Swot-Analysis

Situation Analysis (SWOT Analysis)

The following SWOT analysis captures the strengths and weakness within Dragon Biotech and the opportunities and threats that exist in our environment. This analysis highlights areas to be leveraged and points out where we must improve within the firm and within our industry and market.

As we look at our SWOT analysis to follow, we are in a sustainable overall position, we have strengths to balance our weaknesses, and particularly our knowledge of where we are heading for and what our customers need. We also have some attractive opportunities. However, we have a weakness in competiting against price-oriented competition from both local and international brand names.

Strengths:

Dragon Biotech's strengths include:

Ш Strong business model embracing both generic and proprietary drug development.

Ш Proven proprietary technology platform that outperforms competitors' methods.

Ш Solid financial position with established cash flow.

Ш Flagship product, EPO, achieved remarkable revenue growth in a US$4,8 billion market.

Ш Unique marketing strategy to penetrate geographic areas with quick drug approvals.

Ш Experienced well-connected management team and board of directors.

Ш Captured 30% of EPO market share in china, endorsed by Chinese medical Assn. For superior quality EPO.

Weaknesses:

Ш Over dependence on EPO and therefore, a lack of diversification in our revenue sources.

Ш Our EPO price is a high-end product, and this limits its sales volume. Most patients in China are from suburban or rural areas. They have huge demand for EPO, but they couldn't afford it.

Ш China's new reimbursement policy requires people to pay part of their drug bills, which were previously, all covered by the government. Due to EPO's relatively high price, the new policy will reduce the consumption of EPO.

Ш Lack of a China company made it more time-consuming and costly to sell products to China.

Opportunities:

Opportunities available to Dragon include:

Ш The booming Chinese economy creates an increasing need for more expensive yet better quality drugs.

Ш China has committed to devote its medicine quality improvement and patents protection after its WTO entry. This will significantly reduce the number of "me-too" drugs as well as competition among brands. The State Drug administration will continue to issue regulations to normalize the market. Meanwhile, the Ministry of Health also issued regulations to control drug usage in