1. About Square Pharmaceuticals ltd: Today symbolizes a name - a state of mind.

But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958,it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985and is now on its way to becoming a high performance global player. SQUARE Pharmaceuticals Ltd. (SQUARE) is a major pharmaceutical company in Bangladesh that carries out the manufacture of branded and generic pharmaceutical products, medicines and other ethical drugs for the treatment of CNS, cardiovascular, respiratory, gastrointestinal and orthopedic conditions, besides vitamins, antibiotics, anti-fungals and hormones, among others. Its product portfolio includes pharmaceutical products (branded and generic), AgroVet products and Pesticides, and Herbal medicines and Nutraceuticals. The company owns and operates formulation facilities and a PET Bottle Unit. The formulation facilities include Pabna Unit (includes animal health unit and active pharmaceutical ingredients (API) unit) and Dhaka Unit (includes cephalosporins unit, metered dose inhaler (MDI) unit, insulin unit, and small volume parenteral & ophthalmic unit). It has a PET bottle unit with a capacity of 5,000 pieces/hour. The company exports its products to four major markets, namely, Europe, Asia, Africa, Central and South America. Currently, the company has 900 product approvals for Bangladesh market and 700 product approvals for export markets. The company operates its business through affiliates and subsidiaries, which include Square Cephalosporins Ltd., Square Multi Fabrics Ltd., Square Biotechs Ltd., Square Formulation Ltd., and Square Knit Fabrics Ltd.. SQUARE is headquartered in Dhaka, Bangladesh. GlobalDatas Square Pharmaceuticals Ltd.Square PharmaceuticalsLtd.(SQUARE:BD)

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Mission

Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Vision

We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization. Objective

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Our objectives are to conduct transparent business operation based on market mechanism within the legal & social framework with aims to attain the mission reflected by our vision. 2. Industry Analysis It is a vital part of the decision making process in business. Industry Analysis helps investor to take decision. Industry Analysis also helps entrepreneurs to ironout the wrinkles in their business plans.Michael Porter has identified five forces that are widely used to assets the structure of anyindustry. Porters five forces are: 1. Rivalry among existing firms 2. Threat of new entrants 3. Threat of substitutes 4. Bargaining power of buyers 5. Bargaining power of Suppliers 2.1 Rivalry among existing firms 2.1.1 Industry Growth rate SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 11.46 Billion (US$163.71 million) with about 16.43% market share (April 2009 March 2010) having agrowth rate of about 16.72%.

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2.1.2 Concentration and Balance Competitors The number of firms in an industry and their relative sizes determine the degree of concentration. Lots of similar size and strong competitor exist in the market and price competition is likely to be harsh. So square pharma product price is competitive. Square pharma is growing company; the competition is low 2.1.3 Degree of differentiation and switching cost Product differentiation is not the driver, cost competitiveness is. However, companies like Square pharma has created big brands in over the years, which act as product differentiation tools. This will enhance over the long term, as product patents come into play from 2005. 2.1.4 Excess Capacity and Exit barrier It is quit impractical for square pharma or other firms to exit from this industry because of they can not use those machineries in other purpose. Also here some rules and regulation exist no one can not easily exist from this industry. 2.2 Threat of new entrants Pharma industry is one of the most easily accessible industries for an entrepreneur in Bangladesh. The capital requirement for the industry is very low, creating a regional distribution network is easy, since the point of sales is restricted in this industry in Bangladesh. 2.2.1 Economies of scale

Square pharma can easily produce based on economies of scale but it is quite difficult to new entrants for produce based on economies of scale

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2.2.2

First mover advantage

It was established in 1958 and converted into a public limited company in 1991.First mover advantage is part of the standard lore of the I-Cubed Economy. It means that the first company into a market generally wins. 2.2.3 Access to channels of distribution and relationship

The Square pharma is a large pharmaceutical company in our country so they have large distribution channel and good relationship with the retailers.

Distribution Channel at a Glance

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2.3 Threat of substitute Products This is one of the great advantages of the pharma industry. Whatever happens, demand for pharma products continues and the industry thrives. One of the key reasons for high competitiveness in the industry is that as an on going concern, pharma industry seems to have an infinite future. However, in recent times, the advances made in the field of biotechnology, can prove to be a threat to the synthetic pharma industry. 2.4 Bargaining power of buyers The unique feature of pharma industry is that the end user of the product is different from the influencer (read doctor). The consumer has no choice but to buy what doctor says. However, when we look at the buyer's power, we look at the influence they have on the prices of the product. In pharma industry, the buyers are scattered and they as such does not wield much power in the pricing of the products. However, government with its policies, plays an important role in regulating pricing through the NPPA (National Pharmaceutical Pricing Authority) 2.4.1 Price Sensitivity Square pharma is produced the pharmaceutical products which are undifferentiated product and there are few switching cost. 2.4.2 Relative Bargaining Power Two factors related to the relative bargaining power Number of buyer The buyers bargaining power is determined by the number of buyer relative to the number of suppliers.

