SWOT Analysis and Development Suggestions on HK Drugs of G Pharmaceutical Firm

Fu Yang, Tian Lijuan*

(School of Business Administration, Shenyang Pharmaceutical University, Shenyang 110016, China)

AbstractObjective To make a SWOT analysis on HK drugs, the main gynecologic biological medicament of G pharmaceutical fi rm, and to put forward some suggestions for the future promotion and sustainable development of the drugs. Methods SWOT analysis mode was used to study the strengths, weaknesses, opportunities and the threats that the HK drugs of G pharmaceutical firm are having. Results and Conclusion HK drugs of G pharmaceutical fi rm should make good use of its own advantages and external opportunities, rely on professional self-management team, and strengthen marketing promotion and brand publicity to achieve better development.

Keywords: pharmaceutical fi rm; SWOT analysis; biotechnology industry

1 Brief introduction of G pharmaceutical fi rm and its HK products

G pharmaceutical fi rm is an enterprise focusing on invention, innovation and production of highquality products and its headquarter is in Beijing.The marketing network it has built covers Beijing,Shanghai, Guangzhou, Tianjin and other large and medium-sized cities. Nowadays, HK drugs are used in about 300 tertiary hospitals. For the development of the firm, two reforms took place in 2012 and 2017 with new shareholders injecting capital. The new factory and R&D center are located in the Biomedical Industrial Park of Benxi National Hightech Development Zone in Liaoning Province. The registered capital is 196.666 million yuan. Covering an area of 45,600 square meters, the firm adopts the most advanced domestic and international production equipment and testing instruments. At present, the firm's total investment in production, research and development and marketing exceeds 500 million yuan. The firm has a number of international and domestic drug patents, focusing on the exclusive patented product-HK, which is a national hightech industry demonstration project. The emergence of HK fills the gap of immune drugs to eliminate human papillomavirus (HPV) infection, which can effectively prevent the possibility of malignant development of patients' condition and reduce the risk of cervical cancer. Because of its great curative eあect,it is welcomed by many doctors and benefits a large number of patients.

2 SWOT analysis of HK drugs of G pharmaceutical firm

The operation of an enterprise depends not only on management, but also on many internal and external factors. SWOT analysis is an effective method to analyze various internal and external factors comprehensively and objectively. It enables an enterprise to understand its own strengths,weaknesses, opportunities and threats clearly, and then it can optimize its development strategy based on this[1]. Therefore, these factors of HK drug in G pharmaceutical firm are the necessary basis for making strategic plans for its development.

2.1 Strengths

2.1.1 Strengths of the fi rm

First of all, G pharmaceutical firm focuses on the research and development of HK drug which has patented production technology and stable quality.Some technologies not only have domestic patents, but also international patents, which enable the enterprise to have greater core competitive advantages. At the same time, because the enterprise has already realized the large-scale production, it can save a lot of production costs. Therefore, the above conditions are the biggest advantages that the enterprise has when competing with other similar enterprises.

Secondly, G pharmaceutical firm is a private enterprise, which has relative flexibility in making business decisions and handling major issues. In actual market operation, the characteristics of private enterprises can be fully ref l ected, i.e. high sensitivity of market feedback, high efficiency of market decision-making and fl exibility of execution.

Furthermore, with the further restructuring of G fi rm, the enterprise will increase its market investment,providing strong financial support and guarantee for the products to enter the market.

2.1.2 Strengths of the product

As an exclusive variety, HK drug has the advantages of advanced biotechnology and patent,good curative effect, which are better than the other competitors. They are shown in the following aspects.

First, HK drug belongs to the new medicine of national Class II and it is an exclusive variety. It has the characteristics of biopharmaceuticals without adverse reactions in domestic gynecologic product,which determines its good market prospects.

Second, HK drugs have the characteristics of immunotherapy. This means that the drug can adjust the patient's own immune system so that the patient can recover without side effects. What is more, the patient will not be infected again for a long period of time.

Third, there are no effective drugs for cervical lesions caused by HPV infection clinically. So it is urgent to find such products, which provides opportunities for HK drugs to grab big market share.

2.2 Weaknesses

2.2.1 Brand awareness of the product is not high

After restructuring of the firm, HK drug was listed for sale in 2014, which has only taken 4 years.Because of the low brand awareness in the market, it cannot be fully trusted by patients. Patients prefer the products of well-known enterprises when choosing drugs.

2.2.2 Lack of professional personnel

The shortage of talents in the firm is serious,especially the shortage of professional and academic personnel with rich clinical promotion experience.Due to inadequate understanding of enterprise strategies and product curative effects, doctors and patients are not able to have a better understanding of products, which is not conducive to expanding clinical sales and developing new markets.

2.2.3 Insuきcient market share

HK drugs are products that enter the market at a later stage. Although the curative effect of other products that enter the market first could not satisfy clinicians, these products have gained a certain market share which at the same time has also generated some protection barriers. Thus they raise the threshold for HK drugs to enter the market. This means that this drug is in a bad position to seize the market in the competition.

