SWOT Analysis

SWOT Analysis is the abbreviation of for words:

S _ Strength
W_ Weakness
O_ Opportunities
T_ Threats

Reliance Pharmaceutical (SWOT)

Strengths
Sales have been increased by 5%. Previous year sales were 9, 77,200
2% discount in medicines has been provided to their regular customers (medical stores).
Production has been increased by 12% after using machinery.
Reliance pharmaceutical have skilled workforce.

Weaknesses
The Building is on rent and rent is increasing by 10% annually.
Advertisement budget have decreased by 11%. The previous year budget was 65000.
Reliance pharmaceutical have weak financial position.
Reliance pharmaceutical have no warehouse facility.

Opportunities
Government exempt sale tax on local medicines manufactures (both Allopathic and Non
Allopathic). The tax rate was 16%.

 Increase trend in use of Allopathic medicines in Islamabad. 51.7% population of

Islamabad use Allopathic Medicines.
The annual disease rate of Islamabad increases by 11%.

Threats
Entrance of new competitors in industrial area Rawat
Prices of Allopathic Medicines are increasing because of inflation. The current Inflation
Rate in Pakistan is 9.08% (www.dawn.com/news/1053406).
Government increase custom duty on the import of medicines. The recent rate of custom
duty is 5%, while in 2013 the rate was 3%.
In Pakistan electricity shortfall is gradually increases. The recent energy shortfall is 3200
megawatts. The cost of production has been increased by 4% because of using generator.
(http://dunyanews.tv/index.php/en/Pakistan/183844-Electricity-shortfall
3200MW).

Danas Pharmaceutical (SWOT)

Strengths
Sales have been increased by 5%. Previous year sales were 9, 77,200
2% discount in medicines has been provided to their regular customers.
Located in Rawat industrial area, so they have strong business location.
Production has been increased by 12% after using machinery.
Danas Pharmaceutical have skilled workforce.

stands-at

Weaknesses
Danas Pharmaceutical have no website.
The store is on rent and rent is increasing by 10% annually.
Advertisement budget have decreased by 11%. The previous year budget was 35000.
Danas Pharmaceutical have weak financial position.
They have no warehouse facility.

Opportunities
Government exempt sale tax on local medicines manufactures (both Allopathic and Non
Allopathic). The tax rate was 16%.
Increase trend in use of Allopathic medicines in Islamabad. 51.7% population of
Islamabad use Allopathic Medicines.
The annual disease rate of Islamabad increases by 11%.

Threats
Entrance of new competitors in industrial area Rawat
Prices of Allopathic Medicines are increasing because of inflation. The current Inflation
Rate in Pakistan is 9.08% (www.dawn.com/news/1053406).
Government increase custom duty on the import of medicines. The recent rate of custom
duty is 5%, while in 2013 the rate was 3%.
In Pakistan electricity shortfall is gradually increases. The recent energy shortfall is 3200
megawatts. The cost of production has been increased by 4% because of using generator.

(http://dunyanews.tv/index.php/en/Pakistan/183844-Electricity-shortfall

stands-at

3200MW).

ARP Pharmaceutical (SWOT)

Strengths
Sales have been increased by 5%. Previous year sales were 9, 77,200
2% discount in medicines has been provided to their regular customers.
Production has been increased by 12% after using machinery.
They have skilled workforce.

Weaknesses
They have no website.
The store is on rent and rent is increasing by 10% annually.
Advertisement budget have decreased by 11%. The previous year budget was 35000.
They have weak financial position.
They have no warehouse facility.

Opportunities
Government exempt sale tax on local medicines manufactures (both Allopathic and Non
Allopathic). The tax rate was 16%.
Increase trend in use of Allopathic medicines in Islamabad. 51.7% population of
Islamabad use Allopathic Medicines.
The annual disease rate of Islamabad increases by 11%.

Threats
Entrance of new competitors in industrial area Rawat
Prices of Allopathic Medicines are increasing because of inflation. The current Inflation
Rate in Pakistan is 9.08% (www.dawn.com/news/1053406).
Government increase custom duty on the import of medicines. The recent rate of custom
duty is 5%, while in 2013 the rate was 3%.
In Pakistan electricity shortfall is gradually increases. The recent energy shortfall is 3200
megawatts. The cost of production has been increased by 4% because of using generator.
(http://dunyanews.tv/index.php/en/Pakistan/183844-Electricity-shortfall

stands-at

3200MW).

Shawan Pharmaceutical (SWOT)

Strengths
Sales have been increased by 5%. Previous year sales were 9, 77,200
2% discount in medicines has been provided to their regular customers.
Production has been increased by 12% after using machinery.
They have skilled workforce.

Weaknesses

They have no website.

The store is on rent and rent is increasing by 10% annually.
Advertisement budget have decreased by 11%. The previous year budget was 35000.
They have weak financial position.

They have no warehouse facility.

Opportunities
Government exempt sale tax on local medicines manufactures (both Allopathic and Non
Allopathic). The tax rate was 16%.
Increase trend in use of Allopathic medicines in Islamabad. 51.7% population of
Islamabad use Allopathic Medicines.
The annual disease rate of Islamabad increases by 11%.

Threats
Entrance of new competitors in industrial area Rawat
Prices of Allopathic Medicines are increasing because of inflation. The current Inflation
Rate in Pakistan is 9.08% (www.dawn.com/news/1053406).
Government increase custom duty on the import of medicines. The recent rate of custom
duty is 5%, while in 2013 the rate was 3%.
In Pakistan electricity shortfall is gradually increases. The recent energy shortfall is 3200
megawatts. The cost of production has been increased by 4% because of using generator.
(http://dunyanews.tv/index.php/en/Pakistan/183844-Electricity-shortfall
3200MW).

stands-at

Porter Five Forces

Forces
Rivalry Among Competitive Firms
Potential Entry of New Competitors
Potential Development of Substitute Products
Bargaining Power of Suppliers
Bargaining Power of Buyers

High

Moderate

Low

Rivalry among Competitive Firms

Rivalry among competitive firm is a High competitive force for Reliance Pharmaceutical
because;
1

There are large number of competitors and change in strategy by one firm met
retaliatory countermove by other firms.

Barriers to leaving market are also high.

Switching cost of consumers is very low.

Customers loyalty towards Reliance Pharmaceutical is low.

Products are not differentiated and can be easily substituted.

Potential Entry of New Competitors

Potential entry of new competitors is a Moderate competitive force for Reliance
Pharmaceutical because;
1

Huge amount of capital is required to enter a market.

Existing companies can do more to retaliate.

Switching cost of consumers is also very low.

Customers loyalty towards Reliance Pharmaceutical is low.

There are some legal barriers like patents, copyright etc and moreover government
often introduces new taxes.

Potential Development of Substitute Products

Potential development of Substitute Products is a High competitive force for Reliance
Pharmaceutical because;
1

There are many substitutes or alternatives in the market.

The performance of substitute products is almost same.

Switching cost of consumers is very low.

Bargaining Power of Suppliers

Bargaining Power of Suppliers is a Moderate competitive force for Reliance
Pharmaceutical because;
1

Large number of suppliers.

Cost of switching raw materials is especially high.

Few substitute raw materials exist.

Suppliers do not pose any threat of forward integration.

Bargaining Power of Buyers

Bargaining Power of Buyers is a HIGH competitive force for Reliance Pharmaceutical
because;
1

Only few buyers exist.

Switching cost of consumers is very low.

Buyers threaten backward integration.

There are many substitutes.

Buyers are price sensitive.