CONTENT

1. What is SWOT analysis? -----------------------------------------------------------------------2

• Definition and introduction ---------------------------------------------------------------------2
2. SWOT analysis concept -------------------------------------------------------------------------2
• SWOT ---------------------------------------------------------------------------------------------2
3. How to prepare the SWOT analysis? ----------------------------------------------------------2
4. Internal environment analysis ------------------------------------------------------------------3
• Strengths ------------------------------------------------------------------------------------------3
• Weaknesses ---------------------------------------------------------------------------------------3
5. External environment analysis -----------------------------------------------------------------3
• Opportunities -------------------------------------------------------------------------------------3
• Threats --------------------------------------------------------------------------------------------3
6. Strategies included in SWOT matrix ----------------------------------------------------------3
7. How to conduct a SWOT analysis? -----------------------------------------------------------4
8. SWOT analysis in hospital ---------------------------------------------------------------------5
9. SWOT analysis in retail pharmacy ------------------------------------------------------------6
10. SWOT analysis in pharmaceutical industry --------------------------------------------------7
11. References ----------------------------------------------------------------------------------------7

1
 WHAT IS SWOT ANALYSIS?

DEFINITION AND INTRODUCTION:

• “SWOT analysis is a strategic planning method used for evaluating the strengths and
weaknesses and opportunities and threats of the institutions. The initials of the English
words Strengths (strong aspects), Weaknesses Opportunities and Threats are used for
the abbreviation of SWOT”.
• In accordance with this, opportunities are external factors that can provide positive
results for the institution, and threats are external factors that can prevent the
maintenance of the existence of the institution.
• While strengths are the institution’s abilities that can make it superior to its competitors
and weakness are internal factors, where the institution is inferior to its competitors.
• SWOT analysis is important for healthcare institutions for strategic planning and for
ensuring the healthy development of the healthcare institution.
• SWOT analysis tries to determine the strengths and weaknesses of the institution and
the opportunities and threats that the organization faces.

SWOT ANALYSIS CONCEPT:

SWOT:
• STRENGTHS mean the capabilities of the institution or the work unit that ensure a
successful performance
• WEAKNESSES mean the opposite, that is the lack of capabilities preventing a good
institution or work unit performance
• OPPORTUNITIES mean the tendencies, powers, events and thoughts of the
institution that can be converted into capital
• THREATS mean the powers and events that develop out of the control of the
institution.

HOW TO PREPARE THE SWOT ANALYSIS?

SWOT analysis is a control tool showing the condition of the organization in the evaluation of
the existing condition. In the guidance of the process, there are some important hints on how
to prepare the SWOT analysis. These are:
1. Being realistic about the strengths and weaknesses of the Hospital/Program
2. Showing the difference between the current situation of the Hospital/ Program and the
possible situation in the future.
3. There must be specific evidence rather than general evidence and gray areas must be
avoided
4. SWOT must be short and simple, complexity and excess analyses must be avoided.
5. It must not be forgotten that SWOT is an individualized instrument.

• SWOT analysis includes the analysis of both the internal and external environment of
the institution for determining the opportunities and threats arising out of the external
environment as well as the strengths and weaknesses inside the institution.

2
INTERNAL ENVIRONMENT ANALYSIS
1. Strengths:
Strengths mean having a better resource advantage than the competitors and the potential of
meeting the expectations in service provision. If the institution gains a competition advantage
in the market, this means that it has shown its capabilities distinguishing itself from other
institutions.

2. Weaknesses:
The weaknesses are the internal environment factors of the institution and create a negative
value for the client. Weaknesses result in a competition disadvantage for the institutions.
The institutions in this situation have to accept their weaknesses and face the facts. The
institutions have to find the answers to the following questions to determine their weaknesses.

EXTERNAL ENVIRONMENT ANALYSIS

3. Opportunities:
Opportunities are the situations and developments that can help the hospital/program reach its
target.

4. Threats:
The threats are external situations and matters that have the possibility to keep the hospital or
program from reaching its objectives.

STRATEGIES INCLUDED IN SWOT MATRIX:

The SO (Strengths - Opportunities), WO (Weaknesses - Opportunities), ST (Strengths -
Threats), WT (Weaknesses - Threats) strategies are included in SWOT matrix and they are
defined as follows
1. SO Strategy:
It is the strategy of obtaining maximum benefit both from the strengths and the opportunities
out of the organization. It is the strategy of using the strengths of the institution to obtain
maximum benefit from the opportunities.
2. WO Strategy:
It is the strategy targeting the minimization of weaknesses while making use of the superiorities
created by the opportunities.
3. ST Strategy:
It is the strategy, where the strengths of the organization are in abundance, however it becomes
subject to external threats to a great extent. In ST strategy, the strengths are brought to
foreground in coping with the external threats and dangers.
4. WT Strategy:

3
It is a situation where both the weaknesses of the organization should be remedied, and certain
measures against the threats should be developed.

INTERNAL EXTERNAL

Characteristics Characteristics Elements in Elements in

of an of an organization’s external
organization organization external environment
that give it that put it at a environment that could
advantages disadvantage that allow it to endanger the
over its relative to its formulate and business, its
competitors. competitors. implement profitability or
strategies to it competitive
improve advantages.
performance.

