Ajeet Kumar 1325145

Manesh Kumar 1325162

Kanwal 1325158Shakeel Ahmed

1325177Bakhat 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

• 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, UK and Spain.

Wallace C. Abbott

1st location – Abbott’s Home

Abbott LaboratoriesAt 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 vesselsurgical 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

MarketTechnologyEmployeesSelf Concepts

Space Matrix:

5 -34 -35 -26 -54 -3

4.8 -3.2

-3 6-2 6-3 4-3 5-3 5

-2.8 5.2

Control over Suppliers and Distributors Profit Potential

Market Share Growth PotentialProduct Quality Financial Stability

Environmental Stability (ES) Average Financial Strength (FS) Average

Competitive Advantage (CA) Average Industry Strength (IS) Average

Customer Loyalty Ease of Entry into MarketTechnological Know-how Resource Utilization

Competitive Advantage (CA) Industry Strength (IS)

Working CapitalCash Flow

Competitive PressureBarriers to Entry into Market

Environmental Stability (ES)Rate of InflationTechnological ChangesPrice Elasticity of Demand

Financial Strength (FS)Return on InvestmentLeverageLiquidity

Space Matrix:

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

6

5

4

3

2

1

-6 -5 -4 -3 -2 -1 1 2 3 4 5 6

-1

-2

-3

-4

-5

-6

FSConservative Aggressive

Defensive Competitive

IS

ES

CA

Competitive Profile Matrix

CPM Abbott GSK Pfizer

Critical Success factors Weight Rating Score Rating Score Rating Score

Advertising 0.06 2 0.12 3 0.18 3 0.18

Product Quality 0.09 3 0.27 3 0.27 3 0.27

Price Competitiveness 0.07 2 0.14 3 0.21 3 0.21

Management 0.12 3 0.36 3 0.36 3 0.36

Financial Position 0.08 2 0.16 3 0.24 3 0.24

Customer Loyality 0.06 2 0.12 3 0.18 3 0.18

Global Expansion 0.10 3 0.3 3 0.3 4 0.4

Market Share 0.08 2 0.16 3 0.24 3 0.24

Research & Developnent 0.17 2 0.34 2 0.34 3 0.51

Employee Turnover 0.07 3 0.21 4 0.28 3 0.21

Brand 0.10 2 0.2 3 0.3 4 0.4

Totals 1.00 2.38 2.9 3.2

Competitive Profile Matrix

INTERNAL FACTOR EVALUATION MATRIX

&

EXTERNAL FACTOR EVALUATION MATRIX

STRENGHTS WEIGHT RATING WEIGHTEDAVERAGE

1. Global presence 0.10 4 0.402. Strategic alliances and acquisitions 0.15 4 0.35

3. Diversified portfolio 0.07 4 0.304. High margins 0.07 4 0.255. Over 100 year experience 0.08 4 0.266. Strong research and development 0.07 3 0.20

7. Innovation Leader 0.07 3 0.20 8. Strong brand name 0.06 4 0.28

WEAKNESSES

1. R & D investment not to the level of competitors

0.05 2 0.10

2. Marketing expenses lower than competitors 0.05 2 0.10

3. Labor turnover 0.07 1 0.054. Expiring patents 0.05 2 0.105. Declining market share 0.06 2 0.106. Allegations of illegal marketing 0.05 2 0.10

TOTAL 1 2.79

INTERNAL FACTOR EVALUATION MATRIX

OPPORTUNITIES WEIGHT RATING WEIGHTEDAVERAGE

1. Population growth 0.12 2 0.302. “Quality of life” demand 0.07 3 0.203. Scientific discoveries 0.07 3 0.204. Treatment required for diseases like cancer, aids etc 0.06 3 0.25

5. Health care sector expansion in Pakistan 0.05 4 0.20

6. Market growth 0.05 3 0.157. Internet utilization for sales purpose 0.07 3 0.15

8. Half of the population have no access on modern medicines.

0.08 4 0.15

THREATS1. Strict regulations 0.05 2 0.102. Intense competition 0.07 2 0.153. Competition from generic products 0.07 3 0.21

4. Law and order situations 0.06 3 0.255. Copy products 0.08 2 0.146. Threats of substitutes like herbal and homeopathic

products 0.05 2 0.15

7. Increasing raw material costs 0.05 2 0.15TOTAL 1.00 2.75

EXTERNAL FACTOR EVALUATION MATRIX

SWOT MATRIX

SO STRATEGIES1. Through R & D find solutions for the diseases like

cancer and aids with the help of scientific discoveries.

( S6, O3, O4)2. Innovative and effecitve products having less side

effects will be helpful in meeting the demands of customers.

(S7,O2)3. 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)

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 STRATEGIES1. Lower the margins to overcome the issue of

increasing raw material cost. (S4,T7)

2. Lower the prices to beat the competition. (S4, T2)3. Develop the products having negligible side effects

to face the competition from herbal and homeopathic products. ( S6, S7, T6)

WT STRATEGIES1. Increase the marketing & promotional expenditure

to face the issue of copy products. (W2,T5)2. Relaunch the patent expired products with some

modifications to beat the competition.(W4, T5)

SWOT MATRIX

BCG Matrix

BCG Matrix

Financial Analysis

Ratios 2012 2011Sales 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

Financial Analysis

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, excellencein personal relationships, and behavior characterized by honesty, fairness and integrity.

Customer Segments Pharmaceuticals, Nutrition, Diagnostics.B2B

Channels Owned distributors, Selling by retailers.

Customers Relationship Providing manual with each product, Seminars, Personal Assistance by skilled employees, FAQs online.

Revenue Streams Varies by countries, and according to cost of investment,

Key Resources 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

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.

Conclusion

Thank You