Brief description of your offering- Product/service (To the

point)
Origin Formulations deals with these products-

1. Liquid Syrup (General Section)

2. Ointments (General Section)

3. Capsules (General Section)

4. Tablets (General Section)

5. Dry Syrup Powder (Cephalosporin Section)

6. Injectable Powder – Dry (Cephalosporin Section)

7. Tablets (Cephalosporin Section)

Please see: the above mentioned are only the heads. Detailed product basket under the specified
heads are mentioned in the file attached with the mail.

List down all the hypothesis/assumptions or questions about

the external performance and internal environment (Capture all
your assumptions on importance and confidence scale. Be as
specific as possible) You may refer to secondary sources to
better frame your questions.
SWOT Analysis of Origin Formulations:-
Strengths-
1. Experienced marketing Employees.
2. WHO-GMP compliant manufacturing unit.
3. Vast range of products ( General as well as Cephalosporin)
4. International Accreditions.
5. One of the leading manufacturing contractor in domestic
markets.
6. 37 countries international agreements have been done.
7. 178 Dossiers have been sent to the countries and 533 are
already in preparation.
Weakness-
1. Plant’s capacity is limited to cater domestic and ROW (Rest of
World) markets.
2. Plant is situated in a different state, therefore the chances of
mismanagement are high.
3. Shortage of skilled manpower in the plant at the location
where it is situated. (Kotdwar, Uttarakhand)
4. Absence of super speciality equipment, like HPLC, which can
make their procedure move more systematically.

Oppurtunities-
1. Vast scope of doing business due to agreements done and
wide variety of product range.
2. The specialised team is an opportunity for the company’s
growth as together they can increase their turnover.
3. Expansion of more clients in domestic as well as in
international markets.
4. There is a high profit margin in tender business and currently
the company is working in 3 states and therefore can expand in
other states as well.

Threats-
1. With more number of products falling into DPCO regulations,
there is a fixed price that company has to charge which reduces the
profit margin for the company.
2. Hike in raw material prices, which can fluctuate the costing
and profit margins in domestic as well as in the international
markets.
3. Changing guidelines of different countries, will lead to
reframing of dossiers as per the new requirements, which adds on
the hard-work and an additional cost for the company.
PORTER’s Five Force Analysis:

Threats of new entrants (HIGH)

- With the manufacturing facilities available, there can be many

entrants into the pharmaceutical market, specific to contract
manufacturing.
- Also, there is high outsourcing to Indian contract
manufacturing market and hence there are many firms who enter
the pharmaceutical market.
- Also, in the international markets, there are different and less
stringent requirements, which lead to high entrants in the
pharmaceutical market.

Bargaining Power of suppliers (MODERATE)

- Sales of such industry are concentrated in handful of large

players and that had led to decrease in the bargaining power of
suppliers.
- For Origin Formulations, there are various distributors
available, for a single drug and there are only few drugs, for which
direct supply is made available.
- Difficulty found in manufacturing API’S like steroids, sex
hormones and peptides gives bargaining power to suppliers.
 Bargaining Power of buyers (MODERATE)

- Hospitals and other health care organizations buy in bulk

quantities and exert pressure and pharmaceutical companies to
keep prices in check.
- In Tender business too, there is a bulk order made by the
government and therefore the price fixation by the contract
manufacturing companies should be the minimum, in order to bag
the tender order.
- Regular patients have lost the bargaining power as there is
increase in prices of generic drugs.

Threat of substitutes (LOW)

- Substitute threat is lower, but Ayurvedic and Homeopathy

drugs can be a substitute.
- Demand for generic versus brand name drugs has increased
because of the costs involved.

Competition rivalry (HIGH)

- High rivalry among companies in the industry, because more

of outsourcing of contract manufacturing goods is done to Indian
companies.
- In future expected to have competition from big companies
backed by huge financial muscle.
- Also, there is an increase in the competition with every avenue
(country) that the company looks forward to. The competitor rivalry
that the company faces is different from country to country and also
different product based.
PESTLE Analysis:

Political Factors:
There are different elements in the political sphere that could have
an impact on pharmaceutical industry such as changing tax
legislation, consumer protection and employment regulations, price
regulations and insurance mandates. For example, a change in tax
policies may call for a strategy adjustment that either takes
advantage of increased government spending for healthcare or
makes allowances for reduced government subsidies. Or, changes
in employment law, like the 2016 legislation that impacted
employee overtime requirements, could mean major adjustments in
staffing and overtime needs.
- Political factors affecting:
Low Trade Restrictions
Skilled Government
Political Stability
Reduced Costs
Experienced Political Environment
Governmental Support

