Analysis of the New Market - Essay Example

GSK (GlaxoSmithKline), headquartered in Brentford, England, is a multinational pharmaceutical company. Founded in 2000, GSK is ranked to be sixth largest (by revenue) pharmaceutical company in the world (GSK Our Company). Its top selling drugs are Advair, Flovent and Ventolin and several other vaccines like diphtheria, tetanus, hepatitis B, etc. GSK operates in several south Asian countries, like Bangladesh. This paper is focused on new market analysis of Bangladesh with the aim of launching Scott Emulsion product of the company.

It also includes the study of the market environment by PESTLE analysis to find out whether it is a prospective market of the product or not (GSK Scott’s Emulsion). Before launching any product, a company should analyze the market to ensure that the product will be accepted by the customers or not. Pharmaceuticals are one of the most important manufacturing industries in Bangladesh. The industry meets almost 97 percent of the local needs and it also exports to around 80 countries. The other top pharmaceutical companies in the country are Square Pharmaceuticals, Incepta, Beximco, Acme, Opsonin, etc.

Among them, Square Pharmaceuticals hold the maximum market share of around 20%, followed by Incepta and Beximco at 9% and 8.35% respectively. Scott Emulsion is a vitamin supplement composed of cod liver oil, vitamin A, D, etc (Mph-bd. Cod liver oil). Other similar cod liver oil vitamin supplements in the Bangladesh market are, Cod oil by Rangs Pharmaceuticals, Cod liver oil by Drug International, Codcap by Incepta, Codliv SG by Pacific Pharmaceuticals, and Codvit by Opsonin Pharma Ltd (FiercePharma The top 10 pharma companies by 2013 revenue).

The industry analysis is done using the Porter’s five forces. The five forces are threat of new entrant, threat of substitute, bargaining power of buyers, bargaining power of suppliers, and rivalry among firms. Threat of New Entrant: The