Srtategy in Beximco – the Pharmaceutical Industry
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Introduction:
The pharmaceutical industry, however, like all other sectors in Bangladesh, was much neglected during Pakistan regime. Most multinational companies had their production facilities in West Pakistan. With the emergence of Bangladesh in 1971, the country inherited a poor base of pharmaceutical industry. For several years after liberation, the government could not increase budgetary allocations for the health sector. Millions of people had little access to essential life saving medicines. With the promulgation of the Drug (Control) Ordinance of 1982 many medicinal products considered harmful, useless or unnecessary got removed from the market allowing availability of essential drugs to increase at all levels of the healthcare system. Increased competition helped maintain prices of selected essential drugs at the minimum and affordable level.
In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector which is contributing in the countrys economy. After the promulgation of Drug Control Ordinance – 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key factors for this development. Due to recent development of this sector we are exporting medicines to global market including European market. This sector is also providing 95% of the total medicine requirement of the local market. Leading Pharmaceutical Companies are expanding their business with the aim to expand export market. Recently few new industries have been established with hi tech equipments and professionals which will enhance the strength of this sector.
In Bangladesh, pharmaceutical is now one of the fastest growing sectors. In 2004, the total size of the pharma market of Bangladesh was estimated to be Tk. 28,416 Million. With an annual growth rate of about 10%, Bangladesh Pharmaceutical Industry is now heading towards self-sufficiency in meeting the local demand. Bangladesh pharmaceutical industry is the second highest contributor to the national exchequer after garments, and it is the largest white-collar intensive employment sector of the country.
There are about 450 generics registered in Bangladesh. Out of these 450 generics, 117 are in the controlled category i.e. in the essential drug list. The remaining 333 generics are in the decontrolled category, The total number of brands /items that are registered in Bangladesh is currently estimated to be 5,300, while the total number of dosage forms and strengths are 8,300,
Company back ground:
Beximco Pharmaceuticals Ltd. is the leading pharmaceutical company of Bangladesh. Founded in 1976, Beximco Pharmaceuticals Ltd. has been producing world class pharmaceutical products following current Good Manufacturing Practice (cGMP) as required by the World Health Organization (WHO) in order to improve health, happiness and quality of life.
Beximco Pharmaceuticals Ltd. has products of different therapeutic classes, each of which occupies a prominent position in the market and the heart of our customers and shareholders. Beximco Pharmaceuticals Ltd. is always committed to improve the lives of people through the development and commercialization of high quality and cost-effective medicines.
Noted for our market driven approach, BPL is also known for constructive endeavor to innovation that is usually the result of very extensive product testing and market research. As a market oriented organization, we develop a culture, which is fully committed to the continuous creation of superior customer value. We strongly believe that quality makes the difference between life and death. After successful venturing in the local market, we have now taken the challenge tore plicate the journey into the international arena.
External Environmental Scanning
PEST ANALYSIS
In order to identify variables in societal environment of Beximco Pharmaceutical Ltd. we have done the following PEST ANAYSIS
Political/Legal
Unstable government in third world country: in some third world country especially in Asia and in Africa government are not stable. Government change quickly and so is their policy.
Foreign trade regulation: as the Beximco Pharmaceutical Ltd has to know the foreign trade regulation very well
Attitude towards the foreign: different government has different attitude towards the foreign product.
Economic
Price increase of raw material: Beximco Pharmaceutical Ltd uses a unique raw material. As the price of most of the product goes up company may have to spent more to buy raw materials.
Economic difficulties in Asia: in Asia, especially south east part, the economic difficulties is going on for a long time. It could be affect the sale of the product in those countries.
Increase of store rent in Bangladesh: store rent in Bangladesh is going up day by day. It also could affect the turnover.
GDP trends: GDP trend is some country could be an issue for Unilever product.
Wage increase: wage of labor has also increase. It can also increase the price of the product.
Inflation rate: as the inflation rate is much more hire than the before general consumer may not willing to spent on cosmetics as they do before. The industry growth rate may decline.
Socio cultural
Sluggish consumer spending
Low price oriented customer.
Some organization focuses on appealing to professional middle class consumer in suburban area.
Some stores were force to reposition in some area.
People want famous brand in cheap price.
Guaranteed refund.
Service style has changed. Employee followed customer to their cars.
Store has to design to offer one stop shopping with 40 departments.
Fake Product at lowest price
Technological:
Spending in industry for R&D: total spending on R&D in industry can increase. So Beximco Pharmaceutical Ltd may have rise their spending R&D