2.3 Opportunities

2.3.1 National policy support for biotechnology

Biotechnology industry is a new strategic industry in China. Promoting its development can bring benefits and profits to the society. This is of great signif i cance for adjusting the industrial structure and changing the mode of economic development[2].In order to encourage the development of domestic biopharmaceutical enterprises, the State has issued a series of supporting policies. The Thirteenth Five-Year Plan clearly pointed out that it was necessary to further consolidate the innovation foundation of bio-industry and promote modern bio-technology to benefit people's livelihood. Efforts will be made to create new momentum of bio-economy and promote the international development of the entire industry.Biopharmaceuticals have the fastest development, the strongest vitality and the highest technical content in the pharmaceutical industry. Therefore, the State includes biotechnology in high-tech industries,attaches great importance to its development, and provides preferential policies on taxation[3].

HK is a non-specific immune drug and it is a national second-class biological product under the background of biotechnology and scientific research investment. It has obtained many domestic invention patents. Its advanced biotechnology and production technology has enabled this product to obtain exuberant vitality and good market returns.

2.3.2 The increasing market demand

In recent years, women's reproductive health has attracted social attention. At present, the incidence rate of gynecological diseases is increasing year by year[4].Cervicitis is a common female reproductive tract disease with high incidence rate. At the same time,the infection and cure of HPV is a hot issue today.Persistent infection of HPV is a factor for cervical cancer. Understanding HPV infection and taking targeted intervention are extremely important to reduce the occurrence of cervical cancer[5]. These factors determine the huge market potential of HK drugs.HK drugs are biopharmaceutical products, which can be used in conjunction with surgery or drug therapy alone, thus greatly improving clinical participation.In addition, the advanced infection detection methods also make the clinical eあects of HK drugs oblivious.After using the product in the treatment, the patient can get the test report of recovery. For the patients in recovery period, the pathological report can also provide the corresponding remission certificate. The exclusive and irreplaceable position of HK drugs in the treatment fi eld provides the greatest guarantee for the products to win the market eventually.

2.3.3 Lack of clinical therapeutic drugs

Women's cervical diseases have gradually received social attention, which means that such drugs have a huge market share. However, although there are a large number of drugs with disinfection product number poured into this fi eld, basically they have no actual clinical curative effects that can be recognized by doctors. Therefore, this provides many opportunities for HK drugs.

2.4 Threats

2.4.1 Threats from direct competitors

HK drugs of G pharmaceutical firm entered the market quite late, and it means market for such products has been completely divided up, such as Baofukangshuan, interferon and other products.Therefore, once HK drugs entered the market, they were in an unfavorable position. Limited by the market input, resources can only be put into key markets in a planned way, which has a certain impact on the entry of products in the market. HK products should not only do their own clinical and academic promotion work well, but also face obstacles and suppression from its direct competitors.

2.4.2 Threats from potential competitors

With the continuous progress of science and technology, medical technology is also developing fast. At present, gene therapy and stem cell therapy methods are improving and have been applied in clinical practice. The upgrading of clinical treatment methods will inevitably bring about changes in the concept of

clinical medication. G pharmaceutical fi rm must pay close attention to the clinical development trends according to its actual situation and adjust its strategy in time so as to make itself in a favorable position in the competition.

3 Development proposals

3.1 The promotion and brand publicity of this product should be strengthened

Besides face-to-face visits and academic promotion, product promotion also includes public relations. Doctors can form the concept of this product,which means they can highlight the characteristics of this product and realize that HK drug is a rare good product. At the same time, it can also carry out a series of public welfare activities, such as free clinic or drug subsidies for patients with fi nancial diきculties, which can promote the products and improve corporate recognition to some extent.

3.2 Setting up a professional sales team

With the gradual adjustment of various national medical policies, first-line clinical therapeutic drugs with definite therapeutic effects will become the mainstream of the market. At the same time,pharmaceutical sales representative, who can accurately transmit product information, is the frontline talent that is really needed in the future. Only production enterprises can cultivate such talents in a systematic and professional manner. They can accurately instill the market intention of enterprises and realize the benign development of products in the market.

3.3 Establishing a professional academic team

The best clinical drugs with def i nite therapeutic eあects will become popular in the market, but to prove the products that belong to this category will also be an important task. This can determine the access difficulty of products and the core competitiveness of subsequent development. Professional selfmanagement sales teams can provide accurate information for enterprises. In addition, professional academic teams can provide better professional support for frontline clinics through effective processing and analysis of such information. At the same time, they can also carry out corresponding clinical research and cooperation projects, thus providing the possibility for HK drugs to enter the medication guide and clinical pathway. Besides, it also provides continuous support for product upgrading and expansion.

To sum up, the competition in the pharmaceutical industry is increasingly fierce, but it is also full of opportunities. HK drug is a new application of advanced bioengineering technology and has a broad market prospect. It should make good use of its own advantages and grasp the external opportunities while overcoming the disadvantages. Facing with the pressure and adjusting the product development strategy, it can gain market share and will be accepted by doctors and patients in the future.