University of Dhaka

Assignment on

Analyzing the Strategic Relevant Factor

Of
“Eskayef Pharmaceuticals Limited”
Course Title: International Strategic Management
Course Code: EIB 516/531

Prepared for:
Dr. Chowdhury Saima Ferdous
Professor
Dept. of International Business, DU

Prepared by
SL No Name: Roll No:
1 Ridwan Bayezid 801928003
2 Nur E Makshud 801928028
3 Sajib Chandra Roy 801928036
4 Tasnim Shahriar 801929001

Submission Date: 29th October, 2020.

Department of International Business

Faculty of Business Studies
University of Dhaka
1. Our Industry:

Industry is a group of companies which understands and caters customer needs for a group of
products or services which are similar or close substitute for each other.

As we have chosen Eskayef Pharmaceuticals Ltd for our study we will be working with the
Pharmaceutical Industry.

The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical
drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate
them, or alleviate the symptoms. Pharmaceutical companies may deal in generic or brand
medications and medical devices. They are subject to a variety of laws and regulations that govern
the patenting, testing, safety, efficacy and marketing of drugs.

2. Our competitors:

Direct: Competitors which sell products of same category as Eskayef Pharmaceuticals Limited are
our direct competitors. Example: Drugs and vaccines from Square Pharmaceuticals Ltd, Beximco
Pharmaceuticals Ltd, Aristopharma Ltd.

Indirect: Competitors which sell products of same category, however not the exact substitute
rather an indirect one are our Indirect Competitors. Example: Hygiene products from Reckitt
Benckiser Detol (consumer hygiene ) or Lysol(Disinfectant spray), Consumer Health Products
from GlaxoSmithKline like Horlicks, Boost, Maltova or Oral healthcare products like Aquafresh
or Sensodyne. Infant Nutrition products from Fasska, Nestle or Formula.

Potential: A direct or indirect competitor in an industry which currently has no major market share
or distribution in our market is a potential competitor. For example, Herbal medicine, Ayurveda
or Homeopathic drugs exist in our market but are not currently a major threat to the market share
in the modern allopathic pharmaceutical industry.

3. Sector in which our company is working:

A sector is an area of the economy in which businesses share the same or a related product or
service. It can also be thought of as horizontal or vertical expansion of an industry or market that
shares common operating characteristics. Dividing an economy into different sectors allows for
more in-depth analysis of the economy as a whole.

Our company is working in the Healthcare Sector.

The healthcare sector consists of businesses that provide medical services, manufacture medical
equipment or drugs, provide medical insurance or facilitate the provision of healthcare to patients.
This may include medical hospitals, biomedical instrumentation companies, health insurance
companies etc.

4. The MACRO/ PESTEL

The PESTLE Analysis is a framework used to scan the organization’s external macro environment.
The letters stand for Political, Economic, Socio-cultural, Technological, Legal and Environmental.

Here is a brief PESTEL- Macro analysis of Pharmaceutical Industry in Bangladesh.

 Political:
 Growing political focus & pressure on Healthcare results to more regulatory
frameworks making the pharmaceutical trade more complex and increases expenses.
 Increased customs-supplementary duties, taxation and new VAT regulation in the last
few years has made it difficult to keep the cost lower in the customer end.
 Directorate General of Drug Administration has the authority to fix the MRP of any
kind of drugs which also negatively impacts profitability.
 Recent political stability has been positively affected the trade of pharmaceutical drugs.
 Department of Narcotics Control, BAPI, GMP, DGDA has created more and more
framework which resulted to a high entry barrier for new organizations.

 Economical
 Growth of spending in healthcare in every household after the pandemic has positively
affected pharmaceutical industry.
 Currency fluctuation has significant impact on pharmaceutical industry.
 Cheap labor cost lead to a increase in profit margin for this industry.
 Rate of inflation in Bangladesh is not that much of high.
 Pharmaceutical industry play a very vital role in Bangladesh’s GDP growth.
 Social
 Population in Bangladesh is continuously increasing which boost this industry.
 In urban area, people are not conscious and sufficient enough to use pharmaceutical
products.
 Growing obesity rate invites more diseases referring the need for more pharmaceutical
products
 Aging population in Bangladesh is on the growth, expected to be on the pick by next
25 years resulting the need for more pharmaceutical products
 Recent boycott on Sanofi Pharma for being a French company, might create a new
opportunity for other competitors in the industry

 Technological
 Pharmaceutical industry is full of innovative technology and its application.
 Previously there were no biotech segment in the pharmaceutical industry in
Bangladesh, but recently the existing companies are chasing each other into the
biotechnological race and working on the biotech products.
 Pharmaceutical industry was never been using its advertisements this efficiently like
now. It has been possible only because of the recent technological advancement in
advertising and marketing. In fact, their products are being sold online even without
any physical store.

 Environmental
 All the companies within this industry must follow the waste management policy of
Bangladesh.
 Growing environmental reg flags and community agendas and awareness might push
companies to be more environment friendly in future resulting to increase the
expenditure in production.
  Legal
 Drug Control Ordinance 1982, which banned foreign companies from selling imported
pharmaceutical products in the country has helped Bangladesh Pharmaceutical
organizations a upper hand.
 The relaxation of the World Trade Organization’s (WHO) agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS), which permitted Bangladesh to
reverse engineer patented generic drugs.
 All the companies within the industry must have to be enlisted in DGDA and all the
products must have a DAR no. as a sign of registered drug.
 All the companies within the industry must follow company ACT 1994.

5. Strategic Relevant Factor of Eskayef Pharmaceuticals Limited:

Name of the Organization: Eskayef Pharmaceuticals Limited

A perfect business plan is never been there, which refers to factors which are more
important to be prioritized and solved before others. Strategic Relevant Factors are
those factors that the organization or business needs to get right in order to succeed
with the key stakeholders, that is, the customers, suppliers, employees, owners and any
other organization, business unit or individual that the organization depend on for
success. In case of Eskayef Pharmaceuticals Limited, we believe the Strategic Relevant
Factor is getting better in technological aspect ensuring the success in biotech products
in Bangladesh. They are successfully operating in Bangladesh for a long time along
with its competitors like Square, Beximco, Incepta. Along with Eskayef mostly every
one of these competitors are working with generic and popular drugs with less complex
formulas and less research required. But in developed countries, pharmaceutical
industries are moving forward with more research based, biotech drugs which refers to
be the future of pharmaceutical revolution. Thus, we, our team has analyzed the
Strategic Relevant Factor as the technological advancement in biotechnology and its
research.
Reflection Account by member:
1. Information gathered be Ridwan Bayezid & Tasnim Shahriar
2. Compilation is done by Sajib Chandra Roy
3. Overall leading & monitoring has been done by Nur E Makshud

Reference:
1. http://pharmabiz.com/ArticleDetails.aspx?aid=113778&sid=21&fbclid=IwAR3wQCoJFG
5fcAxDftjgU6Xjkv9G3QMrSNrTLHXdH8lsoIkuGbfbmJoTerA
2. https://www.investopedia.com/
3. https://en.wikipedia.org/wiki/Main_Page