BEXIMCO

Foreign Market analysis

BEXIMCO Pharmaceutical LTD has been able to establish a very successful international
marketing network in Asia, Middle East and Africa. In 2001, BPL signed and agreement with
one of the leading distributors of Singapore with an objective to consolidate i9ts presence in
Singapore market. In Pakistan, BPL comes into an agreement with one of the leading local
companies to manufacture BPL brands locally and to market the same in Pakistan market. So, far
Beximco has market its presence in 22 countries. These countries are

US
Taiwan
Philippines
Hong Kong
Yemen
Singapore
Pakistan
Iran
Kenya
Myanmar ; etc

Rationale for exporting and targeted foreign market:

The finance minister lauded Beximco Pharmas initiatives for taking Bangladeshi medicines to
the world and for making significant contributions to the countrys remarkable progress in
healthcare. BEXIMCO hoped that with the commencement of pharmaceutical exports from
Bangladesh, business and cooperation between the two countries would continue to expand and
reach new heights in the coming days. As BEXIMCO deliver our first shipment of Carvedilol to
the US market, they begin a new era for the pharmaceutical industry in Bangladesh. They believe
their continued focus on building and strengthening the Groups presence in Western markets
will cement Bangladeshs position as a major exporting country. These initiatives are in line with
our aspirations to expand our reach by taking products to the world. As a leading exporter of
medicines, they always strive to capitalize on the generic drug opportunities in the world market.
They believe their competitive products, especially with specialized and differentiated generic
products, will help strengthen their presence in the US and other advanced markets.

Country Selection Process

In country selection we need to identify the cultures of our selected country and eliminated
country. But the information of eliminated countries details have discussed at why not export
part.
Culture
Culture has the vital role for expanding the business. Culture has included in everywhere. In
food, language, business, cross-border communication and so on depends on culture. The culture
of one country may not match with another country. If any company wanted to with do business
with other countries (it will be exporting, joint venturing, franchising etc.) have to know the
countries culture first. Because depends on culture how the country will accept my business. The
team of international business has to understand the expected countries culture. The information
about culture will get from secondary data. Like the people of England like to get a gift.

Country Evaluation
After country selection then evaluate the country through the countrys GDP, PPP, Disposable
income population etc. and the weights of the country also considered in-country evaluation. The
selective country is helpful or not. If helpful how it will be helpful is also considerable incountry evaluation point.

Table: 1 Indices used in country selection

Measure

1. Ease of profit
repatriation

2.

GDP growth rate

Indices
A component of the Economic
Freedom of the WorldIndex
called restrictions in foreign
capital market
exchange/index of capital
controls among 13 IMF
categories
Growth of real gross domestic
product

Sources

The Fraser Institute, 2016

http://www.freetheworld.com/

Global Economic Prospects,

http://data.worldbank.org/
World Bank World Development

3.

PPP

Purchasing power parity

Indicators 2016
http://data.worldbank.org/indicator/NY.G
DP.PCAP.PP.CD

4.

Government
Stability

5.

Gross national
Product

Political Stability, a governance

indicator which is a compilation
of perceptions of the quality of
governance of a large number of
enterprises,
citizens,
nongovernmental
Organizations, commercial risk
rating agencies and think tanks.
GNI defined the Income of the
countries people inside and
outside the country

The

global

Governance

economy

Worldwide

Research

Indicators

Dataset
http://www.theglobaleconomy.com/ranki
ngs/wb_political_stability/

Global Economic Purpose

http://data.worldbank.org/indicator/NY.G
NP.PCAP.PP.CD?view=map
Disposable income of global people

6.

Disposable Income

This things have to find out for

identify the ability of buying
another things after paying tax
and other expenses.

have

find

out

from

http://www.numbeo.com/cost-ofliving/country_price_rankings?
itemId=105

7.

Population

Population of the country as

much as big to sell the product
as much as easy

Retrieve the data from country meters

http://countrymeters.info/

The
8.

