Introduction to the industry

The pharmaceutical industry in India was valued at an estimated US$42 billion in 2021. India
is the world's largest provider of generic medicines by volume, with a 20% share of total
global pharmaceutical exports. It is also the largest vaccine supplier in the world by volume,
accounting for more than 50% of all vaccines manufactured in the world. With industry
standards compliant mega production capabilities and large number of skilled domestic
workforce, Indian exports meet the standards and requirements of highly regulated markets of
USA, UK, European Union and Canada. According to the Department of Pharmaceuticals,
Ministry of Chemicals and Fertilizers, domestic pharmaceutical market turnover reached Rs
129,015 crore (US$18.12 billion) in 2018, growing 9.4 per cent year-on-year and exports
revenue was US$17.28 billion in FY18 and US$19.14 billion in FY19.

Introduction to Sun pharma

Sun Pharmaceuticals is the largest pharmaceutical company from India and the fifth largest
specialty generic company in the world. It has capabilities across dosage forms like
injectables, sprays, ointments, creams, liquids, tablets, and capsules. Its businesses include
producing generics, branded generics, speciality, over the counter (OTC) products, anti-
retrovirals (ARVs), active pharmaceutical ingredients (APIs) and intermediates in the full
range of dosage forms. It also produces specialty APIs. In FY19, US formulations contributed
the most to company’s sales with 37%, followed by India branded formulations at 26%.

As of 2021, most of the pharmaceuticals made in India are low cost generic drug which
comprise most of pharmaceutical export of India. Patented medicines are imported. APIs are
imported from China (60% supplies by volume worth US$2.4 billion) and Germany (US$1.6
billion) as well as from US, Italy and Singapore.[1] To foster an Atmanirbhar Bharat by
enhancing the R&D, Make in India product development and high-value production
capabilities, import substitution and domestic manufacture of active pharmaceutical
ingredient (API) the government has introduced a US$2 billion incentive program which will
run from 2021–22 to 2027–28. In 2019 the Department of Pharmaceuticals announced that as
part of the Make in India initiative, drugs for local use and exports must have 75% and 10%
local APIs respectively and a bill of material must be produced for verification. During 2018–
2021, India ranked third globally in terms of dollar value of drugs and medicines exports.
Major pharmaceutical hubs in India are (clockwise from northwest): Vadodara, Ahmedabad,
Ankleshwar, Vapi, Baddi, Sikkim, Kolkata, Visakhapatnam, Hyderabad, Bangalore, Chennai,
Navi Mumbai, Mumbai, Pune and Aurangabad.

Sun Pharmaceuticals

India is among the top 10 pharmaceutical exporting countries with its share of the global
market on the rise compared to the previous 5 years.

In September 2021, with the launch of Revital NXT, Sun Pharma Consumer Healthcare, a
division of Sun Pharmaceutical Industries Ltd., announced its entry into the nutrition bar
category in India. Revital NXT, is a brand extension of Revital H, a health supplement.

In June 2021, Sun Pharmaceuticals acquired the patent license for Dapagliflozin from
AstraZeneca. The company will distribute and promote the drug under the brand name
‘Oxra’.

In May 2021, the company entered a royalty-free, non-exclusive licensing agreement with Eli
Lilly and Company to expand access to the COVID-19 drug, Baricitinib. The company will
manufacture and distribute the drug in India.

Porters Five forces Model

Today's business environment is extremely competitive and in economics parlance where

perfect competition exists, the profits of the firms operating in that industry will become zero.

However, this is not possible because, firstly no company is a price taker (i.e. no company
will operate where profits are zero).

Secondly, they strive to create a competitive advantage to thrive in the competitive scenario.
Michael Porter, considered to be one of the foremost gurus' of management, developed the
famous five-force model, which influences an industry.

In this article, we apply this model for the Indian pharma industry.
Industry Competition

Pharma industry is one of the most competitive industries in the country with as many as
10,000 different players fighting for the same pie. The rivalry in the industry can be gauged
from the fact that the top player in the country has only 6% market share, and the top five
players together have about 18% market share.

Thus, the concentration ratio for this industry is very low. High growth prospects make it
attractive for new players to enter in the industry.

