AbbVie is a pharmaceutical and medicine manufacturing American multinational corporation. It came into existence after separating from Abbott Laboratories in 2012. Today, we’ll discuss the SWOT analysis of AbbVie; 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 AbbVie
- Rinvoq
- Skyrizi
- Maviret
- Norvir
- Kaletra
- Zinbryta
- Venclexta
- Imbruvica
Industry-focused area of AbbVie
- Biopharmaceutical
Statistical facts and figures of AbbVie
- Annual revenue – 54.32 billion USD (2023)
- Net income – 4.873 billion USD (2023)
- Employees – 50,000
- Asset net worth – 134.7 billion USD (2023)
Competitors of AbbVie
- Roche Diagnostics
- Amgen
- LON: SPX
- GSK
- Abbot
- Merck
- BMS
- Pfizer
- NYSE: Abbv
- Johnson & Johnson
The SWOT analysis of AbbVie would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s AbbVie SWOT analysis as a business strategy analysis example company as follows;
Strengths of AbbVie
Some of the main internal strengths in the AbbVie SWOT analysis example company as business strategy analysis are as follows;
Research & Development
AbbVie allocated 7.7 billion USD on research and development in 2022; which is more than the annual revenue of many companies. In fact, R&D is the lifeline and growth of the pharmaceutical brand; they find the cure for diseases and medical issues. It allows them to gain a competitive edge in the market and take advantage of high sales by launching the pioneer medicine.
Large Portfolio
AbbVie has established a very large product portfolio comprising of wide range of pharmaceutical drugs and medicines for customers. They are like imbruvica, zinbryta, humira, and many others. However, the large product portfolio helps the company to target a wide range of customers with different medical issues and diseases.
Sustainability Initiative
AbbVie has made a strong commitment to decrease carbon emissions and reduce the negative impact on the environment; in order to keep up with the growing environmental sustainability trends. In fact, the pharmaceutical had a vision of decreasing the 25% carbon emission rate by 2025. It helps that the company has to shift its focus to alternative sources to keep its pharmaceutical production and manufacturing factories running.
Worldwide Market Reach
According to an estimate, AbbVie is operating a pharmaceutical business in over 175 countries across the world. The worldwide supply chain and distribution network helps the company strengthen its market, brand, and revenue position.
Strong Background
AbbVie has a very strong background and a rich history with Abbott Laboratories. It has allowed the company to immediately capture the global market share and stabilize its position after separating from Abbott Laboratories within a decade.
Weaknesses of AbbVie
Some of the main internal weaknesses in the AbbVie SWOT analysis example company as business strategy analysis are as follows;
Tax Avoidance controversy
US Senate Finance Committee claimed that the company has been buying its own stock to avoid taxes. Such types of controversies and practices are jeopardizing the company’s reputation and could potentially file a lawsuit for millions of dollars.
Over-reliance on few products
There is no doubt that AbbVie has established a very large product portfolio, but the pharmaceutical brand is heavily relying on the sale of a few products as its main source of revenue. Heavy reliance on the sale of a few products is not a good marketing and business strategy, and it is making the company’s profitability vulnerable.
High Debt
The debt-to-equity ratio of AbbVie is very high, and it means that the pharmaceutical brand is heavily relying on debt to finance its research project. It is further negatively impacting the company’s reputation and profitability.
Opportunities for AbbVie
Some of the main available opportunities in the AbbVie SWOT analysis example company as business strategy analysis are as follows;
Market expansion
The global market and emerging developing markets hold significant growth potential. AbbVie should expand its market and enter new geographical regions and markets across the world. It would help the company to increase its sales, revenue, and profitability.
Portfolio growth
In order to decrease its reliance on the sale of a few medicines and drugs, AbbVie should amplify the growth of its product portfolio by launching new products, medicines, and drugs for new types of diseases with new formulations.
Strategic alliance
Speaking of marketing expansion, AbbVie should develop strategic alliances with new pharmaceutical distributors and companies. The collective contribution effort would help the company to cover more ground, enter new markets, and target new segments of the customer market.
Technological development
AbbVie should invest capital resources in the latest technological tools, equipment, and production approaches. The latest technological methods and tools help the company achieve efficiency with its production methods, reduce waste, and improve the efficient utilization of resources.
Threats to AbbVie
Some of the main potential threats in the AbbVie SWOT analysis example company as business strategy analysis are as follows;
Competitors
The pharmaceutical industry has become highly competitive over the years. There are multiple pharmaceutical brands operating their business world and they target the same patient market and doctors. AbbVie should add some unique value to its products to gain a competitive edge.
Legal issues
The lawsuits and legal controversies are costing the pharmaceutical brand AbbVie millions of dollars of lawsuit. The company should engage in ethical practices to avoid lawsuits and legal troubles; it would benefit the company in multiple ways.
Conclusion: AbbVie SWOT Analysis Example Company |SWOT Analysis of AbbVie |Business Strategy Analysis
After an in-depth study of the SWOT analysis of AbbVie; we have realized that AbbVie is the world’s leading pharmaceutical brand. If you are learning about AbbVie’s 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.
