I am choosing J&J to do a SWOT analysis.
Strengths
They provide to three different segments: consumer products, pharmaceuticals and medical devices. This helps them have a higher presence in the market compared to some other companies that provide only to one segment. They are a trusted brand among the medical practitioners and the consumers. They have a large sales force, which allows them to reach a broad range of customers both domestically and internationally.
Weaknesses
The company is involved in a lot of lawsuits. When there are fluctuations in the market, the operations are disturbed since it is a global brand.
Opportunities
There are new research and findings that can lead to new technologies, which will create opportunities for increasing market share. There is an increased demand of medical products, which will increase the benefits.
Threats
There is increasing competition which might cause a decrease in J&J's market share. They had some of their products recalled from the market before, which creates a negative impact for the brand.
Bristol-Myers Squibb Co (BMS) which is a global biopharmaceutical company that discovers, develops, license, manufacture, sell and distribute medicines to patients. Its main focus is on cancer, cardiovascular, immunology, and virology therapeutic projects. (Ref. BMS website)
SWOT Analysis:
1. Strengths:
- Innovation
- Strong focus on Research and development
- High ranking among medical devices companies (#14 globally per Pharmaceutical Executive - 2018)
- Successful strategic investment in healthcare business and medical devices marketing
- High level of customer satisfaction
2. Weaknesses:
- Investment in Research and Development is not as fast as other growing companies in the healthcare industry
- Not very strong in integrating firms with different work cultures
- Gaps in the product range
- Weak presence in biologics division
3. Opportunities:
- New customers from the online channel
- Different pricing strategy can be followed using new technologies
- The growing biologic therapy cancer market
- The growth and development in biopharmaceutical companies which means the opportunity for more new agreements
- A new era of digital technology for healthcare transformation
4. Threats:
- Changes in FDA or US rules or regulations
- Changes in financial conditions
- The high competition in the healthcare industry
- The need for highly profitable products is seasonal
(Ref. fernfortuniversity & swotandpestle websites)
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SWOT analysis for Becton Dickenson (BD)
Strengths:
- Strong Free Cash Flow
- Highly successful at Go To Market strategies for its products.
- Good Returns on Capital Expenditure
- Highly skilled workforce through successful training and learning programs.
- Successful track record of developing new products – product innovation.
- Reliable suppliers
-High level of customer satisfaction
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Weaknesses:
- There are gaps in the product range sold by the company.
- Financial planning is not done properly and efficiently.
- The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.
- Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors.
- Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel.
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Opportunities:
- Lower inflation rate
- The new technology provides an opportunity to Becton Dickinson to practices differentiated pricing strategy in the new market.
- Stable free cash flow provides opportunities to invest in adjacent product segments.
- Economic uptick and increase in customer spending.
- New customers from online channel
- New trends in the consumer behavior can open up new market for the Becton Dickinson.
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Threats:
- Changing consumer buying behavior from online channel.
- New technologies developed by the competitor or market disruptor.
- Liability laws in different countries.
- As the company is operating in numerous countries it is exposed to currency fluctuations.
- Shortage of skilled workforce in certain global market.
- No regular supply of innovative products
SWOT analysis of GE Healthcare company , GE Healthcare is a unit of the wider General Electric Company . It has a global orientation, employing more than 46,000 staff committed to serving healthcare professionals and patients in over 100 countries. GE healthcare has a wide range of product and services that include medical imaging and information technology, medical diagnostics, patient monitoring systems, performance improvement solutions, drug discovery, and biopharmaceutical X-ray products.
GE Healthcare SWOT strengths: Innovation research and development, Broad product business units, Global orientation, Superior technology, Ability reinvent itself to deal with changing times, Strategic alliances and agreements, Awards and recognition.
Weaknesses: Fluctuating revenues/profits, Voluntary product recalls, Environmental legal constrains.
Opportunities : Growing aged population, Market potential, Emerging markets, New product launches.
