Abbott Laboratories

    Abbott Laboratories SWOT & PESTLE

    • Report

    • ID: 525622
    • 30 Pages
    • October 2023
    • Region: North America
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    About Abbott Laboratories

    Abbott Laboratories is a global healthcare company that is dedicated to helping people live healthier lives through a diverse range of medical products, diagnostics, and nutritional products. Founded in 1888, by Dr. Wallace C. Abbott, it is headquartered in Abbott Park, Illinois, United States. Abbott has grown to become one of the largest and most respected companies in the healthcare industry. Abbott is dedicated to advancing global health and is present in over 150 countries employing over 99,000 people, as of 2023. Abbott offers a diverse range of products in Diabetes Care, Diagnostics, Nutrition, Vascular Care, and Pharmaceuticals to support health management and well-being. Some of its star products ranging in this spectrum are FreeStyle Libre, Alinity, Ensure, Xience Sierra, and Humira, offering innovative solutions in diabetes care, diagnostics, nutrition, cardiovascular interventions, and autoimmune conditions. It has been one of Fortune’s most admired companies since 1984, and sported the numero uno position in medical products from 2014-2019. In 2023, Abbott Laboratories is a top global health company, ranked fourth among biopharmaceutical companies based on market capitalization, while its spin-off company, AbbVie, is ranked 10th among global pharmaceutical companies on the basis of prescription sales. In 1985 the company witnessed a historical moment in attaining the approval of the first licensed test to identify the HIV in the blood which helped in securing the safety of the blood supply. By far this was one of the most prominent accomplishments and the earliest significant medical victory against the seemingly unstoppable threat. 

Abbott's USP or Unique Selling Proposition lies in being one of the top pharmaceutical companies across the world and the largest pharmaceutical company in India, which is the world's largest country by population. Abbott Laboratories mission is to “building life-changing technologies that keep heart healthy, nourish the body at every stage of life, help one feel and move better, and bring one information, medicines and breakthroughs to manage their health.” It envisions improving the lives of people around the world by providing innovative healthcare solutions that enable them to live healthier and fuller lives.

    Business Sector

    Healthcare

    Operating Geography

    USA, North America, Global

    Revenue

    US$43.7 billion– FY ending 31st December 2022 (year-on-year growth of 1.3%)
    US$43.07 billion – FY ending 31st December 2021

    SWOT

    SWOT Overview

    Abbott Laboratories, a global healthcare powerhouse, exhibits strength in its unwavering focus on high-potential fields such as personalized medicines and clinical diagnostics, aligning the company with the evolving healthcare landscape. With operations spanning 150 countries, Abbott has an extensive geographic reach, providing diverse revenue streams and resilience against market fluctuations. Furthermore, the company's market leadership across multiple healthcare sectors, including nutrition, medical devices, and diagnostics, reinforces its reputation and customer trust. Abbott's strong performance across its four major business segments underscores its operational excellence and adaptability. 
However, Abbott is fighting its own set of challenges. The company has grappled with controversies related to drug scandals, tarnishing its brand image and potentially impacting consumer trust. Additionally, quality issues at a baby formula plant in Michigan have raised concerns about the company's manufacturing processes and product quality. Yet, Abbott is well-positioned to tap into the growing market for personalized medicines and the rising demand for clinical diagnostics driven by infectious and chronic diseases. These emerging trends align with the company's strategic focus and provide avenues for growth. The company must also contend with threats, including risks associated with mergers and acquisitions, which can be financially and operationally complex. The rising use of technology in healthcare has made the industry more susceptible to cyberattacks, posing a significant threat to data security and patient confidentiality. By arresting its weaknesses and guarding against threats, Abbott Laboratories can sustain itself as a global leader in medical diagnostics through its life-changing technologies and products.

    SWOT Matrix for Abbott

    Strength

    Weakness
    1. Strong focus on high potential fields
    2. Broad geographic reach spanning 150 countries
    3. Operating systems designed for success
    4. Market leadership in multiple fields
    5. Strong performance by all four major business segments
    1. Controversies surrounding involvement in drug scandals, hurting brand image
    2. Quality issues in Michigan baby-formula plant

    Opportunity

    Threat
    1. Growing market for personalized medicines
    2. Rising demand for clinical diagnostics driven by infectious and chronic diseases
    3. Diversified business model of Abbott can drive growth going forward
    1. Risks associated with mergers and acquisitions
    2. Rising use of technology in healthcare has led to increased vulnerability to cyber-attacks

    Detailed SWOT Analysis of Abbott

    The detailed SWOT analysis for Abbott Laboratories is presented below:

    Strength

    1. Strong focus on high potential fields: The most important decisions made by the company are regarding what businesses to curate. The company chooses to compete in fields with the highest potential for ROI and breakthroughs in healthcare. This is how Abbott remains relevant and delivers greatest impact to customers and shareholders. The careful portfolio management has made the company more innovative and future-aligned than before. An example is its leadership in connected care, the most advanced medical technology today. More than 50% of the company’s sales are from products and businesses set up in recent years. Despite the pandemic, Abbott has reported an increase in total sales over the last 3 years. Abbott attributes the increase to introduction of new slew of products across various businesses as well as higher sales of the existing portfolio. Over the past 3 years, the company has experienced a 37% growth in sales and a 65% growth in adjusted earnings per share (EPS), reflecting a positive trend in its financial performance. In a highly competitive healthcare industry, this kind of strategic focus is important to succeed.

