Abbott Laboratories is a worldwide healthcare company located at Abbott Park, Illinois, manufacturing medical equipment and medications. The Abbott Alkaloidal Company, formed in Ravenswood in 1888 by Chicago physician Wallace Calvin Abbott, was the inspiration for the organization’s name. (1).
Cardiovascular, diabetic, and neuromodulation products are its main focus. Pediatric and adult nutrition products such as Pedialyte, Glucerna, and Similac are also well-known by Abbott. More than 130 years in the pharmaceutical and consumer health care industries have given Abbott Laboratories an edge in the field. Around the globe, the firm has 31 production facilities and 12 research centers. (2).
SWOT Analysis of Abbott Laboratories
Its internal strategic strengths and weaknesses shape Abbott Laboratories’ strengths and weaknesses. For example, the company can gain many benefits because it does business worldwide. Businesses that Abbott Laboratories competes in have opportunities and threats based on what is going on with the businesses that compete with them., Then, Abbott Laboratories needs to develop ideas for how to grow and keep their business safe before the competition does. Because of this Swot Analysis of Abbott Laboratories, the firm will not be able to develop or be viable in the long term if it doesn’t address the issues mentioned here.
Related SWOT Analysis: Beximco Pharma | Square Pharma | Johnson & Johnson | Pfizer
Strengths of Abbott Laboratories
Distribution Network & Cost Structure: Abbott Laboratories has many retail locations in virtually every state. It is backed by a robust distribution network that ensures that its goods are readily accessible to many consumers and delivered in a timely way. Also, with Abbott’s low-cost structure, the company can manufacture and market its goods at cheap costs, making them more accessible to the general public. (2).
Consolidation and Acquisition: It has grown into a gigantic alliance in the medication manufacturing industry. It has acquired more than 40 firms so far and has established itself as a dominant force in the industry. Recent acquisitions have included St. Jude Medical, one of the region’s firms. (3).
Global Presence & Perceived Brand: More than 150 countries are home to Abbott Laboratories. Long-haul medical care goods are made available in both the developed and developing markets worldwide. Thus, they can serve a wider range of customers. It has been a well-known name in the industry since its establishment. (3).
Customer Satisfaction: The firm has achieved high levels of customer satisfaction among current customers and strong brand equity among future consumers because of its specialized customer relationship management department. (4)
Weakness of Abbott Laboratories
Low R&D Expenses: In 2010, it slashed its budget for innovative projects by a significant amount. It might result in a crippling R&D section, which is problematic since R&D is necessary for the company to develop new products. This might have an unfavorable effect on the company. (3)
Drug Lawsuits: Tricor, the FreeStyle diabetic line, and St. Jude defibrillators have all been the subject of lawsuits against Abbott. As early as 2011, according to the complaint, St. Jude Medical knew of a battery-depletion problem in certain of their cardiac defibrillators. Also, according to reports, the parents of a diabetic lady who died after using Abbott’s FreeStyle test strips and blood glucose monitor system sued the company. (2)
Limited Success in Core Business: Although Abbott Laboratories is one of the most successful companies in its field, it has had difficulties expanding into new product areas because of its current culture. (2)
Workforce Diversification: Abbott Laboratories employs a mostly local workforce, with a small number of people from various racial and ethnic origins. Employees of diverse ethnic backgrounds find it challenging to fit in when there isn’t enough diversity in the workplace. (4).
Opportunities for Abbott Laboratories
Online Platform: Maximum people are using the internet nowadays. As a result of this, Abbott Laboratories may communicate with customers online. Also, online merchants may help Abbott Laboratories. Furthermore, customer service and feedback are done through social media. (1).
Technological Development: Technology provides significant advantages across a wide range of industries. It is possible to automate operations to minimize expenses. Better data collection on clients is made possible thanks to technological advancements, which also help marketing activities. (2).
Income Level: Following the recession, there has been a rise in the average family income, which has coincided with an increase in consumer expenditure. This will result in an increase in Abbott Laboratories’ target market due to new clients being drawn to the company as a result of the expansion. (1).
Globalization: Due to increased globalization, Abbott Laboratories is not restricted to its nation. Moreover, it can expand its activities to other nations, joining these markets and taking advantage of the possibilities in these sectors. (3).
Threats for Abbott Laboratories
Fluctuation of the scale: Because it is a global corporation, it sells its products all over the globe and also imports raw materials from other countries. A negative alteration in the switching scale might harm the development of its benefits. (3).
Intense Competition & New Entrants: In the pharmaceutical sector, new technical breakthroughs by a few rivals constitute a threat to Abbott Laboratories because customers drawn to the new technology may abandon Abbott Laboratories in favor of competitors, diminishing Abbott Laboratories’ total market share. (4). Many new firms are entering the industry and taking market share from current ones. Abbott Laboratories may lose clients to these new entrants. (2).
Government Intervention: In medical care administration, legislation, Governments of many countries, including the United States, have shown to be more constrained and regulated. If Abbott Laboratories does not adhere to the differing requirements in different nations, this might threaten the company. (3)
Rise of Fuel Pricing: Abbott Laboratories’ input costs have grown due to the increase in the price of fuel. These expenses have also grown due to rising fuel prices affecting other businesses that give inputs to this firm, causing them to raise their pricing as a result of greater competition.
Recommendations
This Swot Analysis enables us to view that this company still has some flaws,, especially in reaching the global market and improper structure in the R&D sector. Moreover, Government regulations are creating problems for this business to a certain extent. It is suggested to minimize some of its weak areas by using the most recent digital marketing strategies available. Because so many people now use the internet, it is the most effective way to gain its market share. As a result, having a worldwide presence via digital marketing is crucial for Abbot Laboratories.
References
- https://www.abbott.com/about-abbott/at-a-glance.html
- https://www.drugwatch.com/manufacturers/abbott-laboratories/
- https://iide.co/case-studies/swot-analysis-of-abbott-laboratories/
- https://www.researchandmarkets.com/reports/1314761/abbott_laboratories_abt_financial_and