Another major factor that adds to the industry rivalry is the fact that the entry barriers to
pharma industry are very low. The fixed cost requirement is low but the need for working
capital is high.
The fixed asset turnover, which is one of the gauges of fixed cost requirements, tells us that
in bigger companies this ratio is in the range of 3.5 to 4 times. For smaller companies, it
would be even higher.

Many smaller players that are focused on a particular region, have a better hang of the
distribution channel, making it easier to succeed, albeit in a limited way.

An important fact is that pharma is a stable market and its growth rate generally tracks the
economic growth of the country with some multiple (1.2 times average in India). Though
volume growth has been consistent over a period of time, value growth has not followed in
tandem.

The product differentiation is one key factor, which gives competitive advantage to the firms
in any industry. However, in pharma industry product differentiation is not possible since
India has followed process patents till date, with laws favouring imitators.

Consequently, product differentiation is not the driver, cost competitiveness is. However,
companies like Pfizer and Glaxo have created big brands in over the years, which act as
product differentiation tools. This will enhance over the long term, as product patents come
into play from 2005.

Bargaining power of buyers

The unique feature of pharma industry is that the end user of the product is different from the
influencer (read doctor). The consumer has no choice but to buy what doctor says. However,
when we look at the buyer's power, we look at the influence they have on the prices of the
product.

In pharma industry, the buyers are scattered and they as such does not wield much power in
the pricing of the products. However, government with its policies, plays an important role in
regulating pricing through the NPPA (National Pharmaceutical Pricing Authority).

Bargaining power of suppliers

The pharma industry depends upon several organic chemicals. The chemical industry is again
very competitive and fragmented. The chemicals used in the pharma industry are largely a
commodity.
The suppliers have very low bargaining power and the companies in the pharma industry can
switch from their suppliers without incurring a very high cost.

However, what can happen is that the supplier can go for forward integration to become a
pharma company. Companies like Orchid Chemicals and Sashun Chemicals were basically
chemical companies, who turned themselves into pharmaceutical companies.

Barriers to entry
Pharma industry is one of the most easily accessible industries for an entrepreneur in India.
The capital requirement for the industry is very low, creating a regional distribution network
is easy, since the point of sales is restricted in this industry in India.

However, creating brand awareness and franchisee amongst doctors is the key for long-term
survival. Also, quality regulations by the government may put some hindrance for
establishing new manufacturing operations.

Going forward, the impending new patent regime will raise the barriers to entry. But it is
unlikely to discourage new entrants, as market for generics will be as huge.

Threat of substitutes
This is one of the great advantages of the pharma industry. Whatever happens, demand for
pharma products continues and the industry thrives. One of the key reasons for high
competitiveness in the industry is that as an on going concern, pharma industry seems to have
an infinite future.

However, in recent times, the advances made in the field of biotechnology, can prove to be a
threat to the synthetic pharma industry.

Pestel Analysis

The PESTEL analysis pharmaceutical industry can give companies an idea about the external
factors which can have a temporary or lasting impact on the pharmaceutical industry. The
given list shows the effect of the external factors:

Political Factors:

For any business to flourish, it is essential to have a stable political condition. Here are some
political conditions which can impact the pharmaceutical industry :
  Most countries maintain frameworks that include guidelines about safety standards,
certifications, etcetera. They also mark the banned drugs, which may cause health
hazards. If a pharmaceutical company fails to follow those regulations, its business
may suffer severely.
 Administrations of most countries try to gain control over the price of the drug to
make it affordable for people. It may toll on the growth of pharmaceutical companies.
 Governments of some countries subsidize the pharmaceutical companies to keep the
essential drugs within the commoners' reach. It helps the companies to survive in the
competitive market.

Economic Factors:

The economy of any direct impacts the businesses. The pharmaceutical industry is also
affected when the economic conditions of a country get affected. The PESTEL analysis
pharmaceutical industry can identify the economic conditions which can affect the
pharmaceutical companies :

 As the economic conditions of the countries are developing with time, the household
income of people is also increasing. It may allow them some essential drugs. They
may have the urge to buy costlier drugs, which were previously out of reach for many
people.
 The researchers are constantly working on drug modification, resulting in more
beneficial and potential drug production. As people are buying those drugs, the
pharmaceutical industry is also flourishing.
 The average healthcare spending of the families is increasing. If there are aged people
in a family, there are more chances of high healthcare expenses. It also includes the
cost of medicines. It is also giving the pharmaceutical companies to earn better profit
even after following Government guidelines about pricing.

