- 1 About Abbott Laboratories
- 2 Quick Stats About Abbott Laboratories
- 3 SWOT Analysis of Abbott Laboratories
- 4 Strengths of Abbott Laboratories
- 5 Weakness of Abbott Laboratories
- 6 Opportunities for Abbott Laboratories
- 7 Threats for Abbott Laboratories
- 8 Limitations of SWOT Analysis for Abbott Laboratories
- 9 Weighted SWOT Analysis of Abbott Laboratories
- 10 Recommendations Of Abbott Laboratories
- 11 Conclusion
The SWOT analysis of Abbott Laboratories analyze the brand by its strengths and weaknesses, opportunities, threats, and opportunities.
The strengths and weaknesses of Abbott Laboratories SWOT Analysis are internal factors, while opportunities and threats are external factors.
This allows a brand such as Abbott Laboratories SWOT Analysis to compare its business and performance to other brands.
Abbott Laboratories is a leading brand in the pharma and healthcare sectors. The table below lists the Abbott Laboratories SWOT, which stands for Strengths, Weaknesses Opportunities, Threats, and top Abbott Laboratories competitors. It also includes its target market segmentation and Unique Selling Proposition.
About Abbott Laboratories
Abbott Laboratories was established by Dr. Wallace Calvin Abbott in 1888. Its headquarters are located in Abbott Park (Illinois), United States. It serves the Pharmaceuticals, Health Care, and Medical Devices industries.
Wallace Abbott was a physician who owned a pharmacy when he founded the company. He was a pioneer in starting his own business, which led to today’s MNC Abbott Laboratories.
Its famous slogan is “A Promise for Life”. Abbott promises that they will be there for people in pursuit of healthy lives.
This has been their way of Abbott for more than a century–passionately and thoughtfully translating science into lasting contributions to health.
Quick Stats About Abbott Laboratories
|Founder||Dr. Wallace Calvin Abbott|
|Origin||Illinois, United States|
|No. of Employees||109,000 (2020)|
|Market Cap||$194.05 Billion (2020)|
|Annual Revenue||$34.608 Billion (2020)|
|Net Loss||$4.495 Billion (2020)|
SWOT Analysis of Abbott Laboratories
The strengths and weaknesses of Abbott Laboratories are shaped by its internal strategic strengths. The company’s global business can bring it many benefits.
Abbott Laboratories is aware of the opportunities and threats facing the business. This allows them to identify the best ways to expand and protect their business.
The Swot Analysis by Abbott Laboratories shows that the company will not be able to develop or remain viable long-term if it does not address these issues.
Strengths of Abbott Laboratories
❤️ Distribution Network and Cost Structure: Abbott Laboratories is present in almost every state. The company is supported by a strong distribution network which ensures its products are easily accessible to all consumers and that they are delivered promptly. Abbott’s low-cost structure allows the company to manufacture and market its products at lower costs, making them more affordable for the general public.
❤️ Acquisition and Consolidation: It is a formidable alliance in the pharmaceutical manufacturing industry. It has acquired over 40 companies so far and is now a dominant force within the industry. St. Jude Medical, a regional firm, was one of its recent acquisitions.
❤️ Perceived and Global Presence: Abbott Laboratories are located in more than 150 countries. Both developed and developing countries have long-haul access to long-term medical care products. They can therefore be used by a wider variety of people. Since its inception, it has been a trusted name in the industry.
❤️ Customer Satisfaction The firm has high levels of customer satisfaction with current customers as well as strong brand equity with future consumers due to its specialized customer relations management department.
Weakness of Abbott Laboratories
In 2010, the company saw a drastic reduction in its R&D budget. This could lead to a weak R&D department, which can be problematic as R&D is essential for new product development. This could have a negative effect on the company.
❤️ Drug Lawsuits –Tricor and the FreeStyle diabetic lines, as well as St. Jude defibrillators, have all been sued by Abbott. According to the complaint, St. Jude Medical was aware of a battery-depletion issue in some of their cardiac defibrillators as early as 2011. According to reports, the parents and children of a diabetic woman who died from using Abbott’s FreeStyle blood glucose monitor system and test strips for diabetes sued the company.
❤️ Limited Success in Core Businesses: While Abbott Laboratories is one the most successful companies in its field, its culture has made it difficult to expand into new product areas.
❤️ Diversification of the Workforce: Abbott Laboratories has a largely local workforce with a few people from different racial or ethnic backgrounds. When there isn’t enough diversity at work, employees of different ethnicities find it difficult to fit in.