Inflation

Though purchasing power of the

countries people. How much
money he will spend for this
particular product

global

Governance

economy

Worldwide

Research

Indicators

Dataset
http://data.worldbank.org/indicator/FP.C
PI.TOTL.ZG?view=map

The cultures of our selected countries are following:

1. India: India holds a large number of populations. So, it is easy to gain profit from this
type of country The Indian pharmaceuticals market increased at a CAGR of 17.46 per
cent in 2015 from US$ 6 billion in 2005 and is expected to expand at a CAGR of 15.92
per cent to US$ 55 billion by 2020. Indias cost of production is significantly lower than
that of the US and almost half of that of Europe. It gives a competitive edge to India
over other
2. United States of America: The U.S. pharmaceutical market is the worlds most
important market. Together with Canada and Mexico, it represents the largest continental
pharma market worldwide. Total nominal medicine spending in the U.S. was around 425
billion U.S. dollars in 2015. In recent years, the three top therapy classes for which most
money was spent included oncology, diabetes, and autoimmune. These three areas alone
were worth over 110 billion U.S. dollars in 2015. In the same year, Gilead Sciences
Harvoni, a hepatitis C drug, was the best-selling drug in the U.S., generating some 14
billion U.S. dollars in revenue. Based on the number of prescriptions, generics represent
the top drugs. For example, Levothyroxine and Acetaminophen were prescribed a
combined 218 million times in 2015.

Why not China:

We all know that, China has big population. So, earning revenue from Chinas market through
selling product is quite difficult. The barrier of doing business of china are following.

Cultural barrier: Same case of china, without their native language they are not

interested to communicate with other countries people.

Financial and legal regulation: There are comprehensive regulatory requirements for
RMB/foreign currency conversions, trade settlements and bank borrowing in china. For
example intellectual property rights (IPR) protection is challenging and there are unique

systems for taxation, labor regulation, and dispute resolution.

Lack of publically available data:Thetask is always hard to find comprehensive and

financial market data and credit information for local companies in china.
Varying business practice: As part of a large, heavily populated and diverse country,
each Chinese province or city will have unique business practices and requirements to
market entry. (ANZ Business, 2016)

Why not Russia:

At first we have select four countries to exporting our product. But after group analyzing we
have decided that we export only two countries these are India and USA. We are not export other
two countries these are Russia and china. Because cultural barrier is the first problem in these
two countries. In Russia 81% people speak their mother language. Majority people dont speak
in English. So its a great barrier to communicate with them. And other things inflation rate of
Russia is very high, 15.5%. So, export to Russia is risky. Either we will make profit or going to
lose.

Legal Factors
Legal factors help for doing cross-border business. Their acceptance of foreign investors and
their products. And law about that product have comes under legal factors
Problems of Foreign Competition
i. Foreign competitors have more equipment, technology and plant
facilities than that of locally owned firms.

ii. Foreign competitors have their own local market so that they can absorb
some losses here.
iii. Foreign competitors get government help in some cases.
Prospects of Foreign Competition
i. Foreign competitions made the country firms more eligible to face
challenges that arose after the year 2005.
ii. Pharmaceuticals industries will become more efficient in producing
medicine which may save our lives.
iii. The local firms will not face any rigorous problem in foreign countries as
they are accustomed in competition with foreign firms..
Problems of Export
i. Unstable political situation is one of the vital reasons for not achieving
the expectation in export.
ii. Problems of port (both sea and air) hinder the timely export.
iii. Irresponsibility of customs officers is a regular phenomenon which
results in increase on the price and cost of medicine.
iv. Sometimes competition tends to follow unfair promotional activities.
v. Still now, the products of the pharmaceuticals industries of Bangladesh
are not world class.
Prospects of export
i. Competition is increasing the quality of medicinal products.
ii. For surviving in the future, competitive environment is necessary.
iii. Competition reduces monopolistic attitude of the firms. As a result, the
customers will be benefited by getting quality products
iv. Export brings foreign currencies for the country which is helpful for the
reserve of the country.
Problems of Customer Choices
i. One main problem is in producing rare drugs foreign companies are

ahead of us in terms of quality, experience and market share.

ii. Most of the time, to purchase the medicinal products is not depending on
the customer choice. Customers buy their product according to the
prescription of doctors.
Prospects of Customer Choices
i. By increasing quality, more customers as well as market share can be
absorbed.
ii. By producing rare drugs at home, the country can save its foreign
exchange.
iii. By extensive promotional activity, customer choice can be driven.

Key Assumption:
Each year patents on pharmaceutical products expire with annual sales worth billions of dollars.
Data monitor estimates that there are blockbuster drugs coming off-patent by 2007 which have
sales in excess of US $82 billion.
This will be one of the key factors which will help drive generic pharmaceutical growth over the
next decade. Beximco Pharma is seeking for position to take advantage of this growing generic
market by regularly introducing new products in its existing and new markets. Its low
manufacturing cost will provide a competitive edge over our global competitors in any
international generic pharmaceutical market.