ACCT5003 - CSL Limited: Competitive Strategic Position Analysis Report

This report provides a comprehensive analysis of CSL Limited, a biotechnology company, focusing on its market position and strategic approach. The analysis begins with an introduction to CSL Limited, its industry, and its listing on the Australian stock exchange. The core of the report applies Porter's Five Forces model to assess the competitive landscape, examining the threats of new entrants, the bargaining power of buyers and suppliers, the threat of substitute products, and industry rivalry. Following this, a SWOT analysis is conducted to identify the company's internal strengths and weaknesses, alongside external opportunities and threats. The report then identifies CSL Limited's business strategy, emphasizing its focus on diversification, employee training, value-based culture, and innovation in vaccines. The conclusion summarizes the key findings, highlighting the company's strengths in corporate governance and product innovation while also acknowledging challenges related to employee retention and supply chain management. The report concludes with a list of references.

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Table of Contents
INTRODUCTION:..............................................................................................................2
PORTER’S FIVE FORCES MODEL:................................................................................2
Threats of New Entrants:.................................................................................................3
Bargaining Power of Buyers:...........................................................................................3
Threat of Substitute Products:.........................................................................................3
Bargaining Power of Supplier:........................................................................................3
Industry Rivalry:..............................................................................................................4
SWOT ANALYSIS:............................................................................................................4
BUSINESS STRATEGYOF CSL LIMITED:.....................................................................5
CONCLUSION:..................................................................................................................5
REFERENCING:.................................................................................................................7

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INTRODUCTION:
This report provides complete insight about CSL Limited and their market position. CSL
Limited is a biotechnology company. It was founded in 1916 in Australia. The company mainly
conduct their business in Pharmaceuticals, Biotechnology and Life Science industry. CSL
Limited is a listed company of Australia, with a market ticker of “CSL”. In order to analyse the
marketing position of the company Porter’s Five Forces model and SWOT analysis. This report
also states about the business strategy adopted by CSL Limited.
PORTER’S FIVE FORCES MODEL:
Porter’s Five Forces model is a holistic strategy model that assists the management of the
company to analyse more than just present competition. In order to understand the market
position of CSL Limited this report implements the Porter’s Five Forces model.

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Threats of New Entrants:
In Pharmaceuticals, Biotechnology and Life Sciences industry the new entries often bring
new technology in the market with reduces the price of the product. This hampers the market
base of CSL Limited. In order to mitigate such problem, CSL Limited needs to focus more on
their research and development department, so that they can maintain their customer’s interests
over their products ("Csl Limited Porter Five (5) Forces & Industry Analysis Strategy". 2020).
Bargaining Power of Buyers:
In minimum price the buyers aspires to get high quality product. This creates substantial
pressure on the company, as the profitability of the company gets affected in the long run. In
order to mitigate such problem CSL Limited needs to increase the customer base. CSL Limited
can also introduce new product in the market, which will reduce the defection of the customer.
Threat of Substitute Products:
The new substitute products in the industry actually affect the industry profitability. The
threat of substitute product or service can become matter of concern when the vale propositions
of new products are different than other product in the market. The companies can mitigate such
problems by transferring their policies from service oriented to product oriented.
Bargaining Power of Supplier:
Suppliers play a major role in the profitability structure of CSL Limited. In many
instances it is seen that the powerful suppliers uses their negotiating power to increase the prices
of the product in the industry. This directly reduces the profitability of the whole industry. In
order to reduce such problems CSL Limited needs to create an efficient supply chain network.

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Industry Rivalry:
The pharmaceuticals, biotechnology and life sciences industry consists of very high
competition. The profitability of CSL Limited affected due to such problem. The best way the
company can compete in the market is to create scale. The company can also collaborate with
competitors to reduce such problem.
SWOT ANALYSIS:
SWOT analysis assists the management of the organization to identify the internal
strategic factors of the company. It identifies the strengths, weakness, threats and opportunities
of the company. It helps the company to penetrate into new markets ("Csl Limited SWOT
Analysis Weighted SWOT Matrix". 2020). This report tries to investigate the internal factors of
CSL Limited through SWOT analysis.
STRENGTHS
 Successful track record for creating
new products.
 Employs some highly skilled
workforce.
 Performed very well in new market.
 One of the most developed market
strategies.
 Maintains strong dealer community.
WEAKNESS
 Not good for product demand
forecasting and thus, misses lots of
opportunities.
 Unable to introduce new product in the
market.
 The company suffers with high attrition
rate.
 The work culture is not up to the
industry standard.
THREATS
 Paris agreement that took place in 2016
OPPORTUNITIES
 The introduction of new tax policy can

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can affect the business of the company.
 Changing of buying pattern among the
customers may affect the profitability
of the company.
 The introduction of new innovative
products in the market.
 The pay level of the workers is
increasing.
boost the productivity of the business.
 The ever-changing market leads to the
dilution of new entrants.
 The decrease of inflation rate boosts the
overall economy of the company.
BUSINESS STRATEGYOF CSL LIMITED:
CSL Limited aspires to diversify their area of expertise. In order to do so the company
spends considerable percentage of amount for training their employees (Csl.Com. Accessed
March 16 2020). The training are focused on increasing the knowledge set of their employee.
The company also focuses on improving their value based culture which actually strengthens
their corporate governance. The unwavering specialisation in creating vaccines assists the
company to gain financial performance. Spending considerable amount of money in R&D
department assists the company to introduce new products in the market on a regular basis,
which ultimately increases the profitability of the company.
CONCLUSION:
After analysing the internal and external marketing strategy, it can be determined that
CSL Limited mainly focuses on improving the corporate governance and innovation of new
products. These factors enable the company to generate profit from the market. In spite of such
strengths, the company still failed to retain their employees. The rise in the disruption among the

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dealer also affects the company’s supply chain network. Thus, company also needs to focus in
their supply chain network, so that they can maintain their supremacy in the market.

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REFERENCING:
"Csl Limited Porter Five (5) Forces & Industry Analysis Strategy". 2020. Fern Fort University.
Accessed March 16 2020. http://fernfortuniversity.com/term-papers/porter5/asx/1733-csl-
limited.php.
"Csl Limited SWOT Analysis Weighted SWOT Matrix". 2020. Fern Fort University. Accessed
March 16 2020. http://fernfortuniversity.com/term-papers/swot/nyse/5922-csl-limited.php.
Csl.Com. Accessed March 16 2020. https://www.csl.com/-/media/csl/documents/annual-report-
docs/csl-ltd-annual-report-2019-full.pdf?la=en-
us&hash=AC57DA1C6E85B66162B25238509C47596E1CA401.