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 Volume per buyer It is determined by volume of purchase by single buyer. The number of buyer of Squre pharma is a single buyer with several alternative suppliers 2.5 Bargaining power of Suppliers The pharma industry depends upon several organic chemicals. The chemical industry is again very competitive and fragmented. The chemicals used in the pharma industry are largely a commodity. The suppliers have very low bargaining power and the companies in the pharma industrycan switch from their suppliers without incurring a very high cost. However, what can happen is that the supplier can go for forward integration to become a pharma company. Companies like Orchid Chemicals and Sashun Chemicals were basically chemical companies, who turned themselves into pharmaceutical companies. In case of Squarepharma there is low bargaining powers of suppliers. 3. History & Growth Chronology Since Inception 1958 : Debut of SQUARE Pharma as a Partnership Firm. 1964 : Converted into a Private Limited Company. 1974 : Technical Collaboration with Janssen Pharmaceuticals, Belgium, a subsidiary of Johnson and Johnson International, USA. 1982 : Licensing Agreement signed with F. Hoffman-La Roche & Co Ltd., Switzerland.

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1985 : Achieved market-leadership in the pharmaceutical market of Bangladesh among all national and multinational companies. 1987 : Pioneer in pharmaceutical export from Bangladesh. 1991 : Converted into a Public Limited Company 1994 : Initial Public Offering of shares of SQUARE Pharmaceuticals Ltd. 1995 : Chemical Division of SQUARE Pharmaceuticals Ltd. starts production of Active Pharmaceutical Ingredients (API). 1997 : Won the National Export trophy for exporting pharmaceuticals. 1998 : Agro-chemicals & Veterinary Products division of SQUARE Pharmaceuticals starts its operation. 2001 : US FDA/UK MCA standard new pharmaceutical factory goes into operation built under the supervision of Bovis Lend Lease, UK. 2004 : SQUARE enlisted as UNICEF's global supplier. 2005 : New State-of-the-Art SQUARE Cephalosporins Ltd. goes into operation; built under the supervision of TELSTAR S.A. of Spain as per US FDA/ UK MHRA requirements. 2007 : SQUARE Pharmaceuticals Ltd., Dhaka Unit gets the UK MHRA approval. 2009 : Starts manufacturing of insulin maintaining quality standards of US FDA & UK MHRA. Dedicated hormone & steroid products manufacturing facility complying with the current Good Manufacturing Practice (cGMP) of WHO, US FDA & UK MHRA starts operation.
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2012 : SQUARE Pharmaceuticals Ltd., Dhaka Unit and SQUARE Cephalosporins Ltd. get the Therapeutic Goods Administration(TGA) of Australia approval. 4. Qualitative analysis (SWOT analysis) The following SWOT analysis captures the main strengths and weaknesses within the company, and describes the opportunities and threats of the company. 4.1 Streanths A strong supply chain helps Square pharmaceuticals ltd obtain the right resources from suppliers and delivery the right product to customers in a timely manner "Supply Chain (Square pharmaceuticals ltd)" has a significant impact, so an analyst should put more weight into it. "Supply Chain (Square pharmaceuticals ltd)" will have a long-term positive impact on the this entity, which adds to its value. Economies of scale is the cost advantages that Square pharmaceuticals ltd obtains due to size. The greater the volume, the greater the advantages Lower costs lead to higher profits for Square pharmaceuticals ltd. A low cost leader can undercut rivals on price Unique products help distinguish Square pharmaceuticals ltd from competitors. Square pharmaceuticals ltd can charge higher prices for their products, because consumers cant get those products elsewhere. Superior technology allows Square pharmaceuticals ltd to better meet the needs of their customers in ways that competitors cant imitate When given a choice, customers are loyal to Square pharmaceuticals ltd. Instead of targeting all customers, Square pharmaceuticals ltd only needs to target new customers in order to grow their business.

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A strong brand name is a major strength of Square pharmaceuticals ltd. This gives Square pharmaceuticals ltd the ability to charge higher prices for their products because consumers place additional value in the brand Highly experienced Senior Executives some of whom has local and international significant pharmaceutical literature. Efficient, skilled, experienced and dedicated staff members Large customer Base and product development capabilities and outstanding professionalservice Resources are available in Bangladesh Square pharma is able to make benchmarking medicines Increasing presence in the market Regulatory performance is strong and positive Employee mobility is lower than that of its rival.

4.2 Weakness Non-availability of high technology Everything is not organized. Time consuming decision making process Incorrect method for collecting resources and inventory management Lack of asset management and debt. Minimum profit in comparison with others.

