Analysis of the Industry Form
According to Bruce (25), the pharmaceutical market has been on a constant rise in the last two decades. With the changing lifestyle, several lifestyle diseases are on the rise. With this massive growth of the market for this product, various firms have come out with various brands of medicine to tap on the growing opportunity for this product. ABC has been one of the leading firms that have been considered as the leading pharmaceutical firms in this country.
This firm is facing serious market competition from other firms in the manufacture and sale of medicine in the United States and other overseas countries. Several firms have proven to be serious threats to ABC in this industry for several reasons. The United States remains that most attractive market for medical products. The market is large enough, and the purchasing power is strong enough to support the industry (Grundy 48).
Most of the Pharmaceutical companies are American companies. They, therefore, enjoy the same privileges in this market. The second reason that makes these firms serious challengers of ABC in the market is the niche it has acquired in the market. ABC has positioned its products as high-end products. It is spreading its target to other segments. It is now targeting the middle-class consumers with products having fair prices, but still holding to its initial market proposition. This was after the realization that this class has a high percentage of people who need medical attention.
ABC has been keen on its marketing strategy. According to Michel (89), one of the most powerful tools that a firm has in the market is the ability to reach out to the customers with the desired message in the best way possible. The management of ABC has come to realize that this is one of the strongest tools that other firms are using today as a way of developing a competitive advantage in the market.
Recent reports, however, indicate that some of the American pharmaceutical firms are dropping their positions in the market and new brands are set to take the lead in the market. ABC comes out as one of the leading manufacturers and distributors of medicine in this country. With a substantial market share, this firm has been keen on attracting more customers. However, the recent incidents are poised to change these figures. The emerging trends are favoring some firms while hurting others. ABC is one of the biggest beneficiaries of the emerging technologies in this industry (Pearson 112). It has become very popular, especially among middle and upper-class consumers.
Based on the above information, kindly fill the form below.
- What should the marketing team of ABC do attract low-class consumers within the local and International market?
- What marketing proposition should ABC employ to avoid being seen as a firm that benefits from the misfortunes of the public?
- What are some of the major concerns in the emerging market in this industry that ABC should be conscious of?
- How can this firm transform the above-mentioned issues from being concerns to being competitive issues?
- How would you predict the future of this industry based on the changing market characteristics?
SWOT Analysis Form
To bring more understanding of the feasibility analysis of any project, a SWOT analysis is always appropriate. It would also help in understanding the strengths and weaknesses that come with the project. The strength of this project that would be transferred to the organization is a positive image in the market. The world is increasingly becoming sensitive to the impact of various business units on the environment.
The concern is emanating from the fact that it has been confirmed beyond any reasonable doubt that various multinational companies are polluting the environment at a very dangerous rate (Wootton 19). This project is expected to give this company a different image in the market. This company will be seen as a firm that is smarter in its environmental strategy. The market will be convinced that this company is not just interested in making profits, but also turning society into a better place. The firm will easily attract additional customers who are determined to make a positive difference in their society.
This is because they will view this firm as one that helps in conserving the environment. They will consider the purchase of the firm’s product as part of environmental conservation. As a result of this, the firm will develop a strong base of loyal customers. This firm may also take this advantage to reach out to the international markets. The project would give this company a moral right to claim that it is a champion of a clean environment in the entire world. The project has a team of dedicated and qualified staff who will be able to front all the interests of the firm in the duration within which the activity will take place. This team will also manage all the material resources that will be allocated to it to achieve the best results for the firm.
A project would always come with some weaknesses. One of the main weaknesses of a project is always a financial challenge. The initiative of managing the environment is very challenging financially. It would cost this firm, a large sum of money if it would sustain this project over the years it expects to operate in this market (Aggarwal 75). The local government must be convinced to participate in this project actively.
Other environmental agencies would also be invited to take part in the elimination of such wastes as plastic materials. The fact that the project would involve partnership with other firms, the success of the entire process may be jeopardized. Success would be pegged on how determined the other partners are in fulfilling their duties.
Based on the above information, kindly fill the form below.
- How can ABC ensure that it retains its current strength in the market?
- How can this firm use its strength in the market maximally to beat the market competition?
- What are some of the mechanisms that the management can employ to identify its weaknesses promptly?
- What are some of the strategies that this firm can use to ensure that it transforms its weaknesses into a strength?
- What are some of the best ways through which this firm can make maximum use of the opportunities as they arise?
- When should this firm consider a threat too big to be ignored?
- What are some of the best approaches that this firm can use to deal with the emerging threats in the market?
Competitor Analysis and Perceptual Map Form
In some cases, threats may not be visible, though the possibility of occurrence would be reduced considerably. One of the main threats that a project may face is price wars in the market. A firm may develop a pricing strategy as a way of developing a competitive advantage in the market. However, there is a possibility that the competitors may consider this move as a strategy that this firm uses to charge cheap for their products.
The impact of this is that the competitor may respond by equally lowering their prices in the market. Such price wars are always dangerous to the prosperity of a business. The initiative may fail to make any serious sense. However, this threat has been minimized by introducing other responsibilities for the project, and the invitation of the whole society to participate.
Based on the above background, kindly respond to the following questions;
- What approach should this firm take to manage the emerging competition from new and sophisticated firms in the market?
- How should this firm relate to its competitors both in the local and in the international markets?
- When should this firm consider competition as being destructive to future developments?
- To embrace competition as a healthy way of developing this firm, which competitive strategies should this firm avoid, and which should it embrace?
- What is your thought about employing the pricing strategy in the market?
- What are the benefits of a pricing strategy for a firm?
- What are some of the possible reactions that this strategy can cause in the competitive market?
- How can this firm respond to these reactions from the competitors in a way that will make this firm remain competitive?
- What are some of the shortcomings of this strategy in this industry?
- What are the predictions of the future competition in the market, and how can this firm deal with it?
Five-year financial forecast Form
A project always comes with several opportunities for the firm. It is always important to ensure that such projects would make the pricing of the firm appear fair to the customers without attracting the attention of other competitors in the market. The competitors should consider the move as part of the project for this firm. This will make this firm increase its market share. This way, the firm would be able to create a base larger number of loyal customers try their products, and confirm the quality (Barr 98). This would improve the financial status of the firm in the market. Having a strong financial base will help the firm be in a position to meet various financial obligations.
Based on the above information, kindly respond to the following questions;
- What is the current financial position of this firm about other firms in this industry?
- Can this firm implement most of its strategic plans based on its current financial status?
- Given the activities and projects that this firm has, what is the future of this firm in the market?
- What are some of the recommendations you will give to this firm to improve its current financial status?
Thanks a lot for helping us respond to these questions. They will go a long way in improving the performance of our firm.
Aggarwal, Saurabh. Brand Management: A Theoretical and Practical Approach. New Delhi: Global India Publications, 2008. Print.
Barr, Vilma. Promotion Strategies for Design and Construction Firms. New York: Van Nostrand Reinhold, 1995. Print.
Bruce, Andy. Strategic Thinking. London: Dorling Kindersley, 2000. Print.
Grundy, Tony. Be Your Strategy Consultant: Demystifying Strategic Thinking – the Cunning Plan. London: Thomson Learning, 2006. Print.
Michel, Robert. The New Strategic Thinking: Pure & Simple. New York: McGraw-Hill Education, 2006. Print.
Pearson, Gordon. Strategic Thinking. New York: Prentice Hall, 1990. Print.
Wootton, Simon. Strategic Thinking: A Nine Step Approach to Strategy and Leadership for Managers and Marketers. London: Kogan Page Limited, 2010. Print.