SWOT Analysis of Perrigo Company

SWOT analysis is one of the most important strategic tools to evaluate the internal (Strengths and Weaknesses) of the company and external environment (Opportunities and Threats) of the industry. Main objective of SWOT analysis is to explain the conclusion of the firm’s environment into actions to improve the position and strategies of the company as needed.

Internal Strengths: The Features which are helpful to achieve objective(s) of a company.

Internal Weaknesses: Deficiencies which are harmful for company and its objectives and puts it into a disadvantage in market place.  

External Opportunities: Factors that helps to shape a company’s strategy.

External Threats: Factors that creates threat for company’s profitability and competitive position.    

It is not just enough to identify the company’s strengths, weaknesses, opportunities, and threats. It is also important to transform them into strategic options to better match the firm’s strategy to market opportunities and its strengths, to improve the significant weaknesses, and to protect against external threats.  

There are three steps of SWOT analysis; first step is to identify all the weaknesses, strengths, opportunities, and threats. Second step is to draw conclusion such as attractive to unattractive aspects of the firm’s position and weak to strong attractiveness of the firm’s position. Third step is to translate all these aspects into strategic options. For the practical aspects of SWOT analysis see the example of Perrigo Company below:  

 

Internal Strength

 

  1. Identifiable corporate name with a good reputation
  2. Big manufacturer store brand OTC, and personal care products
  3. Low cost due to economies of scale
  4. Strong sales and service network
  5. Experience manufacturing and management
  6. Established retailer network with good retailer and supplier relation
  7. Huge and efficient production facilities with (JIT/TQC, MRP II), vertically integrated etc. 

 

Internal Weaknesses

 

  1. Little promotion and advertisement
  2. Narrow product line other than OTC and personal care
  3. Losing market share
  4. Weak brand image other than OTC and Personal care products

 

External Opportunities

 

  1. Explosive growth with good packaging, high quality, promotion, and commitment with retailers
  2. Decline in brand loyalty
  3. Shift in consumer attitudes towards private labels
  4. Internationalization of retailing 

 

External Threats

 

  1. Competitively priced of other store brands products 
  2. Nature of pharmaceutical market – stagnant, tends to have fixed clients
  3. Decline in brand loyalty
  4. Costly new patents

To see the TOWS Analysis of Perrigo Company  Click Here

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