharma has many experts like chemists, pharmacists,
doctors, MBAs, microbiologists, and engineers who are highly educated. It makes the
company gather more strength in a similar industrial sector.
  Certified by Global regulatory bodies The global regulatory bodies of the European
Union, Brazil, Australia, Gulf nations, among others certified Beximco Pharma's state-of-
the-art manufacturing facilities.

 Strong R&D: Beximco Pharmacy is continuously searching for the next treatment
advancements. The portfolio of Beximco features a list of high- quality, effective
products which gave it the advantage to be staying in the top leading company list in a
similar sector.

Weaknesses of Beximco:

 Inconsistent in supplying product: Sometimes they are not able to produce specific
products efficiently; as a result, they cannot supply those products to retailers timely.

 Dependency on foreign products: Beximco has to import Capsule Cap from other
countries. It's a big advantage for them to acquire a larger market. It also imports dry-
aluminum hydro-oxide, Dry magnesium hydro- oxide, and Lutin from abroad.

 Strong competitor: Square pharma has larger market share than Beximco in Bangladesh,
and the difference is stable.

 Use of cash for promotional purposes: they donate money for promoting their products
to the doctors and distributors. Beximco already has a large market share. If they do not
stop this behaviour right now, they may lose market share in future.

 Environmental pollution: for producing purpose, they are polluting water, and soil in
the area where they set up their factories.
 VRIO Analysis of Beximco Pharmaceuticals
VRIO analysis framework for Beximco, focusing on its competitive resources and capabilities in
various sectors such as pharmaceuticals, textiles, and energy.

1. Valuable (V)
Product Range and Quality: Beximco is one of the largest and most diversified conglomerates in
Bangladesh, offering high-quality products in pharmaceuticals, textiles, ceramics, and more. The
company’s diverse product portfolio is valuable as it meets a broad spectrum of market demands
both locally and internationally.
Brand Reputation: Beximco’s strong brand reputation, built over decades, adds value by
increasing customer loyalty and brand recognition, especially in pharmaceuticals.
Vertical Integration: In textiles and pharmaceuticals, Beximco maintains integrated production
capabilities, enhancing efficiency, reducing dependency on suppliers, and improving cost
control.
Research and Development (R&D): Beximco Pharmaceuticals invests significantly in R&D to
innovate and develop new drugs, which is valuable in maintaining a competitive edge in the
pharmaceutical sector.

2. Rare ®
Advanced Manufacturing Facilities: Beximco’s state-of-the-art pharmaceutical facilities meet
international standards (such as FDA and EMA approvals), which is rare among Bangladeshi
companies and gives it a unique advantage in global markets.
Export-Oriented Strategy in Pharmaceuticals: Beximco has a strong presence in global markets,
exporting to more than 50 countries. While some Bangladeshi companies export, Beximco’s
scale, regulatory approvals, and established export markets are relatively rare in Bangladesh.
Experienced Management and Skilled Workforce: Beximco’s experienced leadership team and
highly skilled workforce, especially in its pharmaceutical and textile divisions, are rare assets
that are hard to replicate.

3. Inimitable (I)
Brand Equity in Pharmaceuticals: Building a trusted pharmaceutical brand that complies with
international standards and regulatory requirements is challenging and requires long-term
investments, making Beximco’s brand equity difficult for competitors to imitate.
Vertical Integration and Economies of Scale in Textiles: Beximco’s vertically integrated textile
operations and its scale of operations are difficult for new entrants or smaller competitors to
imitate due to the high capital and operational costs involved.
Long-Term Relationships with International Clients: Beximco has established long-term
relationships with high-profile international clients in its various sectors, especially in
pharmaceuticals and textiles, which are difficult for competitors to replicate quickly.

4. Organization (O)
Efficient Supply Chain Management: Beximco has organized its supply chain and logistics to be
responsive and efficient, ensuring its products are distributed on time both domestically and
internationally.
Strategic Alliances and Partnerships: Beximco has organized its operations to maintain strategic
partnerships, such as with foreign companies for joint ventures or knowledge-sharing in
pharmaceuticals, which help it stay competitive and responsive to market changes.
Sustainability Initiatives: Beximco has invested in sustainability practices, especially in its
textile division, to meet global environmental standards, which enhances its brand image and
ensures compliance with international buyers’ requirements.

Based on the VRIO framework, Beximco holds several competitive advantages. Its valuable,
rare, and inimitable resources, coupled with strong organizational capabilities, give it a sustained
competitive advantage in the Bangladeshi market and globally in certain sectors, particularly
pharmaceuticals and textiles.
 Strengths and Weaknesses Incepta Pharmaceuticals Ltd:

Strengths of Incepta Pharmaceuticals Ltd:

1. Strong R&D capabilities
2. Quality standards
3. Market presence
4. Diverse product portfolio
Weaknesses of Incepta Pharmaceuticals Ltd:
1. Dependence on local market
2. Limited global brand recognition
3. Regulatory challenges
4. Resource constraints
 VRIO Analysis of Incepta Pharmaceuticals

Resource/ Valuable? Rare? Inimitable? Organized to Competitive

Capability Exploit? Implication

Advanced R&D Yes Yes Yes Yes Sustainable

in Biotech & Competitive
Biosimilars Advantage

First-Mover Yes Yes Yes Yes Sustainable

Advantage in Competitive
Complex Advantage
Generics

Regulatory Yes Yes Yes Yes Sustainable

Certifications Competitive
(WHO-GMP, Advantage
EU, FDA)

Domestic and Yes No No Yes Temporary

International Competitive
Market Presence Advantage

Automated & Yes Yes No Yes Temporary

GMP-Compliant Competitive
Manufacturing Advantage
Facilities

In-House API Yes Yes Yes Yes Sustainable

Production Competitive
Capabilities Advantage

Strong Brand Yes Yes Yes Yes Temporary

Reputation & Competitive
Market Trust Advantage

Efficient Supply Yes No No Yes Competitive

Chain & Parity
Distribution

Access to Yes Yes Yes Yes Sustainable

Strategic Competitive
Partnerships & Advantage
Collaborations