Report: SWOT Analysis of Amgen Inc. - Business Development

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Amgen, a multinational biopharmaceutical company. The strengths highlighted include a strong dealer community, stable financial position, low-cost structure, extensive distribution channels, a large asset base, skilled employees, a well-established organization with a strong IT system, strong IP protection, and a diverse product portfolio. Weaknesses include lower investment in research and development compared to competitors and a centralized decision-making model. Opportunities stem from technological advancements, a low inflation rate, the need for cures for various diseases, and increasing globalization. Threats include limited patent protection, changes in regulations, and dependence on third-party payers. The report also briefly touches upon Amgen's commitment to intellectual property protection, corporate social responsibility, and supply chain considerations, emphasizing its efforts in environmental sustainability and community support.

SWOT
ANALYSIS OF
AMGEN
P H A R M A C E U T I C A L C O M P A N Y

S TR EN GTH
• Strong dealer community
• The financial position of the company is stable
• The cost structure is low which makes the
price of the product also low
• The distribution channel and outlets are huge
and covered across every state (Santon,
2016).
• The asset base of the company is also huge
• The employees are highly skilled with
adequate training
• The organization is well established with a
strong IT system and presence in social media.
• The organization has strong IP protection
• The product portfolios of the organization are
available in wider categories (Amgen, 2015).
WEA K NE SS E S
• The investment in research and
development is less compared to
other company in the same industry
• The decision-making model is
centralized which can reduce the
efficiency of the operational
activities
Source: (Amgen, 2015)

OP P O RT U NI T Y
• The development in technology can
bring numerous opportunity that can
reduce the overall cost
• The inflation rate is low, and it would
benefit the organization as the cost of
the input material remain low, and the
inflation rate may be low for upcoming
years
• There is a need for a cure for many
diseases that can act as an opportunity
• Globalization and increasing tourism
activity would bring multiple
consumers
TH R E AT S
• The patent protection is limited and
can be highly challenged by hostile
competitors
• The changes in rules and legislative
regulation would have an impact on
the operational activities
• The sale of a product depends on the
third-party payers and may affect
the pricing. (Kenton, 2020)

REFERENCES
Amgen.(2015). "Do The Right Thing."
Kenton, W. (2020). Supply chain. Retrieved from
https://www.investopedia.com/terms/s/supplychain.asp
Santon. D. (sept, 2016) biopharma-reporter. The end of Abbvie best
seller. Retrieved from:
https://www.biopharma-reporter.com/Article/2016/09/26/USFDA-ap
proves-Humira-biosimilar-amid-AbbVie-and-Amgen-IP-battles