Social Factors:

Socio-cultural factors of any country can impact the industries within the periphery of the
country. The pharmaceutical industry is not an exception, and the sociological conditions
dominate it gravely. Here are some sociological conditions which can impact the growth of
the pharmaceutical industry:
  The lifestyle of people has people incredibly fast yet stagnant. As a result, more
people are moving towards obesity. Thus, facing health conditions like diabetes,
thyroid, hypertension. The patients need continuous medication to deal with this.
Hence the sales of the pharmaceutical companies are also increasing.
 As the healthcare system has improved all over the country, the number of the aging
population is also growing. Hence, there is a need for more medicines for them than
for the younger ones. It creates a greater demand in pharmaceutical companies
resulting in their expansion.
 Many people are concentrating on having a healthy lifestyle while doing exercises,
eating healthy. It may result in a decrease in the demand for drugs in the future.

Technological Factors:

The pharmaceutical industry is greatly dependent on technological innovations. The PESTEL

analysis pharmaceutical industry can show how the technical conditions can affect the
business :

 The pharmaceutical industry is greatly dependent on technology. The research and

biotechnological innovations have resulted in the production of drugs that are good in
quality and have low production costs. It will allow more people to get access to
medicines that they previously could not afford.
 The drugs require proper storage conditions. Technology has made it easier to
preserve medicines and transport them without getting harmed due to unpleasant
conditions.
 Technology has provided pharmaceutical companies with the chance to reach more
companies through campaigns. They can also deliver the medicine at the door, which
has increased the reach of the companies. It can also increase the revenue of
pharmaceutical companies.

Environmental Factors:

Environment is a significant concern, and the impact of waste materials on the environment
has worried the environmentalists. Here are some ecological issues which may affect the
pharmaceutical industry:
  As the production of drugs is related to a large carbon footprint, many countries are
coming up with regulations to decrease the effect on the environment. As abiding by
these regulations may be costly for the new companies, they may fail to establish their
business.
 The production of drugs results in the creation of different biotechnological
pollutants. They may be hazardous for people's health. The company needs to take
care of this waste to maintain the safety of the people.
 Like other companies, pharmaceutical companies may take up some corporate
responsibilities towards the environment. They can donate money or campaign for
some environmental causes, which can help them create a better image.

Legal Factors:

A nation's legal conditions do not have much direct impact on the pharmaceutical industry.
However, there can be some indirect issues that may affect the growth of the pharmaceutical
business. The PESTEL analysis pharmaceutical industry can help to point out the legal
aspects which can work on the growth of the pharmaceutical industry :

 As pharmaceutical products are one of the essential ones, the government always uses
laws to control the fraud regarding the expiration dates and manufacturing of the
batch of drugs. If a company fails to adhere to the set guidelines, it may have to face
legal proceedings.
 Pharmaceutical companies are mainly dependent on their database. If they get
affected by cyber threats, the customer may lose their confidence in them. It can affect
their business as well.
 Pharmaceutical companies should maintain strict legal guidelines while formulating
the framework for their business and researches. They ensure the safety of the
products. It helps them to avoid legal issues. Thus, allowing them to stay away from
the high expenses of proceedings.
Porters Diamond Model

Michael Porter’s Diamond Model, which is also popularly known as the Theory of National
Competitive Advantage of Industries is a strategic tool used by companies for determining
and developing the basis of competitive advantage needed for international growth and
expansion. The strategic model is shaped like a diamond and comprises of elements within a
framework that determine the case on international competitiveness for a firm within any
given industry. The elements within the framework are interconnected, and also interactive,
and include Firm Strategy, Structure and Rivalry; Factor Conditions; Demand Conditions;
and Related and Supporting Industries. 
For Investing in the Indian Pharmaceutical Industry, these conditions and elements have been
particularly favorable in helping the firm boost its growth internationally with continuous
innovation and up-gradation. As a result, by focusing on these elements and their refinement,
Investing in the Indian Pharmaceutical Industry has been able to become one of the eluding
beverage brands across the globe in different countries. 

