Introduction
Arguably, a SWOT analysis assesses and identifies weaknesses, strengths, opportunities and well as thereat an organization faces. As a matter of fact, a AWOT analysis on a pharmaceutical company point up to the management and the stakeholders what the company needs to improve. What is excelling in, preemptive measures to be undertaken, as well as the possible opportunities that will enhance growth. These aspects are aimed at protecting the value and assessment of the company and the stakeholders. A good fit for a pharmaceutical company and any other company are to maximize the opportunities and strengths, and on the other hand, minimize its threats and weaknesses. In this case, the Takeda Pharmaceutical Company is one of the largest pharmaceutical companies in Japan. Certainly, the company engages in the development, discovery, marketing as well as manufacturing of a wide range of pharmaceutical drugs such as allergic drugs, enzymes, vaccines, antihypertensive drugs, saratrodast, as well as other pharmaceuticals. In addition, Takeda Company markets its drugs in approximately 90 countries and operates basically in Japan (Datamonior, 2010).
SWOT analysis
Strengths
Increased market share-Four segments
The strengths of a pharmaceutical company incorporate capabilities and resources that can be utilized to develop and achieve competitive advantage. These components that make up company strengths provided quality and valuable goods and service. Takeda has impressively performed and developed in the markets; hence, they have tremendously increased their market share in four disease segments. Moreover, it is a key player in hypertension, Gastroenterology, hormonal cancer, and diabetes segments. Through this product mix, the pharmaceutical company has converted most of its revenue to operating profits.
Cash reserves for investment
Takeda company has a consistent profit margin; hence, they are in a position to focus and maintain a good proportion of the stockpile and earnings as a vast cash reserve. The availability of cash reserve enables the company to conduct other business dealings. The company utilizes the cash stance to steer corporate strategy to increase externalization strategies, as well as incorporating developmental collaborations (Datamonior, 2010). The capability to invest strengthens the company's portfolio. In general perspective, the availability of cash reserve for investments gives Takeda company a chance to conduct various deals such as once R&D pipelines.
Diverse development activities
Recently, Takeda has invested tremendously on strategic focus and remains committed in developing treatments in various lifestyle indications. The company has diversified its business by opening various research centers as well as promoting development and discovery across therapy areas. Apart from onco, Takeda has invested in in-house research on lifestyle –related diseases. This includes inflammatory, urological, GE, and CNS (central nervous system disease).
Reinforcement by US market position
Geographically, Takeda is one of the best position players among Japan pharmaceutical companies. Through the exercise of joint ventures and out-licensing the company has increased its strength. For example, this has been achieved through joint ventures with TAP to facilitate penetration of western markets that are too lucrative. Since then, Takeda has launched medications in Europe, and US through the utilization of improved infrastructure on the globe. The M&A and R&D operations will help with optimization of Takeda in United States. In addition, Takeda has carried out many promotional activities in efforts to position its business in the US. In addition, Takeda in into providing US markets with in-licensing deals to facilitate growth of its markets in the US (Datamonior, 2010). The Takeda Pharmaceutical company is in a position of deriving various benefits from restructuring itself in US. It is evident that Takeda’s annual revenue will increase. Other Takeda’s strengths include an abundance of Large-stage drugs in development, and strategic positions endocrinology market (MacLennan, 2004).
Weaknesses
Takeda’s blockbusters face generic erosion
The major franchise of Takeda includes Prevacid, Actos, Enantone, and Blopress. The strengths of Takeda are based on the implication of the major blockbusters. The dependency of Takeda on these blockbusters will come to light when competition in the same field increases. With time, the four blockbusters will lose its patent protection. In addition, the four blockbusters that Takeda depends on will have its patent expire by the year 2012.
Slow-growth disease markets
The core portfolio has been weakened by a narrow band that entails maturing diseases. Specifically, the lack of diversity in pharmaceutical classes within Takeda Company is another weakness of the company because there are upcoming major drugs that assert a lot of pressure to the four blockbusters of Takeda Company. The arrival of other drugs that demonstrate high innovation is weakening the Takeda performance. Takeda is planning to counter the threats through expansion of brands and classes of drugs produced.
Opportunities
Leading oncology player
The company will focus on becoming one of the major and best onco players in the future. In fact, this is one of the tremendous moves because there is rising chances in the cancer drug segment, as well as the reshaping market on monoclonal antibodies. The realignment of Takeda on in-house development strengthens the company's future expectations in the onco segment.
Emerging markets
Takeda is also focused on driving development of the organic sector based on branded medications. The company is setting various branches due to ever expanding global markets. For example, Takeda continues to establish marketing subsidiaries and sales in Norway, Turkey, Mexico, as well as Belgium. Due to expanding global markets, Takeda is in a position to maximize this chance and increase its sales and revenue. There is also a possibility to expand in Ireland, Spain, Canada and Portugal.
Threats
Health care reforms
The company has tried to penetrate through US to establish new markets, but the health care reforms in Japan may hinder the position of domestic sales. The domestic markets of Takeda are still the strongholds in terms of revenue generation. The presence of Takeda in United States faces threats from generics, domestic markets, as well as the expiry of the patent. In addition, the Takeda Pharmaceutical Company is facing generic erosion. This is because the reforms made recently in Japan will lead to a reduction in health care spending. This strategy implemented to achieve this is a threat to Takeda’s sales and revenue (PharmaWatch, 2008).
Difficulties in driving sales of new launches
The strongholds of Takeda’s company are undergoing tremendous pressure from generic lansoprazole and piogiltazone. These strongholds are diabetes and GE. The company has established two strategies to counter this sort of threat. This is established through development of new products to keep up its market share; this products are dexlansoprazole and alogliptin for GERD (gaestroesophageal reflux disease) and diabetes respectively. Some has already been in United States markets while others still wait’s the approval. Another threat includes the consistent increase of western players in the Japanese markets.
In conclusion, the SWOT analysis of an organization is a clear indication of the progress of the company. In the 21st century, every organization focuses on attaining competitive advantage and becoming market leaders. Hence, organizations need to comprehend its weaknesses, opportunities, threats, as well as strengths. Takeda Pharmaceutical companies should maximize the opportunities that are available and utilize its strength to achieve competitive advantage. On the other had, the company need to implement strategies that will eliminate the threats and minimize weaknesses.
References
Datamonior. (2010). Takeda Pharmaceutical Company Limited. Company Profile
MacLennan, J. (2004). Brand planning for the pharmaceutical industry. Aldershot, Hants, England: Gower.
PharmaWatch (2008). Company Spotlight-Takeda. Monthly Review. Apr2008, Vol. 7 Issue 4, p32-37. 6p.