    Weakness

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    Opportunity

    This section is available only in the 'Complete Report' on purchase.

    Threat

    This section is available only in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Overview

    Abbott Laboratories, a global leader in the dynamic healthcare sector, has a commercial presence in 95 countries. Due to this it faces a complex external environment which can be well studied in a detailed PESTLE analysis of the company. Politically, the industry's significant lobbying efforts in the USA can influence healthcare policies and regulations, which may impact Abbott's operations. Additionally, palpable concerns regarding a potential US-China trade war can create uncertainty, particularly in the medical devices industry, where Abbott has a towering presence. The ongoing Russia-Ukraine conflict also introduces geopolitical risks that could affect the healthcare sector's global supply chain and operations. Abbott must also navigate through the economic challenges posed by fluctuating foreign exchange rates, which can impact its international revenue and profitability. The pandemic has led to reduced procedure volumes, affecting the healthcare industry as a whole. Furthermore, economic instability in Venezuela presents a financial risk for Abbott's operations in the region. Social factors like the rising popularity of generic drugs as a cost-effective solution for the aging population present both, opportunities and challenges for Abbott's pharmaceutical business. The company also played a role in addressing societal problems and the management of cardiovascular disease risks during the COVID-19 pandemic. Technologically, Abbott can leverage the growing use of artificial intelligence, IoT, and telemedicine to enhance its healthcare solutions. Furthermore, the application of 3D printing in healthcare presents innovative possibilities for the company. The US based healthcare major must comply with anti-trust laws in the American healthcare sector and adhere to consumer protection regulations, ensuring compliance with legal requirements. Sustainable, breakthrough solutions spanning the healthcare spectrum, are increasingly gaining traction, influencing Abbott's operations and product development to meet evolving environmental standards and expectations.

    PESTLE Matrix for Abbott

    Political

    Economic
    1. Healthcare/Pharmaceutical industry - the largest spender on lobbying in USA
    2. Fears of US-China trade war affecting the medical devices industry
    3. Effect of the Russia-Ukraine conflict on the healthcare sector
    1. Fluctuations in foreign exchange rates
    2. Reduced procedure volume due to the pandemic
    3. Poor economic conditions in Venezuela

    Social

    Technological
    1. Rising popularity of generic drugs as a solution for the aging demographic worldwide
    2. Tackling social problem to improve life
    3. Corona Virus pandemic posing rising concerns for management of CVD risks
    1. Growing use of artificial intelligence in healthcare
    2. IoT revolutionising the healthcare industry
    3. Telemedicine has seen an exceptional growth due to covid and rapid digitalisation
    4. 3D printing applications in healthcare

    Legal

    ENVIRONMENTAL
    1. Anti-trust laws in the American healthcare sector
    2. Consumer protection laws in healthcare
    1. Sustainability practices in healthcare

    Detailed PESTLE Analysis of Abbott

    The detailed PESTLE analysis for Abbott Laboratories is presented below:

    POLITICAL

    This section is available only in the 'Complete Report' on purchase.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase.

    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Sustainability practices in healthcare: The rising concern about the environment is making companies across sectors to focus on sustainability initiatives. Abbott has come up with many sustainability initiatives. The company has built a reputation as a responsible and sustainable corporate worldwide. Abbott has been named the Industry Leader in Health Care Equipment and Supplies on the Dow Jones Sustainability Index for 9 consecutive years 2013-2021 for strong performance in economic, environmental and social aspects. The company was also named in the top 100 companies by Corporate Responsibility magazine for 14 consecutive years during 2009-2022 and as the leading healthcare company in 2017. It is also one of the only 26 companies who have made this list every year since 2009. The company has reduced its CO2 emissions by 51% since 2010. It similarly has reduced its total water intake by 34% and total waste by 47% since 2010. The company also want to increase the access to healthcare for everyone and has a target of reaching 3 billion people by 2030.

    More Info

    Major Competitors

    • Johnson & Johnson,
    • Pfizer
    • Novartis
    • GSK
    • Merck
    • Novo Nordisk
    • Medtronic

    Major Brands

    • Similac
    • Pediasure
    • Pedialyte
    • Brufen
    • Alinity
    • AlinIQ
    • CardioMEMS
    • Klacid
    • Xience
    • Architect
    • Ensure
    • Freestyle
    • Burstdr Stimulation
    • i-Stat
    • MitraClip

    Table of Contents

    • 01 Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • 02 SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • 03 PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • 04 Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • 05 Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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