2. Factor conditions
Factor conditions are elements and aspects that provide a competitive advantage to the
industry and its firms. However, unlike natural resources, factor conditions are usually
developed by the country at large. For Investing in the Indian Pharmaceutical Industry, the
factor conditions include the following:

2.1. Natural resources

These are the natural resources available to Investing in the Indian Pharmaceutical Industry in
its home country, as well as in the countries where it has set up operational and production
plants. These include, for example, the presence of natural resources such as water channels.
These natural resources are available to a firm because of its location and are relatively
cheaper for the firm to access. They do not need to be developed or created but refined for
usage generally. 
2.2. Capital resources
These include the financial resources that are available to Investing in the Indian
Pharmaceutical Industry. For Investing in the Indian Pharmaceutical Industry, these are
available through equity capital resources and debt financial resources. Equity-based capital
is largely generated within the company, using internal resources and channels only. Debt-
based capital, on the other hand, involves debt taking from external sources and
organizations.

2.3. Human resources

This includes the skill levels, and performance of the human resources at the Investing in the
Indian Pharmaceutical Industry. It also involves the training programs and all other
investment programs undertaken by Investing in the Indian Pharmaceutical Industry in
relation to its human resources and employees across the globe. It also includes all human
resource functions from recruitment to performance management which work towards
employee development and growth.

2.4. Scientific knowledge

This involves the scientific and technical knowledge available to a firm and its knowledge
base. This may be acquired through countrywide resources, industry-wide resource, or
resources specific toe firm. Scientific knowledge is important for a firm in developing a
competitive advantage that helps it stand out from its competing players. 

2.5. Technological innovation 

The presence of scientific knowledge will also lead to frequent innovations – technologically
s well as otherwise. Technological innovations are important in helping firms achieve
economies of scale and reduce overhead costs and other operational costs to be able to
expand into other markets with profit maximizations. 

2.6. Infrastructure
The infrastructure is also an important factor condition for Investing in the Indian
Pharmaceutical Industry which has helped it grow and expand- not only locally but also
globally. The infrastructure includes the physical as well as the technological network that
has allowed Investing in the Indian Pharmaceutical Industry to successfully complete and
carry out operations in other countries and markets. 
This infrastructure is largely developed by the country itself based on internal resources.
However, in cases of firm need and market potential, firms such as Investing in the Indian
Pharmaceutical Industry have also engaged in developing the local infrastructure – which has
not only helped the firm in the development but has also led to the growth and development
of the society and market where it has expanded to. 

3. Related and supporting industries

The presence of supporting and competing players in the industry provide positive pressure
and encourage mantra to players in the industry towards excelling and expanding through
innovation and internationalization. For Investing in the Indian Pharmaceutical Industry, the
supporting and related industries have also been particularly helpful in leading the brand into
achieving new heights with every passing year.

3.1. Presence of related industries

The presence of related industries in domestic and international markets has also been a
source of growth and development in terms of expansion and internationalization for
Investing in the Indian Pharmaceutical Industry. This is because related industries have
helped Investing in the Indian Pharmaceutical Industry in the business operations by
providing support materials needed for successful operational excellence. Investing in the
Indian Pharmaceutical Industry, for example, has been able to source packaging materials,
and raw materials locally in different consumer markets, which have helped it control costs
and expenses, and achieve economies of scale.

3.2. Presence of supporting industries

The presence of supporting industries is a facilitator for Investing in the Indian
Pharmaceutical Industry in growing and expanding its business. This is true for the presence
of supporting industries in domestic as well as international markets. In domestic markets,
supporting industries have helped the development of the overall industry, which in turn has
also allowed firms like Investing in the Indian Pharmaceutical Industry in progressing and
developing in business operations and attracting consumers and creating awareness in
customer markets for product awareness and recognition. 

