Boots Pharmaceutical Industry: SWOT, PESTEL, and Porter's Model

This report provides a comprehensive analysis of the Boots pharmaceutical industry. It begins with an introduction to the industry, highlighting its growth and importance in the global market, and then proceeds to analyze Boots specifically. The report includes industry data, identifies key stakeholders (internal and external), and performs a SWOT analysis to evaluate the company's strengths and weaknesses. It also delves into the challenges faced by the industry, such as expiring patents and increasing R&D costs. A PESTEL analysis examines the political, economic, social, technological, and legal factors influencing Boots. Furthermore, the report applies Porter's Five Forces model to assess the competitive environment, including competitor rivalry, supplier power, buyer power, the threat of new entrants, and the threat of substitutes. The conclusion summarizes the key findings, emphasizing the risks and opportunities within the pharmaceutical sector and the strategic implications for Boots. The references include books and journals that support the analysis.

BOOTS(SHOP)

Table of Contents
INTRODUCTION...........................................................................................................................1
Industry data................................................................................................................................1
Stakeholders of pharmaceutical company...................................................................................1
Strengths-....................................................................................................................................2
Weakness.....................................................................................................................................2
Challenges..................................................................................................................................3
Pestel analysis.............................................................................................................................3
Porters 5 model..........................................................................................................................3
CONCLUSION................................................................................................................................4
MAIN BODY...................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
In the world of globalization there are many industries that are working to meet to need of the
people residing in the various corners of the world. In the case of the heath, pharmaceutical
industry is growing in the paces leading some government issues regard to development. In this
the industry growth of pharmaceutical industry will be analysed along with the business plan of
boot. The swot analysis along with PESTEL analysis will be done for the influence of external
environment. The Porters five model will help in analysis of the competitive in nature to
understand the market. Issues faced by the company will also be discussed.
Industry data
the pharmaceutical industry in the world is one of the most growing industry contributing around
45% of the global market. there are many companies that are sending in a million for the
settlement of the industry in market. the industry is developing medication and other vaccination
to prevent the world for various diseases and improve the quality of life. There is large amount of
the technological advancement and more innovative research for the development of complex
health care facilities in the current economy there are major player Merck&Co and
Boots(Malerba and Orsenigo, 2015. ). Hence, the company is increasing drug prices which is
getting the situation worse along with the research and development of technological
advancement for the diseases. There is larger number of risk in establishing the ventures as
companies has to pass under the various law for the development of company.
Key Business, Stakeholders And Challenges
The key business of the boots has entered in pharmaceutical industry in which mainly the
development activities of the organization has taken place. The key business of the company is
too in the manufacturing and development of medicine and vaccination for the prevention of the
illness in human or animals. The other important development factor of company is analyse the
brand name in the long term for the reach and development of the medic and drugs in world for
the welfare of market.
Stakeholders of pharmaceutical company.
Internal stakeholders of Boots are-
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manufacturing department- these stakeholders play an important role in the development of the
medicine and vaccination for the economy. If the manufacturing department doesn't perform well
then the organization as to work according to that.
marketing department- the marketing department helps in sales of the medicine in the market. If
the sales is not done properly then the company will not abler to perform well in the
market(Khanna, Guler and Nerkar, 2016).
research and development- the research and development of the organisation has to work for the
technological advancement so that the company can have the innovation of diseases that are
prevailing in the market and welfare is needs.
external stakeholders-
consumers- the main consumer who consumes the medicine and vaccination are the one who are
the real gems of the Boots organization. The medicine has to prepare for thr welfare of
consumers only.
Regulator- the government owned body which set the code of conduct for the working of the
pharmaceutical companies to look after the working. No malpractices can take place so that the
working of the pharmaceutical companies is evaluated.
Suppliers- the provider of the raw material for the development of the organization who provide
the raw material as to develop the Boots organization. The company will have to take care of ther