I choose to perform a SWOT analysis on Cardinal Health:
Strengths: Incredibly large stream of revenue, generating over $136 billion in 2018
Cardinal Health, Inc.
Strengths
Large revenue stream ($136.8 billion in 2018)
Cardinal Health, Inc. (CAH)
Strengths
Large revenue stream ($136.8 billion in 2018)
Large audience (over 100,000 product locations)
Large share of hospital market (over 75% hospitals with CAH equipment)
Cardinal Health, Inc. (CAH) general SWOT analysis:
Strengths
Large and growing revenue stream ($136.8 billion in 2018 and up about 190% since 2005)
Large audience (over 100,000 product locations)
Large share of hospital market (over 75% US hospitals with CAH equipment)
Largest share of nuclear pharmacies in US
Weaknesses
History of fiscal accounting mismanagement
History of drug/medical device supply mismanagement with distributors/customers
History of lax treatment from DEA resulting in lack of law enforcement oversight
Opportunities
Continued product expansion through acquisitions and new product development
Worldwide influence and medical device distribution
Threats
Increased US and worldwide regulation
Limitless market competition
Maturity and decline of current devices/products
The product I chosen for SWOT analysis is the LIFEPAK automatic electrical defibrillator product series manufactured by Physio-Control, recently acquired by Stryker.
Physio-Control reported $503 million in sales in fiscal 2015,
680 million US$ in 2019,
STRENGTH
Physio-Control Strength makes several models of automatic electrical defibrillators.
called LIFEPAK. It was recently acquired by Stryker.
Physio-Control has a large market share in the AED market space
Physio-Control has a long history in heart monitoring instrumentation.
In fact the inception of the company started with a hear monitor product as it first product
http://www.fundinguniverse.com/company-histories/physio-control-international-corp-history/
Opportunity
The worldwide market for Automated External Defibrillator (AED) is expected to grow at a CAGR of roughly 5.4% over the next five years, will reach 930 million US$ in 2024. Site by the site below:
With the IoT and the penetration of many technology enabled health devices
Physio-Control is well place to take advantage
Weakness
Physio-Control was just acquired by Stryker. The leadership at Stryker may be less prepared to make appropriate changes to respond to the FDA recall on LIFEPAK product line.
Threats
Physio-Control is an FDA recall on one of its product in its product line just occurred this last year. FDA site notes the following “Physio-Control is recalling its LIFEPAK 15 Monitor/Defibrillator because the device may "lockup" (freeze) after a shock is delivered.”
Customers may be influenced to stop by LIFEPAK due to FDA recall
I am choosing Edwards Lifesciences for SWOT analysis :
STRENGTH
1. largest maker of heart valves
2. strong free cash flow to expand into new peoducts
3. increases R&D gives competitive aadvantage
4. high level of customer satisfaction
5. strong brand portfolio
WEAKNESS
1. need more invest in new technology
2. product recalls may have a negative impact on the brand image
3. financial planning is not done properly and efficiently
OPPORTUNITY
1. opening up to new market because of government agreement
2. decreasing cost of transportation due to low shipping prices
3. growing incidence of cardio vascular disease
4. new customer from online channel
5. reaching emerging economies through tie ups and association
THREAT
1. intense competition could reduce company's market share
2. shortage of skilled workforce
3. no regular supply of innovative products
4. changing consumer buying behavior from online channel
I'll do Becton, Dickinson and Company (BD).
1. Strengths:
-Diverse Product Portfolio
-Global Presence
-Focus on Innovation
-Critical Role in Healthcare Infrastructure --> supplying essential products
2. Weaknesses:
-Regulatory Compliance Pressures
-Integration Challenges from Acquisitions --> Adding new lines and integrating them (double edges sword)
3. Opportunities:
-Digital Health Integration
-Emerging Market Expansion Strategies
-Personalized Medicine Solutions
4. Threats
-Supply Chain Vulnerability - Pandemics
-Regulatory Compliance Changes (more in regions such as EU)
-Competition