Economical factors:
Economical concerns such as unemployment, inflation, and interest
rates etc. influence both directly and indirectly on the financial
performance of the healthcare industry. These changing conditions
can have an impact on public spending policies and purchasing
power parity. For example, if one manufacture’s healthcare
equipment, a high rate of unemployment will mean fewer people are
able to purchase his products. Or, more people losing jobs means a
greater loss of health insurance coverage, which will affect the
types of health services people seek out.
- Economical aspects for:
Unwavering Economy
Competitive Market
Public Investments in Research and Development
Taxes
Government Expenditure

Social factors:
A social analysis must identify changes in demographics, values,
and beliefs of various consumer groups. For example, a hospital
should know about the community it serves to avoid violating
widespread values or norms. A marketing strategy should be
formulated considering these types of factors also. Using content
that shows that business is associated with a specific socio-cultural
set of beliefs/values will boost the effectiveness of marketing and
impact a positive performance.
- Social aspects for:
Growing Economy
Workforce
New Acquisitions
Education Level
Cultural Diversity
Growing Demand

• Technological
Technological advancements will create new business prospects
both in terms of new therapy systems and service provisions.
Social Media for Healthcare.
Customized Treatments.
Direct to Patient Advertising.
Direct to patient communications.
Also, with technological advancement, there are super-speciality
equipments available, which would help company ease the
manufacturing process and help it in making more systematic.

• Legal
Pharmaceutical industry is a highly regulated industry and the
Company’s operations are subject to extensive regulations in
different markets in which the Company does the business.
In the markets where the Company supplies the products, the
regulatory authorities of those markets must first approve the
product including the manufacturing facility where the product will
be manufactured before the Company can sell the products in those
markets.
Applicable regulations are increasingly becoming stringent
and the penalties for non-compliance with these regulations can be
severe, including the revocation or suspension of licenses and
imposition of fines apart from loss of reputation.
The Company continuously evaluates the quality of its
products, their manufacturing and supply chain processes to ensure
that all the applicable regulations are complied with at all times.
Litigation risk is also very high in pharma industries.

• Environmental
Pharma companies need to see how their business and
marketing plans link in with the environmental issues.
 There is also an opportunity to incorporate it within their
Corporate Social Responsibility programmes.
Marketing and new product development should identify
economic opportunities to promote as well.

Which all assumptions are you planning to test for your

project?
Assumptions we are planning to test are as follows:
- We are assuming that from Domestic V/s international market, International market will
give more profit and hence the focus is on increasing the international clients.
- Company is currently into its gestation period and its vision is to incur Profits by 2020 and
enter into Regulated and Semi-Regulated Markets.
- Company can incur profits by increasing its domestic sales.
- Increased turnover from 32Cr to 64Cr by 2020.
- Upgradation of plant as per one country's regulation, will lead to addition of several other
countries for its international business.

What is your strategy for testing your assumptions? (Who will

be your audience and what will be the process of testing?)
1) Secondary research to understand which market is more
profitable between domestic and international market in the
pharmaceutical industry.
2) Primary research on company's costing method in the domestic
as well as in the international markets.
3) To understand the organization’s path for the ROAD AHEAD,
which includes company's planning regarding its future international
markets.
4) Planning a visit to the plant located in Kotdwar, Uttarakhand.
5) To study the current revenue streams in the domestic market and
if there is a need to foray into another streams.
How do you plan to get feedback or observations from relevant
stakeholders?
Relevant Stakeholders: Suppliers, B2B Buyers, Government (Indian
and Foreign), Employees, Investors, Competitors, Environment,
Consumers (end users), Insurance Companies.
-- Feedback from management and sales team to understand about
the repeat purchases from the existing clients.
-- Understanding what employees think about the organization, with
a job satisfaction survey.
-- Feedback from doctors who can recommend medicines to the
consumers.
-- Feedback through website by putting feedback button.

What do you plan to measure?

-Customer Satisfaction
--Quality of drugs
--Smooth working of departments
--Effectiveness of drugs
--Employee satisfaction

How will you know that you are right? (Have your validation
criteria set)

--By conducting standard survey, for e.g:- Job satisfaction survey by

'American Journal of Psychology'.
--By setting a standard for the return of drugs and complaints. If it
exceeds that limit,we can validate the process.