Last Updated 12 May 2020

Pharmcare: SWOT analysis

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Pharmcare: SWOT analysis

Question 1

What does the SWOT analysis tell us about the competitive position of Pharmcare with the industry as a whole? From the illustration, Pharmcare strengths include its flexible salesforce, economies of scale, strong brand name and health care education department. From the illustration, it shows that the flexible salesforce can cope with the environmental change as all of the four categories have positive score.

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. The economies of scale is another strengths of Pharmcare. This helps Pharmcare to cope with the environmental change as two of the categories have positive score. The score of the increased integration of health care is +3 and informed patients is +3. The strong brand name is another strengths of Pharmcare.

This helps Pharmcare to cope with the environmental change as two of the categories have positive score. The score of health care rationing is +2, complex and changing buying structures is +1. However, the score of informed patients is -1. The health care education department is another strengths of Pharmcare. This helps Pharmcare to cope with the environmental change as four of the categories have positive score. The score of health care rationing is +4, complex and changing buying structures is +3, increased integration of health care is +4 and informed patients is +5. Pharmcare’s weaknesses includes limitied competences in biotechnology and genetics, ever lower R&D productivity, weak ICT competences and over-reliance on leading product. Limited competences in biotechnology and genetics is one of the weaknesses when Pharmcare faces environmental change as two of the categories have negative score. The score of increased integration of health care is -4 and informed patients is -3.

Ever lower R&D productivity is another weakness when Pharmcare faces environmental change as four of the categories have negative score. The score of health care rationing is -3, complex and changing buying structures is -2, increased integration of health care is -1 and informed patients is -2. The weak ICT competences is another weakness of Pharmcare when faces environmental change as four of the categories have negative score. The score of health care rationing is -2, complex and changing buying structures is -2, increased integration of health care is -5 and informed patients is -5. Over-reliance on leading product is another weakness of Pharmcare when faces the environmental change as four of the categories have negative score. The score of health care rationing is -1, complex and changing buying structures is -1, increased integration of health care is -3 and informed patients is -1.

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Question 2

How readily do you think executives of Pharmacare identify the strengths and weaknesses of competitors? Company W rates -4 in the health care rationing category. It is because its focus is on old-style promotional selling rather than helping doctors control costs through drugs. It rates -4 in the complex and changing buying structures as its traditional salesforce not helped by marketing which can be unaccommodating of national differences. It rates 0 in the increased integration of health care as its alliances with equipment manufacturers but little work done across alliance to show dual use of drugs and new surgical techniques. It rates +4 in the informed and passionate patients category as new recruits in the ICT department have worked cross-functionally to involve patients like never before. The overall impact of Company W score is -4, it needs to modernize across the whole company. Organisation X rates +3 in the health care rationing category as it potentially able to deliver repaid advances in genetic-based illnesses. It rates +2 in complex and changing buying structures as it able possibly to bypass these with innovative cost effective drugs. It rates +2 in increased integration of health care as it has innovative drugs can help integrate health care through enabling patients to stay at home. It rates +3 in informed and passionate patients as patients will fight for advances in treatment areas where little recent progress has been made. The overall impact of Organisation X score is +10, it could be the basis of a new business model for drug discovery but all to prove as yet.

Company Y rates +3 in health care rationing as it partnering with big pharma allows the development of drugs discovered by big pharma but not economical for them to develop. It rates 0 in complex and changing buying structures as it focus on small market segments so not as vulnerable to overall market structure, but innovative approach might be risky. It rates +2 in increased integration of health care as its innovative use of web to show why products still worthwhile developing even for less common illnesses. It rates +1 in informed and passionate patients as there are toll-free call centres for sufferers of less common illnesses company, like patients, is passionate about its mission. The overall impact of Company Y score is +6, its novel approach can be considered either risky or a winner, or both. The impact of environmental forces on competitors was analyzed, it showed that Pharmcare was still outperforming its traditional competitor (Company W), but potentially vulnerable to changing dynamics in the general industry structure courtesy of niche players (X and Y).

Question 3

Identify the benefits and dangers (other than those identified in the text) of a SWOT analysis such as that in the illustration. SWOT Analysis helps in strategic planning in following manner. It is a source of information for strategic planning. It helps to build organization’s strengths, reverse its weaknesses, it maximize its response to opportunities, overcome organization’s threats. It helps in identifying core competencies of the firm, helps in setting of objectives for strategic planning, helps in knowing past, present and future so that by using past and current data, future plans can be chalked out. However, there are certain limitations of SWOT Analysis which are not in control of management. For example, price increase, inputs or raw materials, government legislation, economic environment, searching a new market for the product which is not having overseas market due to import restrictions; etc

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