Internal and External Analysis of Boots Pharmaceutical Company

This document provides a comprehensive analysis of Boots Pharmaceutical Company, including its strategic position, threat of new entrants, threat of substitute products, bargaining power of suppliers and customers, and rivalry among competitors. It also discusses the company's internal factors such as product innovation, brand values, marketing, human resources management, and supply chain management. The document concludes with recommendations for the company.

Strategic position of Boots Pharmaceutical Industry
Around 70,000 people are employed in UK in the cited firm. In context to Ireland, this
figure is 1,900. The company recently alliances with Walgreens which helped in
strengthening the brand image. After the merging the number of the employees raised to
400,00 and the total operational revenue gets doubled. According to the annual report, the
statistics of 2016 were observed to be favorable to the alliance. The gross profit is obtained
to be 53.1 million whereas the operating income is 44.7 million. In addition to this, the
major emphasis is given to the competitive advantage. This technique helps in becoming a
leading player in front of the major competitors that will directly increase the company sales
Internal analysis of Boots Pharmaceutical Industry
Product Innovation: Boots pharmaceutical industry is a leading player in innovating
the product according to the recent trends. This innovation helps it in keeping the
competitive advantage in front of the major competitors.
Brand Values: Brand image is a component that influence the customers to trust on the
services. Consequently, this domination helps the Boots pharmaceutical industry in
gaining competitive advantage from the major competitors.
Marketing: The method of the marketing is the most effective tool in which any
organization can gain competitive advantage.
Human resources management: . Human Resource team ensures the proper training of
the workers so that they can attain the entire skill set required in the various operations
of the business.
Supply chain management: The supply chain management on the Boots
Pharmaceutical company is recommendable.
CONCLUSION AND RECOMMENDATIONS
It can be concluded from the above analysis that; Boots company has the better and
effective strategic position in the market which lead to attract customers. Apart from this,
human resources and supply chain both kinds of the management system within this
pharmaceutical firm is effectual and best.
 The Boots pharmaceutical enterprise should employ product differentiation
tactics in the workplace which lead to attract huge number of customers.
 Further, it can be advised to the Boots firm then it needs to enter in new and
international market because as of now it operating within UK market only
 Boots pharmaceutical firm requires to consider cost management strategies as
well which will support to reduce prices of the medicines
External environment of Boots Pharmaceutical Industry
Threat of new entrants: Very first aspect of the selected model of external environment
analysis is threat of new entrants which reflect level of barriers of potential firms in order to
enter in pharmaceutical.
Threat of substitute products Under the pharmaceutical industry threat of substitutes is
lower to the moderate situation because very limited substitutions are there. The Boots
company has basically two kinds of substitutes which are like natural remedies as well as
generic medicines.
Bargaining power of suppliers: In the industry of pharmaceutical, wide range of suppliers
available who are of the two categories basically like raw materials providers as well as
manufacturers.
Bargaining power of customers: Another aspect of the Porter's Five Forces model is
bargaining power of the buyers which shows that, customers have power to bargain with
firms up to which extent.
Rivalry among existing competitors: In the pharmaceutical sector there are wide range of
firms operating which lead to create high level of competition in the market
INTERNAL AND EXTERNAL ANALYSIS OF BOOTS PHARMECEUTICAL COMPANY
BACKGROUND AND INTRODUCTION
Boots Pharmaceutical Industry is founded 168 years
ago in Nottingham, United Kingdom with an objective
to improve the health and well-being of local
communities. The entity headquarters in Beeston,
Nottingham, UK. Initially, it started with herbal
medicines that were sold in year 1860. This long span
of the company helped in creating a tremendous brand
image in the pharmaceutical sector. The area served
by the Boots Pharmaceutical Industry includes UK,
Ireland, Norway, Thailand. etc. However, it may be
recognized that the major among them are UK and
Ireland.
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