Analysis of the Internal Environment of the Pharmaceutical Distributor Operation in Russia Using SWOT Analysis

Abstract

BACKGROUND: The general directions of the organization’s development should be clearly formulated, i.e., a business strategy should be developed in order to achieve the long-term competitive advantages in the operation of a pharmaceutical distributor with its own pharmacy warehouse in Russia.

AIM: Identification of strengths and weaknesses, opportunities and threats in the operation of a pharmaceutical distributor with its own pharmacy warehouse.

MATERIALS AND METHODS: The SWOT analysis was used to analyze the environment, which enabled a joint study of the external and internal environment. During the study, content analysis of secondary sources of information was used (data from the Federal State Statistics Service, DSM Group marketing agency), as well as sociological analysis.

RESULTS AND DISCUSSION: During the SWOT analysis, ten factors were identified that ensured the normal functioning of the pharmaceutical distributor, as well as 11 negative factors were identified that negatively affected the operation of the pharmacy warehouse. The article presents qualitative description of the strengths and weaknesses. Ten factors were attributed to the favorable opportunities for the organization’s activities; seven positions were considered as threats to the activities of the distributor. It should be noted that all factors of external environment are in a state of strong mutual influence. A change in one of the factors necessarily leads to a change in other factors. Therefore, their study and analysis should not be carried out separately, but systematically, with tracking not only the actual changes in one factor but also the process how these changes will affect other factors. After identifying strengths and weaknesses, opportunities and threats, a table was compiled and all intersections were analyzed, i.e., all possible pairwise combinations that would help determining the future strategy. At present, the strategic goal of a number of wholesale companies in the pharmaceutical market is defined as increasing return on investment.

CONCLUSION: In this article, SWOT analysis has been used to provide some suggestions on overcoming weaknesses and threats in the activities of a pharmaceutical distributor, as well as on proper use of strengths and opportunities. During the study, pharmaceutical industry practitioners discussed the impact of various economic factors, strengths, opportunities, weaknesses, and threats regarding the activities of pharmaceutical distributor, as well as related problems and prospects for the future.