4.3 Opportunities Government Support Banking and information technology

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Credit line with well known foreign bank can gear up its foreign exchange business. Entering in new arena product helps to grow customers' confidence. Opportunity to take market share away from rivals by offering new innovative product or services. Opportunity to enter into the global market

4.4 Threats Hiking price of raw materials: More and more factories, especially small ones, are facing closure due to price hike of raw materials. It will be a great threat for us. Inadequate Power supply: The industry sources also blamed lack of adequate power supply for making the industry more vulnerable. We have to face the same problem here and for this many industries are shutting down now days. Mergers and Acquisition Frequent Currency Devaluation Competitors are much in pharmaceutical industries Competitors are offering innovative new product and services regularly. 6. What is Business level strategy? For square pharmaceteucals ltd.Business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product market. This means that business level strategy indicates the choices the firm has made about how it intends to compete in individual product markets. The

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choices are important as there is an established link between a firms strategies and its long term performance. We believe those are absolutely necessary to improve our competitive position. Every firm form and use a business level strategy. A firm competing in a single product market area in a single geographic location does not need a corporate level strategy to deal with product diversity or an international strategy to deal with geographic diversity. A diversified firm will used one of the corporate level strategies as well as choose a separate business level strategy for each product market area in which the company competes. This means that business level strategy is the core strategy the strategy that the firm forms to describe how it intends to compete in a product market. Customers are the foundation of successful business level strategies and should never be taken for granted. Information about customer that is relevant to choosing a business level strategy. In terms of customers when selecting a business level strategy the firm determines the following terms, 1. Who will be served? 2. What needs those target customers have that it will satisfy. 3. How those needs will be satisfied? Selecting customers and deciding which of their needs the firm will try to satisfy as well as how it will do so, are challenging tasks. Global competition, which has created many attractive options for customers, is one reason for this. In the current competitive environment effective global competitor have became adept at identifying the needs of customers in different cultures and geographic regions as well as learning how to quickly and successfully adapt the functionality of the firms good or service to meet those needs.

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Descriptions of the purpose of business level strategies and of the five business level strategies follow the discussion of customers. The five Generic strategies are as follows, 1. Cost leadership. 2. Differentiation. 3. Focus cost leadership. 4. Focus differentiation. 5. Integrated cost leadership/differentiation. 6. Spin price 5.1 SPL follows cost leadership strategies: Above of these strategies we find that square pharmaceuticals follows cost leadership strategies. Because cost leadership strategy is an integrated set of actions taken to produce goods or services with features that are acceptable to customer at the lowest cost, relative to that of competitors. Firms using the cost leadership strategy sell no-frills, standardized goods or services to the industrys most typical customers. Cost leaders goods and services must have competitive levels of differentiation in term of features that create value for customers. Indeed emphasizing cost reductions while ignoring competitive levels of differentiation is ineffective. At the extreme, concentrating only on reducing costs could find the firm very efficiently producing products that no customer wants to purchase. Cost leaders also carefully examine all support activities to find additional sources of potential cost reductions. Developing new systems for finding the optimal combination of low cost and acceptable quality in the raw materials required to produce the firms goods.

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5.2 SPL follows Business- Level Strategies: The main concepts of Business-Level Strategies are based on three (3) criteria and these are: Cost leadership: Cost leadership based attaining, then using the lowest total cost basis as a competitive advantage. On the above, we are discussing how square pharmaceuticals using their cost leadership strategy. Differentiation: Differentiation refers to the using product features or services to distinguish the firms offering from its competitors. In this regard square pharmaceutical follows these rules properly. Square pharmaceuticals maintains their performance on every side such as,

Packaging label with price Equal Quantity Comfortable Price Product Advertising High qualifiedly product etc

Market niche focus: Market niche focuses Concentrating competitively on a specific market segment. In this regard square pharmaceuticals achieve a good reputation on this sector such as medicine sector. It is achieving their goal and customer reputation by their medicine together. 5.3 SPL follows functional-level strategies: Functional strategy concerns the managerial game plan for running a major functional activity or process within a business- Research and development, production, marketing, customer service,
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distribution, finance, Human resources, and so on; a business needs as many functional strategies as it has major activities. In this regard square pharmaceutical maintains fully their performance such as square pharmaceuticals products are fully high qualified without any doubt. Their marketing strategy is so nice. They collect their raw materials from U.S.A, India, and Germany and so on. Those are highly qualified. Every product of square pharmaceuticals is examined by the expert researcher and trying to make better qualified product. 5.4 SPL follows Global-level Strategies: Global-level strategies focus Multi-domestic, International, Global and Transnational activities. In this regard Square pharmaceuticals are not maintained above features. 5.5 SPL follows Corporate-level Strategies: Corporate strategy is the overall managerial game plan for a diversified company; it extends company wide- an umbrella overall a diversified companys business. Corporate strategy consists of the moves made to establish business positions in different industries and the approaches used to manage the companys group of business- such as Vertical integration, Diversification, Strategic alliances, Acquisitions, New ventures, Business portfolio and restructuring. In this regard Square pharmaceuticals maintain some of the features and these are Diversification, strategic alliance and business portfolio- Now square diversified their product consecutively such as square Radhuni masala, square soap, and square jhal chanachur As well as square already entered stock market and lastly square creates a big hospital to give the service to the people. So overall we can say that square pharmaceutical follows above features.

