Competitive Strategy for Pharmaceutical Patent -myassignmenthelp

Question: Discuss about theCompetitive Strategy for Pharmaceutical Patent Analyst. Answer: Introduction Competitive advantage of a company is referred to the leverage it has over its competitors which is generated by offering better and greater value. In order to generate a competitive advantage, leaders focus on implement business policies that are based on strengths of the enterprise. While implementing business policies for generating a competitive advantage, leaders have to evaluate the environment in which the company or its products/services operations. Effective evaluation of the environment assists management in creating business policies that provide the company a competitive advantage. This essay will evaluate SWOT analysis, Porters Five Forces framework and PESTLE analysis based on pharmaceutical, tourism and agriculture industry respectively. This essay will focus on Wesfarmers Limited, Qantas Airways, and Australian Pharmaceuticals Industries. SWOT Analysis The SWOT analysis is a useful tool that assists in identifying strengths, weaknesses, opportunities, and threats of a particular company or its product/service. The model was originally developed in the 1960s, and it has remained unchanged in the strategic management field (Culp et al., 2016). This model helps managers in developing their business strategies by assessing different external and internal factors that affect organisational performance. The factors in an external environment include government legislation, social expectation, changing trends, and competition. In contrast, internal environment factors include organisational culture, human resource capabilities, effectiveness of policies and leadership talent (Roghanian, Ghorbani, and Alipour, 2018). The model is used by different managerial personnel in a corporation at various levels. For example, the board of directors and executive officers use SWOT framework while implementing future business strategies. On the other hand, low and medium level managers use SWOT analysis while taking small business decisions while performing daily tasks. An example of Australian Pharmaceuticals Industries (API) is used in order to implement SWOT analysis. The company operates in the pharmaceutical sector, and it is involved in manufacturing, distribution and retailing of pharmaceutical, health and beauty products. Its strengths include the largest wholesale distributor of pharmaceuticals in Australia, offered a broad range of services, many landmark products, niche player in the over-the-counter market, and good overall growth rate (Almarsson, Peterson and Zaworotko, 2012). Its weaknesses include Sigma takeover controversies, alleged accounting discrepancies, the industry is dominated by three key players, Sigma, Symbion Health and API and the company might lose focus from its main products if it branches into new markets. Its opportunities include scope in development of personal care area, divesting of pharmaceutical assets for focusing on core competencies, and growth in awareness about healthcare. Threats include reforms in pharm aceuticals pricing scheme, trade barriers might hurt profit margins of the firm and stringent rules against clinical tests. Porter Five Force Framework It is a valuable tool aiming to analyse the immediate competitive environment of a company. It is an industry analyses framework which considers specific forces that determine competition in a competition (The Economic Times, 2018). The influence of these five factors facilitates economic potential and competitiveness of a sector. Industries share same attributes and the five forces model assists in identifying investment attractiveness, the impact of underlying drivers and assessment of the profit potential of companies. The forces include the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the competitive rivalry. The evaluation of these five essential factors assists in summarising the most important criteria to consider for analysing a specific industrys key drivers of success (Zhao et al., 2016). The top-level managerial personnel uses this model while entering a new sector or launching a new product in the market. An example of Qantas Airways is used in order to implement Porters five forces model. The corporation operates in travel and tourism industry, and it offers airline services to its customers. The company also enables its passengers to book tourism packages directly from its websites, and it is third most visited tourism websites in Australia. The bargaining power of buyers in the industry is high because a large number of local and international airlines operate in the industry and customers can easily switch between them without additional costs (Chen and Muzi, 2013). The bargaining power of suppliers is high because Boeing and Airbus are the primary aircraft manufacturer, and they can easily raise aircraft prices in the sector. The threat of substitutes is low because air travel is the fasters and more comfortable option than its alternatives such as bus, train, and car. The threat of new entry is lower because of high initial investment costs and strict governmental regulatory req uirements (Sarina and Wright, 2015). The rivalry among existing firms is substantially high because many low-cost airlines have entered the market which has reduced the profits of Qantas. The rivalry has also increased because of merger and acquisition in the industry. PESTLE Analysis A PESTLE analysis assists companies in analysing six of the key external factors that influence a business and decisions taken by the management. The external factors include political, economic, sociological, technological, legal and environmental. The model assesses the potential impact of these factors on a corporation. In this way, companies can prepare strategically for any future changes by being aware of the external market which provides them a competitive advantage (Fozer et al., 2017). The model enables organisations to determine the current role and status of the corporation in relation to its competitors and collected market information that assists management in creating future development strategies. The process of collecting important information that assists in the development of business strategies is called strategic audit, and a PESTLE analysis assists management in conducting strategic audit of the external environment of the corporation. This tool is used by seni or level managerial personnel to understand the current position of the company in the market and based on such information creating future strategies for sustaining the growth of the enterprise. An example of Wesfarmers Limited will be used for analysing PESTLE analysis. The company is a conglomerate which operates in different sectors such as retailing, agriculture, coal mining, chemicals, and others. This PESTLE analysis will focus on agriculture operations of Wesfarmers. Political stability and contribution of agriculture sector to 3 percent of the countrys economy is beneficial for the company (National Farmers Federation, 2017). The stable economy of Australia contributes to the growth of agriculture operations of Wesfarmers; however, the company faces higher wage costs than compared to other nations. The awareness regarding fresh and health food products is growing, and customers prefer to buy Australian grown products which are beneficial for Wesfarmers because its agriculture operations are situated in Australia. The company uses different modern technologies in its agriculture operations, for example, it has launched Decipher which is Google Earth Engine based comme rcial farming service which uses satellite images, processing power and geospatial data for providing in-depth vegetation analysis (Thompson, 2017). The corporation complies with Australian Agriculture policies in order to ensure that its food products are not hazardous for people, and they are manufactured without harmful fertilisers. The company has also implemented sustaining agriculture program in which it has collaborated with Carbon Trust Company which assist it in reducing its carbon emissions (Wesfarmers, 2018). In conclusion, different examples of companies from industries such as pharmaceuticals, tourism, and agriculture are discussed for understanding the role of strategy development tools such as PESTLE analysis, Porters five forces framework and SWOT analysis. Each tool enables management to evaluate external, internal or both factors which influence their business and the information collected by the tools allow the management to create strategic policies. Effective use of these tools assists companies in understanding current and future factors that affect their business and enable them to create strategic policies for sustaining their future growth. References Almarsson, ., Peterson, M.L. and Zaworotko, M. (2012) The A to Z of pharmaceutical cocrystals: a decade of fast-moving new science and patents.Pharmaceutical patent analyst,1(3), pp.313-327. Chen, Z.H. and Muzi, H.E. 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