3.3. Presence of rival industries

The presence of rival industries is also an important factor for the growth and development of
business operations and growth for Investing in the Indian Pharmaceutical Industry
internationally. This is because rival industries have pressured the firm’s own industry into
developing, and advancing to be able to perform better and maintain its share of the consumer
pie in the market. In pressuring Investing in the Indian Pharmaceutical Industry’s industry
and related firms towards excelling and efficiency, rival firms also pave the path for growth.
This is either done by pressuring the firm’s industry to explore new markets, or by expanding
first and allowing the firm’s industry to copy the expansion prices. For Investing in the Indian
Pharmaceutical Industry, rival industries have pressured the company to not only perform
better but explore new markets for increasing revenue streams.

3.4. Presence of strong global suppliers

The presence of strong global suppliers is one of the most important and basic sources of
developing competitive advantage for international markets, and for ensuring product
availability across different consumer markets. Investing in the Indian Pharmaceutical
Industry has a strong network of global suppliers which help it distribute its products to
different consumer markets, and make them easily visible and accessible for consumers.
These global suppliers are selected against defined criteria and benchmarks to ensure quality
consistency and effective processes throughout the markets. 

4. Strategy, structure, and rivalry

This refers to the company’s strategic focus and its managerial and organizational structure
and architecture. The organizational leadership and set up is important for determining the
international expansion of the company and firm. For Investing in the Indian Pharmaceutical
Industry the organizational structure, and set up as well as the strategic vision and decisions
have been important in facilitating the company’s international growth and expansion.

4.1. Company strategy

Investing in the Indian Pharmaceutical Industry’s strategy is to focus on customers to provide
them with high-quality products that offer continually consistent quality and taste in the
offering. Investing in the Indian Pharmaceutical Industry promises value for money and
satisfaction to customers and designs its strategic focus and decisions in the same manner – to
allow maximization of value for money to customers through efficient processes that also
lead to cost-saving for the company.
4.2. Structure of the organizations
Investing in the Indian Pharmaceutical Industry is a flatter organization that supports open
and free communication. The company offers easy and quick access to managers and
supervisors, and thus allows a creative and trusting organizational culture that helps in the
growth and progress of the company. Moreover, the flatter organization also allows
employees at Investing in the Indian Pharmaceutical Industry to easily approach and discuss
matters with the leadership at Investing in the Indian Pharmaceutical Industry.

4.3. Managerial system

The managerial system at Investing in the Indian Pharmaceutical Industry is supportive that
works towards employee growth and development. Supervisors and managers work
continually with employees to help them develop personally and professionally. Investing in
the Indian Pharmaceutical Industry has designed a number of different training programs for
the same purpose, and employees have suggested these programs based on their skill gaps,
and performance levels. 

4.4. Intense competition between local rivals

Competition with local rivals influences its strategic development and focus. The company is
often pressured into creatively exploring novice ways and technology to incorporate these
into its routine operations. In this way, intense competition with local and domestic players
has allowed Investing in the Indian Pharmaceutical Industry to introduce novice processes
and technologies to develop unique competitive and cost advantages for Investing in the
Indian Pharmaceutical Industry to help it attract a greater number of consumers. 

4.5. Competition with global players

With global competition, Investing in the Indian Pharmaceutical Industry has gained an
understanding of different regional and international business practices and cultures which
have helped it develop more intricate, and region-specific products and offerings. The global
competition has also allowed Investing in the Indian Pharmaceutical Industry to predict
global trends and consumer behavior patterns which in turn have allowed the firm to maintain
a competitive advantage internationally. 

5. Government
This refers to how governments can influence firm performance and its growth plan through
its various policies as well as border relations with other countries one global front. For
Investing in the Indian Pharmaceutical Industry, government policies and structures across
different countries have been particularly favorable. 

5.1. Government policies

Government policies have supported Investing in the Indian Pharmaceutical Industry in its
expansion and growth plans and opportunities. Investing in the Indian Pharmaceutical
Industry has received support from its home country for expanding production capacities, and
also from foreign governments in setting up plants and gaining access to import and export
quotas for different regions. Moreover, the government trade policies between different
countries have also benefited Investing in the Indian Pharmaceutical Industry in expanding its
business internationally.

5.2. Industry regulations

The industry regulations for Investing in the Indian Pharmaceutical Industry have also been
supportive of the firm in maintaining and developing its competitive advantage towards
sustainability. Industry regulations for Investing in the Indian Pharmaceutical Industry also
ensure the consistent maintenance of quality in Investing in the Indian Pharmaceutical
Industry products. Moreover, industry regulations have also allowed Investing in the Indian
Pharmaceutical Industry to develop efficiency in its products through technological
advancement, and the development of scientific and technological knowledge for supporting
business advancement. 