HOW TO CONDUCT A SWOT ANALYSIS?

A SWOT analysis is rarely completed in isolation; it generally makes up one part of a broader
business analysis. And while it is itself an assessment framework, a SWOT analysis is also an
effective tool to help summarize other findings.

For example, an analyst can’t really assess a company’s strengths and weaknesses without first
understanding the business and its industry. They may wish to leverage other tools and
frameworks in order to accomplish this, including:

• Hax’s Delta Model – This will help to understand competitive positioning.

• Ansoff’s Matrix – This will help visualize the relative risk of a management team’s
growth strategies.
• Financial ratio analysis – This will help identify trends (year-over-year), as well as a
firm’s relative performance (using benchmarking data).

4
 SWOT ANALYSIS IN HOSPITAL
STRENGTHS
• More than 10 years on the market
• Good reputation
• Experienced staff
• Famous doctors
• English speaking personnel
• Implementation of information
technologies
• Good treatment results
• Patient satisfaction
• Central location
• High level emergency and industrial
medicine
OPPORTUNITIES
• Implementation of public medical
insurance system
• Wider coverage of insurance
medicine
• New treatment and diagnostic areas
• Growth of population of city
• Aging of population
• Cooperation with both private and
public insurance companies
• New innovative services
5
WEAKNESSES
• Lack of motivation of staff
• Absence of QA program
• Lack of staff development
• Strong mechanistic organizational
structure
• Poor communication between
managerial and executive staff
• Absence of marketing plan
• Shortage of staff
• High prices
• Absence of some essential services
(e.g. CT SCAN, MRI etc)
• Nursing personnel turnover
• Lack of stationery ward
• Lack of space
• No parking area
THREATS
• Competing private hospitals
• Construction of new, well equipped,
public hospitals
• Unemployment rate
• High cost of medical equipment and
supplies economic shifts (inflation,
devaluation)
• Governmental politics to support
private businesses
• Limited financial resources
• Continuous changes in international
treatment and diagnostic protocols
• Logistics (transportation, custom
regulation, taxes)
• Unforeseen emergencies
• Loss of key staff and associates
 SWOT ANALYSIS IN RETAIL PHARMACY

STRENGTHS WEAKNESSES
Ability to deliver a quality retail • Limited company resources:
pharmaceutical product throughout the • Limited employ resources
provision of a superior level of quality • Limited Inventory
customer service and convenience via the • Business operations
following offerings: • Lack of Multiple facilities
• Rapid prescription service times
• Pharmaceutical compounding
services
• Partnerships
• Availability of delivery service
• Location
In addition, pharmacists need to play to their
strengths. Remember community
pharmacists provide:
• Expert advice
• Professional service
• Extensive knowledge
• Personal touch
OPPORTUNITIES THREATS
• Establishment of strategic • Increase in market competition
partnerships • Unpredictabilty of consumer
• Expected increase in demand for purchasing behaviour
healthcare services, particularly • Additional government regulations
pharmaceuticals, due to the growth and tax policies
within the senior population • Pricing pressures presented by both
demographic international and online pharmacies
• Supplemental demand for • Expected short fall of qualified
pharmaceutical services may be pharmacists by 2020
expected given the enactment of the • Changes as a result of the new
Patient Protection and Affordable contract
Care Act of 2010. • Supermarket competition
• Shop layout: Invest in merchandising • Changes in the licensing regulations
and category management to make • Manpower
the most of the pharmacy
• Technology: With internet usage
increasing and electronic scripts
around the corner – pharmacists need
to make sure they address these
developments to derive maximum
advantage

6
 SWOT ANALYSIS IN PHARMACEUTICAL INDUSTRY

STRENGTHS
• Steadily increasing demand
• High reliance of customer on the
product
• High profit margins in non-essential
drugs
• Skilled staff
• Wide spread base of buyers
• Resource and labour availability
• Setting the benchmark
WEAKNESSES
• Reliance on imported raw material
• Exposure to exchange rate volatility
• Extensive regulatory requirements
• Shortage of local available materials
• Inability to pass on increased cost of
production to end consumers for
drugs regulated by DRAP.
• Highly researched extensive industry
• Non availability of modern
technology
• Low profitability and low profit
margins

OPPORTUNITIES THREATS
• Low per capita consumption • High level of competition
• High profit margin opportunities in • Increasing cost of energy
non-essential drugs and products • Rising interest rates
• Room for research and drug • Currency devaluation
development • Inflation
• Government support • Insufficient power supply
• Growing space
• Financial support
• Patents
• Global market

REFERENCES:
• https://jag.journalagent.com/jaren/pdfs/JAREN-90958-ORIGINAL_RESEARCH-
DEMIRKOL.pdf
• https://corporatefinanceinstitute.com/resources/management/swot-analysis/
• https://www.researchgate.net/figure/SWOT-analysis-of-private-hospital-in-Baku-
Azerbaijan_tbl1_351513708
• https://www.pacra.com/sector_research/PACRA%20Research%20
%20Pharmaceutical%20Industry%20-%20May'22_1653635683.pdf
• https://swothub.com/pharmaceutical-industry-swot-analysis/
• https://creately.com/diagram/example/hr07831z1/swot-pharmacy-classic

LAST ACCESSED: NOVEMBER 28, 2022