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Allergan (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Allergan

Allergan is a global health care company engaged in discovery, development and commercialization of specialty pharmaceutical and medical device products for the ophthalmic, neurological, medical aesthetics, medical dermatological, breast aesthetics, obesity intervention and other specialty markets. The company is headquartered in Irvine, California and employs more than 7,800 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Highly focused on a small number of niche markets
  • Relatively well insulated from generic erosion
  • Products supported by favorable demographics and social trends
  • Complementary aesthetics portfolio will facilitate Botox sales

Weaknesses

  • High dependence on Botox sales
  • Series of late-stage pipeline disappointments

External

Opportunities

  • Expanded range of Botox indications would strengthen future sales
  • Use of established position in ophthalmic, neurotoxin and associated markets to boost late-stage pipeline
  • Upside from products not forecast to launch

Threats

  • Risk of greater than forecast erosion of Botox’s market share by other neurotoxin products
  • Earlier than expected Restasis generics
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