Last time we elaborated on the SWOT Analysis of one of the largest Pharmaceutical Companies in India, Abbott Laboratories. This time, we will tackle the SWOT Analysis of BD – Becton Dickinson in-depth.
BD – Becton Dickinson a global healthcare technology company is known for its advanced health services and solutions by developing innovative technology that helps both the clinical therapy for patients and clinical process for healthcare providers.
In its industry, BD has enjoyed great success. By utilizing digital marketing techniques, it can enhance its market position. Businesses can easily market themselves to their target audiences when the majority of people use digital media.
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Do you want to learn how Johnson & Johnson succeeded in the market? In this blog, we will be learning about the SWOT analysis of BD.
About BD
BD was established by Maxwell Becton and Fairleigh S. Dickinson in East Rutherford, New Jersey in 1897. It has its headquarters located in Franklin Lakes, New Jersey, the U.S. built between 1986 and 1992.
BD has a rank in the Fortune 500 list at position #177. BD is a global medical technology company that is advancing the world of health by enhancing medical discovery, diagnostics, and the delivery of care through medical devices, instrument systems, and reagents. BD commence its work in three segments i.e. BD Interventional, BD Medical and BD Life Sciences. BD leads in patient and healthcare worker safety and the technologies that enable medical research and clinical laboratories.
The company partners with organizations around the world to deal with a number of the foremost challenging global health issues. BD has quite 65,000 associates across 50 countries who work in close collaboration with consumers and partners to assist enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety, and expanding access to health.
| Founder | Maxwell Becton & Fairleigh S. Dickinson |
|---|---|
| Year Founded | 1897 |
| Origin | East Rutherford, New Jersey |
| No. of Employees | 75,000 |
| Company Type | Public |
| Market Cap | $77.326 Billion (2022) |
| Annual Revenue | $20.248 Billion (2021) |
| Net Income/ Profit | $2.002 Billion (2021) |
Products by BD
- Diagnostics Systems
- Drug Delivery System
- Interventional
- Medical
- Life Sciences
- Laboratory Automation
- Medication Management
- Medical-Surgical Systems
- Syringes and Needles
- Women’s Health and Cancer
Competitors of BD
The top 5 competitors of BD are:
- Terumo Medical Corporation
- Beckman Coulter Life Sciences…
- CooperSurgical
- Sysmex
- Abbott Laboratories
So as we got to know about the business of BD, now we will discuss the SWOT analysis of BD.
SWOT Analysis of BD
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like BCE (BD Canada Enterprises) to compare its business and performance to that of its competitors. It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of BD.
To better understand the SWOT analysis of BD, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of BD.
Strengths of BD
BD has numerous strengths that help it to thrive in the marketplace. Some of the strengths of BD are
- Diverse Revenue Models: BD has taken on a variety of businesses outside of the health device sector over the years. Through this, the company has developed revenue streams that aren’t dependent on Healthcare devices or Big Pharma.
- Organization Employees: At BD, the talent management of over 70,000 employees and their development of them make a significant contribution to success in the next generation of diagnostics and therapeutics.
- Strong Financial Record: For the fiscal year 2021, Becton Dickinson reported earnings of US$5.1 billion, with annual revenue of US$20.248 billion, an increase of 10.5% over the previous fiscal cycle.
- Ethics & Compliance: The company is strongly committed to following an ethics and compliance culture. Also, the company is awarded as 2021s best place to work for LGBTQ equality. All BD associates are responsible for reinforcing BD’s ethics and compliance culture and sustaining its reputation.
- Number of Acquisitions: BD is always in terms of several acquisitions like it acquired C.R. Bard in 2017, CareFusion in 2015 for a price of US$12.2 billion in cash and stock.
- Environmental Record: The company is listed under the top 100 companies in Newsweek’s 2009 and the EPA Fortune 500 list for greener environmental performance. The company is committed to providing global healthcare through environmental sustainability, social investing, inclusion and diversity.
Weaknesses of BD
Some of the weaknesses of BD that they can work upon are
- Loyalty Among Suppliers is Low: BD has a history of developing new technologies to drive down supply chain prices.
- Declining Market Share of BD with Increasing Revenues: Company growth is slower than that of the major medical technology company. BD will have to take a close look at the various trends within the Healthcare sector in this scenario and determine what it needs to do to drive its future growth.
- Gross & Operating Margins: Gross margin and operating margins, both of which are subject to improvement, and which may negatively impact BD’s financial statements in the future.
- Research & Development: Even though BD is spending more than the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their innovative products.
- Device Quality Control: BD’s quality control department has a lower budget than its competitors. This leads to inconsistency and the risk of quality degradation throughout the company’s many channels.
Opportunities for BD
A company can identify opportunities for growth, profits, and market share by identifying potential opportunities.
- Acquisitions: BD is famous for its enormous acquisitions and joint ventures with already established companies. Acquisitions like the 2017 C.R. Bard acquisition, CareFusion etc. and many more. BD should continue such acquisitions to increase its market position.
- Local Collaboration: BD can also find growth opportunities in international markets by partnering with local players. Despite having local expertise, BD can offer execution expertise and global processes.
- Telehealth: This sector covers the distribution of health services over the electronic media. Seeing potential in this sector BD has invested in Telehealth startups.
- US Economy: Rapid expansion of the economy as the US economy is improving faster than any other developed economy will provide BD with an opportunity to expand into the US market. BD already has the know-how to operate in the competitive US market.
- Technological Developments: In a multitude of industries, technology has considerable advantages. Operations can be automated to save money. Technology facilitates the collection of better client data and enhances marketing activities.
Threats to BD
Changing macroeconomic factors and changing consumer perceptions are potential threats to a business model. These threats can be managed, but cannot be controlled.
- Commoditization of the Product Segment: As the products in the healthcare medical technology industry become more commoditized, it is becoming increasingly difficult for BD and other players to compete.
- Competitors Catching Up with the Product Development: Despite this, BD is still leading in product innovation in the segment of medical technology. International and local competitors pose stiff competition to BD.
- Shortage of Skilled Human Resources: With high employee turnover and increased reliance on innovative solutions, the company name may face shortages of skilled human resources shortly.
- Controversies: The company has been accused of engaging in anti-competitive practices to prevent the distribution of needlestick injury syringes in the year 2004 due to which the company paid US$100 million to settle allegations. Several other controversies have reduced the image of BD in the market.
This ends our extensive SWOT analysis of BD. Let us conclude our learning below.
To Conclude
As we saw that BD is one of the successful medical device companies in the world which has a strong distribution network, low-cost structure, and strong financial position in the market.
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We hope this blog on the SWOT analysis of BD has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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