Analysis the model of SWOT, BCG and Space matrix- 123docz.net

2.3. Facility development strategy of herbal medicines Corporation Traphaco

2.3.3. Analysis the model of SWOT, BCG and Space matrix

Through the analysis of external environment, internal environment, the macroeconomic factors and industry affecting to the operation of pharmaceutical industry of Vietnam in general and the herbal medicine of Traphaco particular, we can locate the position of the herbal medicine of Traphaco on the market. However, to choose a proper strategy for the development of herbal medicine of Traphaco, let’s review the strengths, weaknesses, opportunities and threats the Corporation Traphaco select to develop the herbal medicines through the matrix model of SWOT as below:

Table 2.14: Analysis SWOT

STRENGTHS WEAKNESSES

- Modern facilities with factories meeting the standards of GMP - WHO firstly in Vietnam;

- The most famous brand name in the pharmaceutical industry of Vietnam;

- Good financial situation;

- Strong and stable source of capital;

- Shares of company has high liquidity;

- Production facilities and storage systems are dispersed away from the production areas and can not meet the demand of LEAN in managing the enterprise;

- Do not exploit fully the operation capacity of the factories;

- A number of middle managers are stagnated, not subject to renew the

- Take the initiative of material resource;

- Large system of distribution / dealer of products in many cities and provinces around the country;

- Good Research and development;

- Products are quality and prestige, there are five the best and the most famous products in the same treatment group;

- Good, dynamic and united leader board;

- Young team of employees;

- Well-trained pharmacists.

thinking;

- Arranging and organizing the staff is not reasonable in some functional departments;

- Distribution Systems in the Central, South are weak;

- Some imported raw materials depend too much on the suppliers (Sources of material, exchange rate fluctuations, and sale policies of large firms).

OPPOTURNITIES THREATS

Domestic market:

- Vietnam's population is about 86 million people, the demand for drugs is increasing, the domestic pharmaceutical market is in its growth period: More than 14% per year;

- Politics is stable, good security.

State policies encourage and pay much attention to the drugs which origin from the herbs;

- People's living standards is increasingly high, concerning more about the matters of health care;

- The general trend of the Vietnamese and the human in the world is to return to use the medicines with the natural origin;

- Price of herbal medicine is cheaper

- Since Vietnam officially joined WTO the large pharmaceutical corporations in the world have come to Vietnam, these corporations directly distribute pharmaceuticals and build the manufacturing plants in Vietnam;

- The fierce competition of the domestic pharmaceutical companies (Hau Giang, Domesco, Nam Duoc, Phuc Hung,...);

- Some pharmaceutical companies are investing in building GMP - WHO pharmaceutical factory.

- A series of small companies and production facilities of herbal medicines make the counterfeits;

- The pharmaceutical industry will be

than that of western medicine suiting with the majority of people;

- Under the government’s plan, the proportion of the herbal medicine accounted for 30% (2015) up to 40%

(2020) domestic drug producing market.

Foreign market:

- The countries in the region such as Laos, Cambodia, Myanmar and African countries increasingly rely on the medicines of Vietnam with reasonable price and good quality

subject to the great competition when performing to open under the route of WTO.

Through analyzing the model of SWOT as above, it is clear that Traphaco will be successful with the development strategy of medicines, and superior to the other competitors in the same industry when selecting the combined strategy of SO if well coordinate the strengths and opportunities of the enterprise.

However, to ensure the choice above, we will use the model of BCG to clarify Relativity Market Share

High Low

Herbal medicine : - The domestic pharmaceutical market mostly belongs to the foreign pharmaceutical companies for over 60%, Traphaco is ranked at No. 5 in market share and accounted for 4.5% market share of medicine in general, but for the herbal medicine, the Traphaco is the top enterprise;

- Trends to use the herbal medicine is increasingly growing;

- The speed of growth in producing

Functional Foods

This is a field exploitation new products of TRAPHACO.

LOW SPEED OF GROWTH

the herbal medicine at Traphaco is maintained at relatively high levels.

Westem medicine: Traphaco has western medicines factory meet the standards of GMP ASEAN.

Import and export array: Products are mainly imported medicines in the trust, but the big capital investment to achieve a very low profit. The Company earned fees trust 1.5%.

Figure 2.9: BCG MATRIX

According to the BCG, the trading of herbal medicine at Traphaco is located at the Star (the area with high growth and large market share), the company still gets high profit if it continues to invest in herbal medicines.

Thus, by using two models we find the selection of combining the strengths and opportunities in the process of implementing the development strategy in the period of 2011-2015 at Traphaco is a right direction helping the company accomplish goals that the strategy proposed.

Table 2.15: External Factors Environment (EFE) of Traphaco Company in comparison with competitors (in the Herbal medicine)

No. External factors Weight Traphaco OPC DHG IMP DCL

Rating Weight Score

1 GDP Growth 0.2 3 0.45 3 0.45 3 0.45 3 0.45 3 0.5

2 Legal system 0.1 3 0.3 3 0.3 3 0.3 3 0.3 3 0.3

3 Development of Pharmaceutical industry

0.3 5 1.5 4 1.2 3 0.9 2 0.6 2 0.6

4 Consumption

trend

0.15 5 1.25 4 1 2 0.5 2 0.5 2 0.5

5 Competition 0.1 4 0.4 2 0.2 3 0.3 2 0.2 2 0.2

6 Substitution products

0.1 2 0.2 2 0.2 2 0.2 2 0.2 2 0.2

Total 1 4.1 3.35 2.65 2.25 2.3

(Point scale: 1 - very weak; 5 – very strong ) Source: Vietnam Pharmaceutical Association

Table 2.16: Internal Factors Environment (IFE) of Traphaco Company in comparison with competitors (in the Herbal medicine)

No. Internal factors

Weight Traphaco OPC DHG IMP DCL

Rating Weight Score

1 R&D 0.2 5 1 4 0.8 3 0.6 2 0.4 2 0.4

2 Technology 0.1 3 0.3 4 0.4 5 0.5 3 0.3 3 0.3

3 Finance 0.1 3 0.3 2 0.2 5 0.5 4 0.4 2 0.2

4 Distribution

channel 0.2 5 1 2 0.4 5 1 3 0.6 2 0.4

5 Human resource 0.05 4 0.2 2 0.1 5 0.25 3 0.15 2 0.1

6 Trademark 0.25 5 1.25 4 1 2 0.5 2 0.5 3 0.75

7 Material resource 0.1 5 0.5 4 0.4 2 0.2 2 0.2 3 0.3

Total 1 4.55 3.3 3.55 2.55 2.45

(Point scale: 1 - very weak; 5 – very strong ) (Source: Vietnam Pharmaceutical Association )

Figure 2.10: Space Matrix

Attack

Careful

4,45 Traphaco Company

CA 0 4,1 IS

Competition Defense