Ajeet Kumar 1325145

Manesh Kumar 1325162

Kanwal 1325158
Shakeel Ahmed 1325177
Bakhat Hussain 1325151

November 30, 2013

Overview

Brief
History

Brief History
Abbott Laboratories is a diversified
pharmaceuticals and healthcare products
company. Abbott was founded in 1888 by
Chicago Doctor, Wallace C. Abbott
6th largest global pharmaceutical provider
Headquartered in Abbot Park, illinois

Wallace C.
Abbott

90,000 Employees in more than 130

Countries
One of oldest most successful
pharmaceutical companies in the U.S.
Major operations in the US, Netherlands,
Germany, Japan, Italy, France, Canada,

1st location Abbotts

Home

Abbott Laboratories
At a Glance

In 2011
Revenue: $38.851 Billion
Operating Income: $5.751
Billion
Net Income: $4.728 Billion
Total Assets: $60.276 Billion
Total Equity: $24.526 Billion
growth last 10 years

Brief Descriptions of
Products & Services

Products and Services of the

Company
Pharmaceuticals : Localized Innovation
Nutrition: Worldwide Leader In Nutrition
Diagnostics: Pioneering Medical Diagnostic
Animal Health Products
Medical Devices

Major Business Components

PHARMACEUTICALS

Arinac,Bejectal, Burnol, Cecon, Klaricid, Lucrin,

Protium, Surbex Trividox, Tronolane

DIAGNOSTICS

Assays (AIDS, hepatitis,cancer, thyroid,

fertility, Clinical Chemistry, Hematology, etc.)
& instruments (e.g, AxSYM)
Glucose monitoring

Medical Devices

Anesthetics, delivery systems, injectables

generics, IV solutions, imaging, blood vessel
surgical closure devices

NUTRITIONALS

Similac, Isomil, Ensure, Glucerna, Pedialyte

Vision &Mission

Vision
To be the
Most Admired Healthcare Company in Pakistan.
Mission
To deliver consistently superior products and services
which contribute significantly to improving the quality
of life for consumers.
Product & Service,
Customers,
Concern for public image,
Concern for Survivalgrowth
Philosophy

Modified Mission Statement:

To deliver consistently superior products and
services globally through combination of R&D
( advanced technology) and positive workforce,
which contribute significantly to improving the
quality of life for consumers
Missing Components
Market
Technology
Employees
Self Concepts

Space Matrix:

Space Matrix:
Financial Strength (FS)
Return on Investment
Leverage
Liquidity
Working Capital
Cash Flow

Environmental Stability (ES)

5 Rate of Inflation
4Technological Changes
5Price Elasticity of Demand
6Competitive Pressure
4Barriers to Entry into Market

-3
-3
-2
-5
-3

Financial Strength (FS) Average

Environmental
4.8
Stability (ES) Average
-3.2

Competitive Advantage (CA)

Industry Strength (IS)
Market Share
-3Growth Potential
Product Quality
-2Financial Stability
Customer Loyalty
-3Ease of Entry into Market
Technological Know-how
-3Resource Utilization
Control over Suppliers and Distributors
-3 Profit Potential

Competitive Advantage (CA) Average

Industry
-2.8
Strength (IS) Average
y-axis = FS + ES = 6.0 + (-3.2) = 2.8
x-axis = CA + IS = -2.8 + (+5.2) = 2.4

