Strategyanalysis of Bangladesh Pharmaceutical Industry

Topics: Generic drug, AstraZeneca, Pharmacology Pages: 8 (2516 words) Published: February 11, 2011
Table of Contents

Bangladeshi Pharmaceutical Industry:2
Industry Analysis:2
Competitive Force 1: Rivalry among Existing Firms3
Competitive Force 2: Threat of New Entrants3
Competitive Force 3: Threat of Substitute Products3
Competitive Force 4: Bargaining Power of Buyers4
Competitive Force 5: Bargaining Power of Suppliers4
Competitive Strategy Analysis:5
Cost Leadership:5
Product Differentiation:5
Corporate Strategy Analysis:6
Conclusion:………………………………………………………………………………………………………7 Reference:8

Bangladesh is one of the ten most populous countries in the world. It is also one of the poorest. Access to even the most basic healthcare provision remains very poor, despite the ongoing efforts of the government, aided by considerable international assistance. Adequate secondary or tertiary care is beyond the reach of all but a very few people. Government hospitals are often little more than clinics, and suffer from severe shortages of trained staff. There is growing private hospital sector, largely based in Dhaka, which caters to the well-off. It is in the private sector where the most advanced services are located, and where almost all the demand for the pharmaceutical market will be found. Globally, political pressure for health care cost containment and reform have lead gradually to more favorable legislation and policies supporting increased utilization of generics. Many of the top generic companies who themselves are now huge global players have seized on the opportunities as wave of blockbuster patents expires. They have inspired confidence in generic drugs as high quality, therapeutic equivalents to the brand. Today the generics hold approximately 35% share of the total US market by volume and some are even out pacing the big Pharmaceutical companies in earnings performance. Indian companies are slowly but surely on the verge of penetrating this very lucrative market and yet Bangladeshi Pharmaceutical companies have not made any sincere effort to be in this regulated market. In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which are contributing in the country's 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 pharmaceutical professionals working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market. This sector is also providing 97% 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 high tech equipment and professionals which will enhance the strength of this sector. Bangladeshi Pharmaceutical Industry:

The Bangladesh pharmaceutical market in 2004 stood at approximately US $ 560 million, which is very small when compared to the population base of the country, which currently stands at about 140 million. To put this number on a proper perspective, the total global pharmaceutical sale in 2004 was $430 billion. This is expected to grow at 8.1% to about $530 billion in 2005. Of course the majority of the sale in 2004 was in brand products, the market segment where Bangladesh does not or is not expected to participate in the very near future. However today, the pharmaceutical companies in Bangladesh are one of the fastest growing sectors in the nation. Prior to post-liberation, the Multinational companies used to dominate the market but today this situation has been completely reversed. Now approximately 80% of the domestic pharmaceutical need is met by the local companies. In 2004, according to IMS data, the pharmaceutical industry in Bangladesh grew by approximately 20%. Today, there are about 225 registered pharmaceutical...
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