5.3. Government as a catalysts

The government has acted as a catalyst for Investing in the Indian Pharmaceutical Industry on
a number of occasions. By being a catalyst, the government has supported Investing in the
Indian Pharmaceutical Industry’s business operations and developmental plans. This has been
done by providing the company with infrastructural capacities and benefits for example. The
government has also been a catalyst in facilitating the business meet its demand, and with its
various internal consume related policies and regulations which have allowed Investing in the
Indian Pharmaceutical Industry to design marketing programs and develop products that meet
the needs of consumers locally as well as in other markets. 

5.4. Government as a challenger

The government has also been a challenger for Investing in the Indian Pharmaceutical
Industry. This has also helped the business in its growth strategy. The government has been a
challenger especially in its relation with other countries which in turn have had an impact on
the business relations that Investing in the Indian Pharmaceutical Industry has with foreign
consumers and markets, as well as foreign agents and distributors. However, these challenges
that have sprouted from the governments and its relations with other countries and regions,
have helped Investing in the Indian Pharmaceutical Industry develop contingency plans and
have helped it develop strategies to be able to use strengths to ward off potential threats and
weaknesses successfully.  

6. Chance events
Chance events in the model refer to those events and conditions in potential markets that are
not likely to occur with surety but instead, will provide opportunities, or threats to firms on
their occurrence – depending on the risks taken by the firms. For Investing in the Indian
Pharmaceutical Industry, chance events have included:

6.1. Random events

Random events may affect the Investing in the Indian Pharmaceutical Industry business
positively or negatively – depending on the nature and timeliness of occurrence. Random
events have influenced Investing in the Indian Pharmaceutical Industry in different manners,
depending on how they impact the business operations and marketing communications of the
company at large. Random events are important for Investing in the Indian Pharmaceutical
Industry for its business growth and operations internationally in search of new opportunities,
as well as to overcome threats and problems in existing markets. 

6.2. Natural disasters

Natural disasters block the business for Investing in the Indian Pharmaceutical Industry in
their occurrence. Business activities and operations for routine are disrupted and often halted
because of natural disasters. Additionally, consumer markets and activities are also halted and
disrupted – and often channeled towards other behavior and activities which lead to
disturbing the product activities, and business operations for Investing in the Indian
Pharmaceutical Industry. 

6.3. Scientific breakthroughs

Scientific breakthroughs support the operations and activities of Investing in the Indian
Pharmaceutical Industry by providing it with support and advancement opportunities
technologically s well as for operational processes. Investing in the Indian Pharmaceutical
Industry has benefitted from scientific breakthroughs in its internationalization processes and
plans by having the technological knowledge and advancement that supports its production
capacities and other business operations and activities. 

6.4. Terrorist activities

These hamper business operations and activities for Investing in the Indian Pharmaceutical
Industry by blocking its access to specific consumer markets and regions. The company is
unable to carry out the operation in regions targeted with terrorist activities with respect to
not only production but also import quotas. Moreover, terrorist activities also influence sales
and marketing campaigns of the com0any in specific regions – depending on the political
friction of the government with other governments and markets.   

7. Demand conditions
Demand conditions are those events and conditions that lead to the success of a firm in any
given market Local, and home demand is important in not only exposing a firm to the
challenges of a bigger market, but are also important I pushing the firm towards expansion,
and possibilities of expansion. 

7.1. Size of the domestic market

The size of the domestic market has been important for Investing in the Indian
Pharmaceutical Industry in its internationalization and expansion measures. This is because
of two primary reasons. Firstly, the increased size of the local markets and domestic
consumers is important for companies to understand the dynamics at play with larger
markets, and helps them strategize, and plan operations accordingly. This increased market
size and domestic players have allowed Investing in the Indian Pharmaceutical Industry to
measure and identify its own strengths and weaknesses with respect to growth, and contain
them accordingly.  Secondly, larger market size is also important for pushing the firm, and
brand into exploring the possibility of expansions and new markets. 

