Swot Analysis of Indian Pharmaceutical Industry

2nd July 2011
Saturday 10:04 PM
Banaras
My dear friend India's pharmaceutical market currently stands ninth in the world market for pharmaceuticals with a 1.5% share. Here is the swot analysis of Indian Pharma Industry. Hope that you will enjoy reading it.

STRENGTH Availability of Cheap raw material (most economical raw material in the world after China) Availability of professional manpower with good technical expertise  Low cost of production. Large pool of installed capacities Efficient technologies for large number of Generics. Large pool of skilled technical manpower. Increasing liberalization of government policies.

WEAKNESS Bad brand image of Indian Pharmaceutical Products in USA, UK & other western countries which is hampering exports Lack of Research & Development (R&D) orientation of Indian Pharmaceutical Companies Fragmentation of installed capacities. Low technology level of Capital Goods of this section. Non-availability of major intermediaries for bulk drugs. Lack of experience to exploit efficiently the new patent regime. Very low key R&D. Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world''s population). Very low level of Biotechnology in India and also for New Drug Discovery Systems. Lack of experience in International Trade. 9. Low level of strategic planning for future and also for technology forecasting.

OPPORTUNITY Very lucrative high profit making market with high chances of growth Increased awareness amongst people about Health Prodcuts Aging of the world population. Growing incomes. Growing attention for health. New diagnoses and new social diseases. Spreading prophylactic approaches. Saturation point of market is far away. New therapy approaches. New delivery systems. Spreading attitude for soft medication (OTC drugs). Spreading use of Generic Drugs. Globalization Easier international trading. New markets are opening.

THREAT Entry of other foreign competitors in the Indian market Other Business Risks Containment of rising health-care cost. High Cost of discovering new products and fewer discoveries. Stricter registration procedures. High entry cost in newer markets. High cost of sales and marketing. Competition, particularly from generic products. More potential new drugs and more efficient therapies. Switching over form process patent to product patent.