Implementation of Porter Dimond Theory in Beximco Pharmaceutical Industry in Bangladesh

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Report On “Implementation of Porter Diamond theory in Beximco Pharmaceuticals Ltd” Course Title: International Business Course Code: BUS-302 Semester: Fall’12 PREPARED FOR: Gouranga Chandra Debnath Senior LECTURER, Department of Business Administration FACULTY OF BUSINESS & ECONOMICS (DIU) PREPARED BY: Esteak Ahmed ID: 091-11-809 Contents Chapter 1 2 Introduction 2 Background of the Report: 2 1.5 Overview of the Porter Diamond Theory: 4 Chapter 2 6 2.2 Firm Structure, Strategy, and Rivalry 6 2.3 Demand condition 8 2.4 Factors of Endowments: (both basic and advance) 10 2.5 Related and supporting industry: 12 2.7 Overall analysis of the company position based on porter’s diamond: 13…show more content…
Porter and his team looked at 100 industries of 10 nations. Like the work of new trade theorists, Porters work was driven by a belief that the existing theories of international theory told the half of the story. For Porter the essential task was to explain why a nation achieves international success in a particular industry. Porter argues that four broad attributes promote or impede the creation of competitive advantage. These attributes are: * Factor of Endowments * Demand Condition * Relating and Supportive Industries. * Firm strategy, structure, and rivalry. Porter maintains two additional variables that can influence international business: * Government * Chance 1.6 Overview of the Pharmaceutical Industry in Bangladesh: Pharmaceutical sector is technologically the most developed manufacturing industries in Bangladesh and the third largest industry in terms of contribution to government’s revenue. The industry contributes about 1% of the total GDP. There are about 250 licensed pharmaceutical manufacturers in the country; however, currently a little over 100 companies are in operation. It is highly concentrated as top 20 companies produce 85% of the revenue. According to IMS, a US-based market research firm, the retail market size is estimated to be around BDT 84 billion as on 2011. Bangladesh pharmaceutical companied focus primarily on branded generic final

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