Dr. Reddy's SWOT Analysis

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Dr.

Reddy’s SWOT Analysis


Strengths
• Strong brand recognition - Reddy's Dr products have strong brand
recognition in the Global Business industry. This has enabled the company
to charge a premium compare to its competitors in Mergers & acquisitions
industry.
• Wide geographic presence - Reddy's Dr has extensive dealer network and
associates network that not only help in delivering efficient services to the
customers but also help in managing competitive challenges in Global
Business industry.’
• Automation of activities- brought consistency of quality to Dr. Reddy's
Laboratories Limited products and has enabled the company to scale up
and scale down based on the demand conditions in the market.
Weaknesses
• Gross Margins and Operating Margins which could be improved and
going forward may put pressure on the Reddy's Dr financial
statement.
• Miscalculated mergers and acquisitions: Betapharm led to huge
losses.
Opportunities
• Lower inflation rate - The low inflation rate bring more stability in the
market, enable it to borrow at lower interest rate.
• Opportunities in Online Space - Increasing adoption of online
services by customers will also enable Reddy's Dr to provide new
offerings to the customers in Mergers & acquisitions industry.
• Increasing lifestyle diseases – Diabetes, Cholesterol, High/Low Blood
Pressure provide the pharma giant an opportunity to create
medicines to counter theses diseases.
Threats
• Changing political environment with US and China trade war, Brexit
impacting European Union, and overall instability in the middle east.
• Competitors catching up with the product development - It is facing
stiff challenges from international and local competitors.
• Imitation of the counterfeit and low quality product is also a threat
to Dr. Reddy's Laboratories Limited’s product especially in the
emerging markets and low income markets.
• Regulatory issues especially with the US Food and Drug
Administration including inspections of production units.

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