7.2. Sophisticated and demanding domestic customers

Sophisticated and demanding domestic sounders for Investing in the Indian Pharmaceutical
Industry have pushed the firm into utilizing its resources towards innovation, and have led the
firm into developing unique products for the customers. With demanding domestic
consumers firms such as Investing in the Indian Pharmaceutical Industry have been able to
realize their crate and innovative capabilities, and have put them into use to develop new
products, or processes to help the business grow.

7.3. Customer needs that anticipate those elsewhere

Domestic consumers and consumer behaviour patterns are also important for predicting and
anticipating the behaviour and demands of consumers in other markets. For consumers with
the same profile, companies can often predict behavior of market-specific consumers in
relation to the behaviour displayed by the same profile consumers in other markets. 

Firms like Investing in the Indian Pharmaceutical Industry can also influence the behaviour
of the consumers in one market based on the response they have received in another market.
This is important for strategic development within the firm for global strategies as well as
global expansion and development in other countries and markets.

SWOT Analysis of Sun Pharma Industries

For Sun Pharma Industries, SWOT analysis can help the brand focus on building upon its
strengths and opportunities while addressing its weaknesses as well as threats to improve its
market position.

Sun Pharma Industries Strengths

The strengths of Sun Pharma Industries looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths include its
financial position, experienced workforce, product uniqueness & intangible assets like brand
value. Below are the Strengths in the SWOT Analysis of Sun Pharma Industries :

1. Strong growth in emerging market business

2. Introduction of Pantoprazole & Eloxatin in US market has very limited competition

3. They have strong marketing & sales force of over 12,000 employees

4. They have successfully acquired Taro pharma which has further consolidated their position
in Indian markets
5. Strong brand presence in India and US markets
Sun Pharma Industries Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Sun Pharma Industries SWOT Analysis:

1. Stiff competition from many Indian and other global brands means limited market share
growth

2. Limited presence in emerging markets and European countries

Sun Pharma Industries Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Sun Pharma Industries SWOT
Analysis:

1. They can leverage their acquisitions to further increase the growth

2. They can increase their presence in contract manufacturing

3. Increasing healthcare awareness in India

Sun Pharma Industries Threats

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Sun Pharma Industries are
as mentioned:

1. There is growing competition in generics market

2. Stringent patent regulations

3. High price sensitivity of consumers

Sun Pharma Industries Competitors

There are several brands in the market which are competing for the same set of customers.
Below are the top 4 competitors of Sun Pharma Industries:
 1. Cipla:
 Incorporated in 1935, Cipla has over 1500 products in various therapeutic categories
and presence in over 150 countries. It is the largest manufacturer of antiretroviral
drugs in the world and had launched World’s first oral iron chaletor in 1994.
 In 2014, its revenue increased by about 22% but witnessed a drop in profits by 10% as
compared to the previous year.
2. Lupin:
 Founded in 1968 and headquartered in Mumbai, Lupin is a transnational
pharmaceutical company ranked 3rd largest(by revenue) in India that produce wide
range of generic formulations, biotechnology products, APIs.
 Lupin showed a growth of 40% in profits in the year 2014 as compared to profits of
Rs 13141.6 million in 2013
 It has recently announced acquiring 100% stake in Medquímica, a Brazilian
pharmaceutical, which marks its foray into the Brazilian markets and had also
acquired Laboratories Grin in Mexico last year

3. Aurobindo Pharma:

 Founded in 1986, AurobindoPharma has its presence in therapeutic segments like

anti-retrovirals, neurosciences, anti-diabetes, cardiovascular, gastroenterology,
etc. It exports its products to over 125 countries and generates around 70%
revenue from International operations.
 In 2014, its consolidated revenue increased by 38.3% and made a profit
of Rs.11729 million showing a growth of about 300% over the previous year.

4. Dr. Reddy’s laboratories

 It is a Hyderabad based multinational pharmaceutical company that

providesmedicines and services in Europe, North America and emerging markets of
South America, Asia and Africa
 Generic formulations being their biggest business, they also offer APIs,
pharmaceutical services, biosimilars and proprietary products
 It has recently launched Somazina in India, used for treatment of stroke or cerebral
infarction