6
6
4
5
5
5.2

FS

Conservative

Aggressive

6
5
4
3
2
1

CA

1
2
3
4
5
6
Defensive

ES

Competitive

IS

Competitive Profile
Matrix

Competitive Profile Matrix

CPM
Critical Success factors

Abbott

GSK

Pfizer

Weight

Rating

Score

Rating

Score

Rating

Score

Advertising

0.06

0.12

0.18

0.18

Product Quality

0.09

0.27

0.27

0.27

Price Competitiveness

0.07

0.14

0.21

0.21

Management

0.12

0.36

0.36

0.36

Financial Position

0.08

0.16

0.24

0.24

Customer Loyality

0.06

0.12

0.18

0.18

Global Expansion

0.10

0.3

0.3

0.4

Market Share

0.08

0.16

0.24

0.24

Research & Developnent

0.17

0.34

0.34

0.51

Employee Turnover

0.07

0.21

0.28

0.21

Brand

0.10

0.2

0.3

0.4

Totals

1.00

2.38

2.9

3.2

INTERNAL FACTOR
EVALUATION MATRIX
&
EXTERNAL FACTOR
EVALUATION MATRIX

INTERNAL FACTOR EVALUATION MATRIX

STRENGHTS

WEIGHT

RATING

WEIGHTED
AVERAGE

1. Global presence
2. Strategic alliances and acquisitions

0.10
0.15

4
4

0.40
0.35

3. Diversified portfolio
4. High margins
5. Over 100 year experience
6. Strong research and development

0.07
0.07
0.08
0.07

4
4
4
3

0.30
0.25
0.26
0.20

7. Innovation Leader
8. Strong brand name

0.07
0.06

3
4

0.20
0.28

1. R & D investment not to the level of

competitors
2. Marketing expenses lower than competitors

0.05

0.10

0.05

0.10

3. Labor turnover
4. Expiring patents
5. Declining market share
6. Allegations of illegal marketing

0.07
0.05
0.06
0.05

1
2
2
2

0.05
0.10
0.10
0.10

WEAKNESSES

TOTAL

2.79

EXTERNAL FACTOR EVALUATION MATRIX

OPPORTUNITIES

WEIGHT

RATING

WEIGHTED
AVERAGE

1. Population growth
2. Quality of life demand
3. Scientific discoveries
4. Treatment required for diseases like cancer, aids etc

0.12
0.07
0.07
0.06

2
3
3
3

0.30
0.20
0.20
0.25

5. Health care sector expansion in Pakistan

0.05

0.20

6. Market growth
7. Internet utilization for sales purpose

0.05
0.07

3
3

0.15
0.15

8. Half of the population have no access on modern

medicines.

0.08

0.15

1. Strict regulations
2. Intense competition
3. Competition from generic products

0.05
0.07
0.07

2
2
3

0.10
0.15
0.21

4. Law and order situations

5. Copy products
6. Threats of substitutes like herbal and homeopathic
products

0.06
0.08
0.05

3
2
2

0.25
0.14
0.15

7. Increasing raw material costs

TOTAL

0.05
1.00

0.15
2.75

THREATS

SWOT MATRIX

SWOT MATRIX
1.

2.

3.

SO STRATEGIES
Through R & D find solutions for the diseases like
cancer and aids with the help of scientific
discoveries.
( S6, O3, O4)
Innovative and effecitve products having less side
effects will be helpful in meeting the demands of
customers.
(S7,O2)
Develop new research products to take the
advantages of increasing market growth

( S6, O6)
4. Expand the distribution to access the demand for
modern medicines
( S2, O6)
1.

2.
3.

WO STRATEGIES
1.

Expansion in health care sector will help in

increasing the revenue which can be utilized on R &
D and marketing.
(W1, W2, O5)
2. Social sites can be used for promotion & marketing.
(W2, O 7)
3. Spent more money on research and development for
the development of new products to capture the
market share.
(W1,O6)
3. More CSR activities should be done for the
promotion
(W6,O6 )

ST STRATEGIES
WT STRATEGIES
Lower the margins to overcome the issue of
1. Increase the marketing & promotional expenditure
increasing raw material cost.
to face the issue of copy products.
(S4,T7)
(W2,T5)
Lower the prices to beat the competition. (S4, T2)
2. Relaunch the patent expired products with some
Develop the products having negligible side effects
modifications to beat the competition.
to face the competition from herbal and homeopathic (W4, T5)
products.
( S6, S7, T6)

BCG Matrix

BCG Matrix

Financial Analysis

Financial Analysis
Ratios

2012

2011

Sales

15,216,253

12,946,968

NPM

13.7

12.7

ROE

31.7

31.2

ROA

22.4

22.2

C.R

2.71

2.42

NI

2,090,095

1,644,586

EPS

21.35

16.80

Blue Ocean Strategy

Blue Ocean Strategy

HIV protease inhibitors were first invented by
researchers working for the pharmaceutical
companies. Abbott Laboratories and Merck & Co Inc.
HIV protease inhibitors are used in the treatment of
patients with AIDS and were considered the first
breakthrough in over a decade of AIDS research.

Business
Model

Business Model Element

ABBOT

Value Proposition

committing to the highest standards

of quality, excellence
in personal relationships, and
behavior characterized by honesty,
fairness and integrity.
Pharmaceuticals, Nutrition,
Diagnostics.
B2B
Owned distributors, Selling by
retailers.

Customer Segments

Channels
Customers Relationship

Revenue Streams
Key Resources

Providing manual with each product,

Seminars, Personal Assistance by
skilled employees, FAQs online.
Varies by countries, and according to
cost of investment,
Most advanced Technology,
Penetration business with potential
growth.

Key Partners

Global and Innovative, Related

business,

Cost Structures

High, due to advance

technological, to achieve
economies of scale, global
investment.

Key Activities

Research on latest and innovative

life healthy production, also focus
on devices to easily diagnosis.

Conclusion

Conclusion

The company should come up with new research

products to beat the competition from copy
products as well as to avail the opportunities like
population and market growth.
The company should access new geographical
areas to enhance the sales. Company should also
take steps to avoid the labor turnover.

Than
k You