Question

Please provide a SWOT analysis on Bayer the pharmaceuticals company.

Answer 1

Ans) Bayer pharmaceuticals company is one of the leading and largest pharmaceuticals company in the world. Bayer's areas of business include human and veterinary pharmaceuticals; consumer healthcare products; agricultural chemicals, seeds and biotechnology products.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis of Bayer is as follows-

• Strength - Bayer has strong cash flow to support new projects to expand the company. High level of customer satisfaction which represent brand equity. Bayer also investing huge funds in training and development of employees which gave the Bayer highly skilled and motivated workforce.

• Weakness - Bayer has limited success outside core business even though Bayer is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. Bayer also not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors.

• Opportunity - The new technology provides an opportunity to Bayer to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. Opening up of new markets because of government agreement, the adoption of new technology standard and government free trade agreement has provided Bayer an opportunity to enter a new emerging market.

• Threat - Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.