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.
Company Details of Beximco Pharmaceuticals Ltd
Beximco Pharmaceuticals Ltd. is one of the leading manufacturers of Active Pharmaceutical Ingredients and pharmaceutical formulations in Bangladesh.
Beximco Pharmaceuticals was founded in 1980, headquartered in Tongi, Dhaka, Bangladesh. It is the leader company of Beximco Group, one of the largest private sectors industrial conglomerates in Bangladesh. The global regulatory bodies of the European Union, Brazil, Australia, Gulf nations, among others certified Beximco Pharma’s state-of-the-art manufacturing facilities. Beximco Pharmaceuticals Ltd is constantly building upon its portfolio and currently providing approximately 500 different products in different dosage forms that which include antibiotics, cardiovascular, respiratory, anti-diabetics, gastrointestinal, analgesics, etc.
With many years of contract manufacturing experience and expertise with MNCs, adroit manpower and proven formulation capabilities, the company has been creating a visible and growing appearance across the countries offering high quality and affordable generics.
Beximco Pharmaceuticals Ltd has a unique character as the sole Bangladeshi company getting listed on the AIM of the London Stock Exchange.
SWOT analysis of Beximco Pharmaceuticals
Strengths of Beximco (Internal Strategic Analysis)
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 (Internal Strategic Analysis)
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.
Loan defaulter:one of the owners of Beximco Pharma did take a loan from Sonali Bank, and did not pay it back yet. It may harm the company image in the long term.
Environmental pollution:for producing purpose, they are polluting water, and soil in the area where they set up their factories.
Opportunities for Beximco (External Strategic Analysis)
Enormous Growth :with an employee’s range of more than 2700, the company is growing day by day which is capable for growing market as well.
Advantage as a globally certified company :it has been certified by different countries as a reputed medicine manufacturer. It can use this opportunity to enter other countries.
Building Stronger Brand :as it fulfils social responsibilities, there is a huge possibility of getting more market share in future.
Threats for Beximco (External Strategic Analysis)
The threat to the environment :as it pollutes environmental elements, if the Bangladeshi regulatory body takes any steps against it, that may create a problem for its growing.
Huge competition :first level companies like Square Pharmaceuticals and Incepta Pharmaceuticals are doing well, and gradually they are gaining more market shares which are another barrier for Beximco pharmaceuticals.
New Entrants in the market :as the whole country is doing well in the pharmaceutical sector, the number of newcomers are increasing more than ever. This may result in declining market shares.
Bottom Line
If we closely look at the SWOT Analysis of Beximco pharmaceuticals, we can see that there are more competitive advantages than the disadvantages. The strategic operations are highly functional. If weak points are not overlooked, and proper steps are taken, this company will be able to be staying in leading position consistently.
Sources Used for this Analysis:
- WikiPedia – Beximco Pharmaceuticals
- Official Website of Beximco
- Financial Statements of 2012, 2013, & 2014
- 24 Live Newspaper Bangla
Sheikh Faizul Haque is an internet entrepreneur and the founder of The Strategy Watch; Graduated from North South University with a double major in Accounting & Finance in Bangladesh.
With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis.