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Business Analysis Farmexim
Business Analysis Farmexim
Business Analysis Farmexim
Introduction............................................................................................................ 2
Chpter I: Compny presenttion.........................................................................3
1.1.
Business Profile.......................................................................................... 3
1.1.1.
Legl orgniztion:.............................................................................. 3
1.1.2.
Compny ledership:...........................................................................3
1.1.3.
Compnys purpose............................................................................. 3
1.1.4.
Short history........................................................................................ 3
1.1.5.
Products Distribution..........................................................................4
1.2.
Introduction
Business Profile
2
Legl orgniztion:
Compny ledership:
Compnys purpose
Short history
Products Distribution
Buchrest;
Gli;
Constn
Cluj;
4
1.2.
Orde;
Criov;
Timisor;
Ploiesti;
Ii;
Sibiu;
Brov;
Bcu;
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
2011
2012
2013
Mediplus
Farmexim
Ropharma
Romastru Trading
Pharmafarm
ADM. Farm
Polisano
Pharma Romania
Frmexim
The mrket shre held by Frmexim in 2013 ws 11%. The elsticity of this
mrket shre (computed over the pst 3 yers) is less thn 1. Frmexims mrket
shre is bout the third prt of the mrket shre computed for Mediplus in 2013.
The overll mrket growth for lst three yers ws 3% for Frmexim, the
nnul growth rte ws 1,5%.
c. Mrket dynmics
The fctors which hve ffected the compny in the long term hve vried in
time, initilly when the mrket ws much smller the principle fctors which ffected
the mrket theyre intrinsic to the compny (qulity, distribution, cost, post-sle
7
Sles
Buharest
Ilfov
Prahova
Constana
Others
Quntittive fctors;
Behviorl fctors;
Mercntile fctors.
Quntittive fctors the elsticity of demnd s comprison to the price
nlyzing the price nd its reltionship with demnd they cn conclude
tht demnd is inelstic, which mens tht ny rise or fll in the price will not
influence in the sme degree the demnd. they cn observe this in reltion with the
competitors, which lthough they hve higher prices thn Frmexim, their mrket
shre is lmost double.
Behviorl fctors in the B2B mrket the customers preferences mintin
constnt.
Mercntile fctors very importnt mercntile fctor in the B2B segment is
the experience of the customer which usully does not chnge its supplier becuse
medecines re non-discretionry products.
ii. Determining fctors of demnd in the short term
The principl fctors of evolution re clssified s following:
Consumption sesonlity;
Economic sitution.
Quntittive fctors;
Behviorl fctors;
Mercntile fctors.
Quntittive fctors the elsticity of demnd s comprison to the price is
t the sme level s in the B2B segment. they cn mention tht in the B2C is very
good prospect to increse the number of customers which cn be certinly trnslted
into n incresing on demnd for Frmexims products.
Behviorl fctors very importnt fctor is the preferences of consumers,
which re very hrd to define, becuse this mrket is composed by lot of
substitution products, like herbl or homeopthic medecines.
Mercntile fctors s they sw into B2B segment, the experience of the
customers is very importnt in the decision mking process of the cquisition
becuse of the nture of the compnys products. n importnt difference in this re
is the importnce of mrketing policy hs on demnd.
ii. Determining fctors of demnd in the short term
Similrly with B2B segment, the demnd sesonlity nd economic
re the most importnt fctors to be tken into considertion, however for
segment the most importnt mcroeconomic indictor is not GDP
employment rte.
c)
Supply nlysis for the B2B nd B2C
Given the fct tht compny offers round the sme products
segments they will hve only one pproch in supply nlysis.
sitution
the B2C
but the
for both
10
Net mrgin;
2010
2011
2012
2013
Net mrgin
7.54%
6.21%
5%
8.22%
Indictor
2010
Return on ssets
9.77%
Indictor
2010
Return on equity
13.22%
2011
2012
8.25% 6.66%
2011
10.47%
2012
8.45%
2013
10.63%
2013
14.44%
Decresing of unemployment
rte in the long term.
2)
Sles growth in B2B GDP growth of Romni;
segment
The
development
of
complementry products;
Price increses;
Fcilitting
commercil
conditions.
3)
Thret
s
Profit growth
weknesses
1. Incresing
competition
2)
Decresing in New competitors
mrket shre
Decresing in sles;
Disstisfction of the customers.
3) Incresing in cost;
Mrket growth;
The level of fixed costs in B2C is similr to the level of fixed costs in B2B.
2.2.2. Competitive dvntge
From our previous nlysis they hve observed certin strong points nd wek
points of Frmexim, which they will present forwrds. We cn remrk tht the
compny is in chllenger position in the B2B segment nd it holds good prt of
the mrket. The cler leder is Mediplus, with mrket shre over 30%. Most sles
were mde in Buchrest, pproximtely 50%, nd the rest is divided by the
provinces.
The compny lso sells for the B2C segment but momentrily it genertes
only 10% of the overll sles. Nevertheless this is the segment which is expected to
provide most of the future growth. lthough, this segment hs been very little
exploited by Frmexim, but it hs its big competitors: Cten, Don, Sensiblu,
Belldon, Tei, Punkt nd other individul phrmcies which function in the retil
sles mrket of drugs.
14
From the nlysis mde in the previous chpters they re ble to propose
series of mesures in order to improve the strtegic position of Frmexim. With ech
suggestion, they propose to quntify the effort needed to implement the mesures
nd chieve the desire effect. lso, they will compute the efficiency of ech inititive
clculted s the rtio between expenses required to implement the mesure nd the
benefit expected to be chieved.
15
Yer
201
5
201
6
Promoting method
Plnned
expenses
Plnned
revenues
Efficiency
TV commercils
4,000,000
5,000,000
1.25
dvertising spots
2,000,000
3,100,000
1.55
9,000,000
10,000,000
1.11
Coupons
300,000
450,000
1.50
TV commercils
1,500,000
1,800,000
1.20
dvertising spots
3,000,000
4,000,000
1.33
Bnners
300,000
400,000
1.33
Sponsorships
1,000,000
1,250,000
1.25
dvertising Spots
2,000,000
3,000,000
1.50
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2017
Coupons
200,000
250,000
1.25
Sponsorships
900,000
1,000,000
1.11
Bnners
300,000
420,000
1.40
Grnd Totl:
24,500,000
30,670,000
1.25
This inititive hs the role to increse the profitbility of the compny nd lso
to consolidte the vlue of overll sles. This mesure is fundmentl shift in the
strtegy of Frmexim which in the pst hs hd policy of hving lower prices thn
its min competitors, Frmexpert nd Europhrm. Hving lower prices could be
consider mistke becuse neither of them does not hve cost dvntge. Even if
the demnd is elstic on this mrket, n increse of prices will be benefic for
Frmexpert.
In the B2B segment lthough compnys prices were third lower thn the
competitors, its mrket shre hs fllen by 2%. Thus by implementing this new price
policy which it will only be considered for the B2B, within limit of 15%, the compny
will hve the chnce to increse its profitbility nd sles. By implementing this
inititive they forecst tht the sles will grow with 10% nd the net mrgin will rech
8.7%.
Through to this mesure they look to increse the type of products sold from
HelpNet portfolio. The benefit of this mesure will reside in the fct tht lrger offer
of dispensers with heterogenic qulities will increse the interest of potentil
customers nd indirectly the volume of sles nd turnover.
The HelpNet phrmcies re designed in wy tht on the shelves re not
exposed mny products. chnge in the structure of the spce in ech phrmcy
will chnge the disply of the products, mking ech medicine more esier to be
seen.
Lets tke the exmple of Cten phrmcies. Ech phrmcy hs lot of
spce, nd shelves on ll wlls. lso, the products re presented on the shelves,
creting the impression of diversity nd ttrcting customers.
Frmexim should chnge the structure of the HelpNet phrmcies, in order to
be ble to disply more products. This will increse the number of customers nd in
time the sles.
This chnge lso needs investments to be mde. The proposed investment
will be estimted t 1,700.000 EUR, tking into ccount tht HelpNet hs 170 open
phrmcies nd there should be bought proximtely nother 4 shelves, ech vlue
of 2,500 EUR.
17
Plnned expenses
2015
1,000,000
2016
500,000
2017
200,000
Totl:
1,700,000
Plnned revenues
Efficiency
1,500,000
1.5
700,000
1.4
400,000
2,600,000
1.6
Plnned expenses
2015
13,000,000
10,300,000
0.8
2016
2,000,000
4,000,000
2017
1,000,000
3,000,000
Grnd
totl:
16,000,000
17,300,000
1.08
18
prtnership with privte clinic would be benefic for Frmexim, since it will
open new opportunities.
Medlife hs creted lso reputtion into the medicl field, by offering
professionl services nd by extending their ctivity from Buchrest (where they
hve lredy 6 clinics) to Isi, Constnt, Brsov, Glti, Isi, Timisor nd rd,
covering in this wy the key res of the country.
Frmexim lredy distributes medicines to public hospitls. n greement with
Medlife will ofer to Frmexim stble client, nd the dvntge of covering in this
wy clinics in the min cities, where Frmexim lredy hs working points opened.
This prtnership could increse in time the mrket shre of Frmexim. lso, in
time, could conclude prtnerships with other privte clinics.
19
Conclusions
20
For the fifth inititive, we hve presumed tht Frmexim should conclude n
greement with privte clinics, nd we gve s exmple Medlife, clinics, which re
expnded ll over the country.
The lst inititive, which is linked indirectly with the expnsion in the foreign
mrket, is listing on stock exchnge mrket, fter nlysing tht the compny hs
met ll the criteri.
Bibliogrphy
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