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5.6 SPL follows multinational strategies: On the above discussion we can say that square pharmaceuticals properly maintain multinational strategies. Square pharma diversified various products in the market; They are exporting their products from one country to another country. Now they are trying to enter in the foreign marker with their product. 5.7 SPL follows Information technology Strategies: Square pharma always give priority on this strategy. They are always trying to provide good (product& service) to their customers. If any well information helps to make good product or service, than they are achieving it. For this reason they are accept well information from domestic and abroad expert peoples. 6. Top Ten Brands of SPL The top ten brands of SPL in September, 2012 and their market Growth are given below: Table 3: Top Ten Brands of SPL (Source: IMS (3rd Quarter) 2012

Rank. 1 2 3 4 5 6 7 8 9 10
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Brand Name Seclo Neotack Cef-3 Ciprocin Zimax Ceftron Lebac Ace Ceevit Entacyd plus

Market Growth (%) 31.17 6.1 23.92 5.32 49.83 38.33 11.8 31.57 7.68 8.05

7. Top ten Pharmaceteucals Company in Bd There are 276 small, medium and large local and multinational pharmaceutical companies operating in Bangladesh. Of the companies, the top ten companies take up nearly 70 percent of the total market, according to an IMS survey conducted in 2010.

RANK 1 2 3 4 5 6 7 8 9 10

COMPANY SQUARE INCEPTA PHARMA BEXIMCO ESKAYEF OPSONIN PHARMA RENATA ACME A.C.I ARISTOPHARMA DRUG INTERNATIONAL

ALUE (Cr. Taka) 1,156.15 527.31 464.99 297.48 293.02 282.21 278.83 255.14 244.37 239.34

Growth (%) 13.36 31.09 19.36 24.9 23.65 30.75 7.8 6.48 13.59 34.24

According to market share percentage, SPL is also the leader by a high margin. The graphical representation of SPLs position in market and also description of some of SPLs closest competitors is as showed on the next page,
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8. BCG Matrix

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Stars (=high growth, high market share) From the graph we can see as a leader in the pharmaceuticals industry square is in the leader position .Large amounts of cash and are leaders in the business so they should also generate large amounts of cash. The three why square is the leader Square is defined by having high market share in a growing market, they are leader. Square is the leader in the business but still need a lot of support for promotion a placement. If market share is kept, it is likely to grow into cash cows.

Cash Cows (=low growth, high market share) Profits and cash generation should be high, and because of the low growth, investments needed should be low. In the future the company may be in this position, which applies Cash cows are in a position of high market share in a mature market, square will here in near future. If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. Because of the low growth, promotion and placement investments are low. Investments into supporting infrastructure can improve efficiency and increase cash flow. Cash cows are the products that businesses strive for.

In near future square may not be in position where they consider themselves as question mark and dog stages, so those two are not very important now. 9. Conclution Pharmaceutical is the second largest revenue generating industry in Bangladesh, and the country looks well set to merge as a global hub for quality medicines. A new era has begun for Bangladesh pharmaceutical sector with the TRIPs agreement from 2005 and will continue up to 2016. These eleven years will be very crucial and important for the pharmaceutical industry. Investors and entrepreneurs may engage in and benefit from the potentials. Government support is also very important for the growth and expansion of the sector at this stage. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer researc

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products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs.

10. Refferences:

1. www.scribd.com/doc/100579405/Report-on-Square-Pharma 2. www.bizstudyportal.com/.../b/i/z/.../46FIN2012PFIN0915004543.pdf 3. www.squarepharma.com.bd/ 4. Annual report 2012,2013, 5. www.studymode.com/.../swot-analysis-on-bangladeshi-company-square-. 6. www.scribd.com/.../Porters-five-force-model-and-Ratios-analysis-of-SQ... 7. www.studymode.com/.../bcg-matrix-of-square-pharmaceuticals-compan 8. www.wikipedia.com 9. www.papercamp.com/group/porter's-five-point...pharmaceutical.../page-.. 10. www.wikiwealth.com/swot-analysis:square-pharmaceuticals-ltd

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