Abbott Laboratories is a healthcare, medical device manufacturing, and pharmaceutical American Multinational Corporation. Wallace Calvin Abbott founded the healthcare and pharmaceutical company in 1888. Today, we’ll discuss the SWOT analysis of Abbott Laboratories; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Abbott Laboratories
- Nutritional
- Diagnostics
- Medical devices
- Generic medicines
- ZonePerfect
- Glucerna
- Ensure
- BinaxNow
- Similac
Industry-focused area of Abbott Laboratories
- Pharmaceutical
- Medical devices
- Healthcare
Statistical facts and figures of Abbott Laboratories
- Annual revenue – 40.1 billion USD (2023)
- Net income – 5.72 billion USD (2023)
- Employees – 114,000
- Asset net worth – 73.2 billion USD (2023)
Competitors of Abbott Laboratories
- Heska Corporation
- Abaxis
- IDEXX Laboratories
- Abbvie
- Johnson & Johnson
- Agilent Technologies
- Medtronic
- Bruker Corporation
The SWOT analysis of Abbott Laboratories would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Abbott Laboratories SWOT analysis as business strategy analysis example company as follows;
Strengths of Abbott Laboratories
Some of the main internal strengths in the Abbott Laboratories SWOT analysis example company as business strategy analysis are as follows;
Large Portfolio
Abbott Laboratories has established a very large portfolio comprising of a wide range of products and services in various categories; medical devices, nutrition, healthcare, and diagnostics. The vast product portfolio helps the company to target various segments of the customer market. Some of the main products in various categories are as follows;
- Glucerna
- Juven
- Alinity
- Architect
- I NOW
- FreeStyle Libre
- FreeStyle Libre 2 Sensor
- CARDIOMEMS
- Gallant ICD
- CentriMag
- Neuromodulation devices
Exclusive License
The Abbot Molecular of Abbott Laboratories has earned a special and exclusive license to perform diagnostic tests in the US based on various new biomarkers. The exclusive license rights allow the company the exact cause of the disease or problem through specialized medical devices and equipment.
Research & Development
Abbott Laboratories invested approximately 2.89 billion USD in research and development in 2023. The pharmaceutical brand has established various research and development in various countries; the Indian Abbot Research facility is at the top. R&D plays a key role in the growth and development of the company, and it allows the company to find a cure for the new diseases.
Global Market Reach
Abbott Laboratories is operating its business and offering medicines, drugs, and medical devices in over 160 countries across the globe. The company has done it successfully with its dedicated distribution and sales network, and they’re providing the company’s products in new regions and markets worldwide.
Satisfied Customers
Abbott Laboratories has been serving medicines and drugs in the pharmaceutical industry for the past 140 years. The long time has allowed the company to establish a very large network of loyal customers and doctors, and they’re using and recommending the company’s medicines.
Marketing & Sponsorship
Abbott Laboratories employs media channels and medical reps for the marketing and promotion of its pharmaceutical drugs and medicines. Along with marketing campaigns, the company has also been sponsoring events like World Marathon Majors.
Weaknesses of Abbott Laboratories
Some of the main internal weaknesses in the Abbott Laboratories SWOT analysis example company as business strategy analysis are as follows;
Dependence on Few Products
It is no doubt Abbott Laboratories has a very large product portfolio. Out of these, there are very few top-selling products Similac, Humira, and others. The pharmaceutical brand is heavily relying on them for the overall sales and profitability of the company. However, it amplifies the riskiness of the company’s revenue stream and profitability.
Over-reliance on the US Market
The US market is the top-selling market of Abbott Laboratories, and the company’s market strength and market growth are very low in the other geographical areas and regions. If the market dynamic shifts away from the US market, then it would negatively impact the company’s business.
Controversy & Lawsuits
Abbott Laboratories has faced various lawsuits and legal controversies on different charges over the years. The pharmaceutical brand settled the lawsuits with different parties and paid millions of dollars of royalties, fines, and charges. It is negatively impacting the company’s reputation and costing the company’s profitability.
Opportunities for Abbott Laboratories
Some of the main available opportunities in the Abbott Laboratories SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
It is no doubt Abbott Laboratories is operating its business in over 160 countries across the world. However, the company’s market strength is very loose outside the US. The company should focus on strengthening its market position by launching various types of promotional campaigns and loyalty programs.
Product Portfolio Growth
Along with market expansion, Abbott Laboratories should also focus on the growth of its product portfolio. It means increasing the sale of all of its pharmaceutical products and medical devices, and it would help the company to reduce its reliance on the sale of a few products and stabilize its earnings and revenue stream.
Strategic Alliance
Abbott Laboratories should partner up and build strategic alliances with other pharmaceutical brands. The joint venture would help the company to share intellectual resources and improve its existing products. Overall, it would increase the company’s growth in the new regions and markets.
Medical Devices
The trend of using and wearing medical devices and monitoring health status has been increasing significantly. Abbott Laboratories should develop new smart devices for health-conscious customers like smartwatches, BP monitor watches, and others.
Threats to Abbott Laboratories
Some of the main potential threats in the Abbott Laboratories SWOT analysis example company as business strategy analysis are as follows;
Lawsuits
The legal issues and lawsuits are significantly damaging the company’s revenue and profitability; along with jeopardizing the company’s profitability. The company should comply with legal requirements and regulations to avoid legal issues.
Competition
The pharmaceutical industry has become highly competitive in recent years. There are multiple medicine and drug manufacturing companies and they offer the same products at different prices. Their market presence is decreasing the company’s market share and sales; the company should find a way to compete with them.
IPR
Abbott Laboratories has the IPR licenses and patents of hundreds of medicines; they require renewal after reaching their deadline. Other companies earn patents for the same product with different formulations, and it jeopardizes the company’s product sales to a great extent.
Conclusion: Abbott Laboratories SWOT Analysis Example Company |SWOT Analysis of Abbott Laboratories |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Abbott Laboratories; we have realized that Abbott Laboratories is the world’s leading pharmaceutical brand. If you are learning about Abbott Laboratories SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