management of the company.
Strength and weakness
Strengths-
The technology used by the pharmaceutical industry is cost effective
The manufacturing base of company is strong and well based.
Excellent proficiency is path breaking research.
Purity standard are high.
High development competencies in chemical and processing.
Weakness
strategic planning is lacking in the development process.
Duplication of production drugs.
Lack of association between the institute and the research and development department of
industry.
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Challenges
unprecedented challenges are faced by the pharmaceutical industry raising the concern as
increase in R&D, administrative and the cost of the management is increasing.
Some of these are the challenges that are faced by -
expiring patents
generic companies are increase the competitor
sales growth rates have move down.
The research and development department is lacking in the term of innovation.
Grandstands of regulatory body is strict nowadays.
Pestel analysis
Pestel analysis is referring the external factors that influence the Boots pharmaceutical industry-
Political- the pharmaceutical industry have to look after the rules and regulation of the country
abide by the taxes and the duties that have to be paid to the government(Weissman, 2017). The
implication of high duties are there as the company has to perform under the rules and regulation
of the country so that the rights of the civilian can be protected.
Economic- there are various economic factors that effect the price and sale of the product in the
country. If there is inflation in the country the price will be high will be out the reach of the
customers. Increase and decrease in the import export rates will help in analysis of the market
price of product(Gereffi, G., 2017.).
Social -the perception of the generic drugs are cheaper and are the adequate alternative of
expensive brand name drugs so that the people are more to the shift of purchasing the generic
disease and the market for the brand falls.
Technological- it plays an important role in the development of disease in the market but the cost
of technology to develop the medicine is 10 times the sales of its in first 5 years. The
technological advance leads to the development of company.
Legal- the legal law look about the regulation of as the authorized working body in the
development of the company. The company has to work under term and condition of the legal
law.
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Porters 5 model
it discuss the focus of the completion faced by the industry in the development of boots
company.
Competitors rivalry-there is the moderates level of the rivalry from the competitors in the
pharmaceutical industry. The major share completion is within the generic and adequate type of
medicine. The main revenue is generally generated by he major company holding the share of
40%. the level of competitor rivalry id moderate.
Bargaining power of suppliers-the power of suppliers are very high as th development of drug
industry is through retail only(Buncher and Tsay eds., 2019.). The retail has the total control on
sales marketing production and development is in the hands of suppliers only.
Power of buyer- the power is low of buyer as it is turned out as the essential need for the curing
of diseases so the buyer has to purchase the disease according to the need.
Threat of new entrants- the threat is very low for entrants as it require as large amount of
investment and research and development of technology to get success in the market as the threat
is low.
Threat of substitute- as the threat is relatively high as the patents risk is there . The loss of the
right of the patent is there as the generic diseases don't have the exact component as brand drugs
so the risk is high.
The key issue face by the manager is taking the operational decision in the development of the
company drugs. there are the various stakeholders that working In the respect of the organization
so that companies managers has to take the strict or the liberal decision for the development of
the companies policy The manager has to evalute the risk of the organization as increase the
efficiency and effectiveness of the organization.
CONCLUSION
The boots are working in the pharma industry is the industry that is having many strength and
weakness. The company have high degree of risk of threat of substitute. the threat is very low for
entrants as it require as large amount of investment and research and development of technology
to get success in the market as the threat is low. the legal law look about the regulation of as the
authorized working body in the development of the company. the government owned body
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which set the code of conduct for the working of the pharmaceutical companies to look after the
working.
REFERENCES
Books and Journals
Buncher, C.R. and Tsay, J.Y. eds., 2019. Statistics in the pharmaceutical industry. CRC Press.
Gereffi, G., 2017. The pharmaceutical industry and dependency in the third world (Vol. 4964). Princeton
University Press.
Khanna, R., Guler, I. and Nerkar, A., 2016. Fail often, fail big, and fail fast? Learning from small failures
and R&D performance in the pharmaceutical industry. Academy of Management Journal, 59(2), pp.436-
459.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry. Routledge.
Malerba, F. and Orsenigo, L., 2015. The evolution of the pharmaceutical industry. Business
History, 57(5), pp.664-687.
Mazzucato, M. and Parris, S., 2015. High-growth firms in changing competitive environments: the US
pharmaceutical industry (1963 to 2002). Small Business Economics, 44(1), pp.145-170.
Weissman, R., 2017. A long, strange TRIPS: The pharmaceutical industry drive to harmonize global
intellectual property rules, and the remaining WTO legal alternatives available to Third World countries.
In Globalization and Intellectual Property (pp. 255-311). Routledge.
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