Opportunities for Abbott Laboratories
❤️ Online Platform Maximum people use the internet today. Abbott Laboratories can communicate with customers online as a result. Online merchants can also be a benefit to Abbott Laboratories. Social media is also a great way to get customer service and feedback.
❤️ Technological Design: Technology offers significant benefits across a broad range of industries. Automation can be used to reduce expenses. Technology advancements make it possible to collect better data on clients. This also helps marketing activities.
❤️ Income Level After the recession, there was a rise in family incomes, which coincided with an increase in consumer spending. Due to the expansion, new clients will be attracted to Abbott Laboratories. This will lead to an increase in Abbott Laboratories’ target market.
❤️ GlobalizationAbbott Laboratories’ activities are not limited to their country due to greater globalization. It can also expand its activities to other countries by joining these markets and taking advantage of the opportunities in these areas.
Threats for Abbott Laboratories
❤️ Fluctuation in the scale: Because they are a global corporation, they sell its products around the world and import raw materials from other nations. The development of its benefits could be affected by a negative change in the switching scale.
❤️ New Entrants & Intense Competition: The threat of new technological breakthroughs in the pharmaceutical industry to Abbott Laboratories is high because potential customers who are attracted to new technology could abandon Abbott Laboratories and choose to work with competitors. This will reduce Abbott Laboratories’ market share. (4). New firms are entering the market and taking market share away from existing ones. These new firms could cause Abbott Laboratories to lose customers.
❤️ Government Intervention In medical care administration, and legislation, governments of many countries including the United States have been found to be more restricted and regulated. This could put a halt to Abbott Laboratories’ compliance with the different requirements of different countries.
❤️ Rising Fuel Prices: Abbott Laboratories has seen its input costs rise due to rising fuel prices. This is due to the fact that other businesses that supply inputs to the firm have seen their prices rise, which has caused them to increase their pricing.
Limitations of SWOT Analysis for Abbott Laboratories
The SWOT analysis is a popular tool for strategic planning, but it does have some limitations.
- Some capabilities or factors can be both a strength or a weakness of an organization. This is one of the main limitations of SWOT analysis. Changes in environmental regulations can pose a threat to a company, but can also present an opportunity for the company. If the company is able to develop products faster than its competitors, it could be a competitive advantage.
- SWOT is not a way to gain a competitive advantage. It should not be a goal in and of itself.
- This matrix is just a starting point to discuss how strategies might be implemented. The matrix provided an evaluation window, but not an implementation plan. It was not based on the strategic competitiveness of Abbott Laboratories.
- SWOT is a static analysis – an analysis of the status quo that takes into account any potential changes. The dynamics of a competitive landscape may change as circumstances, capabilities, threats, and strategies change.
- The SWOT analysis could lead a firm to focus too much on one external or internal factor when formulating its strategies. SWOT analysis may not show the interrelationships between key internal and externe factors. This could be important when devising strategies.
Weighted SWOT Analysis of Abbott Laboratories
Due to the limitations of the SWOT matrix/SWOT analysis, corporate managers decided that each firm’s internal strengths and weaknesses should be given weightage.
Organizations assess the impact of future events on company performance and the likelihood that they will occur.
This is a Weighted SWOT analysis. This is more effective than a simple SWOT analysis. With the Weighted SWOT Analysis, managers at Abbott Laboratories can concentrate on the most important factors and ignore the rest.
This solves the problem of organizations making too many lists, but not enough critical factors.
Recommendations Of Abbott Laboratories
The Swot Analysis allows us to see that the company has many flaws, particularly in its ability to reach the global market, and the inefficient structure of the R&D industry.
This business is also facing problems due to government regulations. You can help to reduce its weaknesses by using the latest digital marketing strategies.
It is the best way to increase your market share, as so many people use the internet. Abbot Laboratories is, therefore, able to have a global presence through digital marketing.
The SWOT Analysis of Abbott Laboratories revealed that it is India’s largest pharmaceutical company.
It is well-equipped to serve customers and has the potential to expand in an international market that is rapidly developing. Despite these advantages, there are still some weaknesses in the market.
It is not well-known in the global marketplace and government intervention in business policies can be a disadvantage.
The latest digital marketing techniques can help to eliminate some of its weaknesses. It is the most effective way for a business to expand its market share, as people now go online.
It is vital for any business to have a global presence, which can be achieved through digital marketing.
To learn more and improve your skills, IIDE offers a 3 month advanced online digital marketing course.
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