Parkin Laboratories Harvard Case Solution & Analysis


The company was unable to manage its expenses after 2010 which held the company with lowerprofits in 2011 and 2012. Although the growth rate was better in 2013 but Parkin laboratories were not performing up to the level as it has performed in 2010. Parkin’s was facing low growth rate because of its high expenditures on sales and operating activities.


Government policies could be a great potential threat for the Parkin laboratories, for which the company needs to prepare a contingency plan that could accommodate company’s profitability in a positive way. In the current scenario Drug Price Control policy has made the company’s financial position in jeopardy.


Parkin laboratories have an opportunity to capture huge market share through its well-equipped and efficient work force. The company can also increase its net income by reducing its operational expenses and cost of sales, here the company can go for the bulk production that will increases its volumetric sales and allow it to enjoy economies of scales.

Through SWOT Analysis Company’sinternal evaluation reveals that the company poses all the expertise that itneedsfor a highergrowth, whereas the company must focus on its potential threats because it is necessary to plan for the potential market risk similar to the current threat faced by the company that has enormously hurt its sales, which also resulted in low organizational performance. Hence the SWOT analysis of Parkin laboratories highly recommend them to pay attention to its external evaluation factors that are its threats and opportunities.

Market size & growth

An Indian pharmaceutical company is growing rapidly with a double digit growth rate that shows a great sign of potential expansion in this industry. The average growth rate figures shown by the industry is 15% during its five year observationperiod since 2009.It is expected that Indian pharmacy industry possesses huge potential forthdevelopment and growth which will expand the industry more than five times as it was in 2009 till 2020. Factors that are contributing to the pharmaceutical industry’s expansion are:

  • Low growth penetration
  • Rising middle class
  • Increase spending on health care infrastructure
  • Greater acceptance of medical insurance
  • Drift in demographic pattern
  • Rise in chronic disease

Parkinlaboratories must take advantage of all these factors and should work on the development of their own market share that would definitely come from the expended middle class health care needs. Although government policy has shaped the pricing strategy of all pharmaceutical companies and this has made the market competition more intense,

Parkin laboratories are penetrating their products in the market by reducing their price and concentrating on the effectiveness of their sales force through which they will capture a substantial amount of market share.

4Ps analysis:


The company is having a vast product line that is highly contributing towards its exceptional financial performance. The company’s product line consist of about 80 kindsof Medicare products, these include antibiotic, antifungal, gastrointestinal drugs, ant diabeticand anthelminticproducts, dermal and cardiovascular drugs.


The company had initially kept the price at premium levels, but now it is focusing on price penetration strategy. The company is doing this to capture the largest market share through which it will increase Parkin’soverall sales, which in turn will increase Company’s profitability and performance.


The company will promote its products through its CSR activities and health care campaigns.

In the pharmaceutical industry, medicalrepresentatives play a vital role in the promotion of the products. Medical representative. For that company highly concentrates on its distribution network along with a continuous market research and development.


The company is having 35 remote areas from where they control its distribution channels. The company possessesmore than 2500retailers that distributeParkin’sproducts to its end customer.


All pharmaceutical companies are competing with each other on the efficiency and effectiveness of their distribution networks, research and development, and quality of their products. Companies are producing more to increase their volumetric sales and reducing cost of sales. On the arrival of (DPCO) government policy pharmaceutical companies get involved in the battle of hiring more and more medical representatives that will effectively market their products to the concerned doctors and paramedical staff. This has also increased aggressive drug promotion to the physician. So that they will prescribe more drugsof the same company and the drug penetrates in the market through them.

Key Success Factors

1)      Initially the company was selling its products at premium prices becauseof thefact that they are providing high quality products in the market thecompany was selling their product at premium prices, which in turn made the company able to enjoy high profits andresult in high company’s performance.

2)     Effective sales force highly contributes as a key success factor in the company’s profitability.......................................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.