Swot Analysis Of Cipla

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Looking at the global perspective and the global environment in the pharmaceutical industry, it can be seen that Indian pharmaceutical companies are major outsourcing hubs for pharma companies worldwide. There is a lot of R&D going on in India and thus there have been number of innovations that have come up at each and every step of the value chain in the industry. In the near future we will see that Indian companies are not only an outsourcing platform but also competitors to the global firms, becoming a threat to them.

The changes in the environment are occurring at a very high pace with regard to foreign companies in the west slowing down with new patents and with the reduction in innovation there are very few drugs which will be able to
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Apart from India, Cipla is present in Africa, 30 countries of Europe, North America, Middle East, Asia Pacific, China and Russia. The count of the countries itself is a proof of the abilities and strengths that Cipla has over its competitors which operate in some of the above mentioned countries but not all of them.

Industry Environment Analysis
The business environment today is highly competitive and sustaining in the market is difficult when there is innovation all around and all the players in the market tend to snatch away your market. Getting at the top is an easy task which can be attained by may be one right step but staying there is neither easy nor attainable as there are other players in the market who might copy your strategy, reduce their products’ prices, offer better product or might apply any other strategy. Thus, for analyzing the industry environment, the best model is Porter’s Five Force model (done below).

Power of Suppliers
• The companies place the order for raw materials with the suppliers in large quantities and thus the companies are at an advantage over the suppliers. This makes them more powerful and theus the suppliers have to agree to the terms of the companies
• There are numerous suppliers of raw materials for the companies and thus there is no bargaining power with the
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Though this is happening and companies are dedicated only towards generic products, generic medicines are only possible once the actual medicine gets off-patented
In all, the threat from substitutes is low and this will benefit the whole industry and not only some particular companies.

Industry Competition
• The brands at present are highly competitive with each other and are continuously trying to capture different market segments or are trying to snatch the existing market segments with their competitors
• There are many alliances, mergers and acquisitions that are forming among the big players and this is acting as a competitive advantage for the merged bigger organizations
• Companies like Sun Pharma and Ranbaxy are working together to access each other’s markets and to have a bigger control over the industry as a

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