Potential Alternative Buyers/Competitor Research

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Conducting a buyer and competitor analysis is a robust strategy that calls for researching substantial competitors to gain insight into their products, sales, marketing tactics, strengths, and weaknesses. The analysis is encouraged as it ensures one learns the ins and outs of how one’s competition works while identifying potential opportunities where one can perform them. Carrying out competitor analysis also helps a company keep track of their competitors by allowing them to stay relevant in the upcoming marketplace. The analysis is also crucial as it allows an organization to collect and analyze information from multiple organizations within a similar industry. In so doing, the Organization can outline various strategies to keep it afloat and as a potential competitor when an opportunity arise. Similarly, conducting a competitive organizational analysis helps business managers tailor their schemes and draft contingency plans in case of a failed acquisition or merger. Therefore, this research aims at identifying alternative scenarios and drafting a contingency plan that will help in acquisition analysis and help in identifying alternative buyers in the event the current buyers back out. The research will identify and research the top three organizations majoring in medicine and pharmaceuticals that are viable for life science organizations in the Midwest.

North American Industry Classification System (NAICS) code for the Organization

Most life sciences companies have varying specialties but major in medicines and pharmaceuticals. It is important for the business team selected to assess potential buyers to examine a specific industry that aligns with the life science organization or otherwise attracts wrong competitors and potential buyers in case of mergers and acquisitions. In this case, the North American Industry Classification System (NAICS) code is instituted to assist business managers, and research teams in concentrating their specific and targeted marketing strategies on organizations in identical industries. This act helps ease their ability to identify the appropriate industry or Organization and potential buyers that would attract a successful acquisition process.

Life science organization in Midwest particularly deals with producing cancer treatment drugs. Therefore, the correct NAICS code is 325412, which is the most suitable when searching for organizations in similar industries. The code entails companies with specialties in pharmaceutical preparations and in-vivo diagnostic substances intended for external and internal intakes. According to the code, the pharmaceutical substance is in various forms, including suspensions, solutions, capsules, ointments, tablets, powders, and ampoules. In addition, using the NAICS code will help one filter companies based on what they produce and the industry category each fall. As a result, the code facilitates the research team to come up with several prospective buyers in a similar industry as the life science organization in Midwest.

Top Competitors in the NAICS Code 325412

The pharmaceutical preparation manufacturing sector comprises several companies that provide and improve consumer-based medicine for quality healthcare services. The code identified three companies: Johnson and Johnson (J &J), GlaxoSmithKline Holdings, and Novartis Pharmaceuticals Corp.

Company’s Name Description
Johnson & Johnson (J&J) It is one of the world’s largest and broad healthcare based company committed to improve access and affordability, promote a healthier community around the world. The company promote shape and defined well-being that seek to offer quality healthcare services in the consumer health, medical devices, pharmaceuticals and vision. Since its foundation over 130 years ago the organization has developed new ideas and pharmaceutical products that have transformed human healthcare.

Strategic vision: Believing in quality healthcare for every individual. The company thrives to improve adequate and affordable, institute healthier community, and connect people in living better through world-class innovations and patient management.

Primary products and services: Manufactures healthcare products and provides related services for the consumer,, pharmaceutical, and medical device markets such as first aid and medication supplies.

Overall market share: As of financial first quarter of 2022, the company had a 7.53% in overall market share.

Compound annual growth rate (CAGR): 5.5% for the past five years.

Novartis Pharmaceuticals Corp. Strategic vision: To become a trusted organization and leader in transforming lives of people in the medical practice. The company seek to challenge medical paradigms to explore more possibilities of curing diseases. As a leading global medical organization, the company uses innovative science and digital technological advancement in creating transformative treatment in the field of medical need.

Primary products and services: innovative medicines, biosimilar and generic pharmaceuticals, precision imaging and radio ligand therapy products.

Overall market share: 5.44%

CAGR: 1.2% for the past 5 years.

GlaxoSmithKline Holdings Strategic vision: To make a difference in the lives of millions every day through following of its core values that consider consumer as the most valuable asset.

Primary products and services: consumer health products, including Augmentin, Amoxicillin, Boostrix, Engerix B, Menitorix, Menveo, and Besero. It also provides consumers with oral health, pain relief, cold, flue and allergy vitamins, minerals and supplements.

Overall market share: 5%

CAGR: 9.48%


Criteria Used for Selecting Competitors

The selection of the potential competitor required several criteria. Industry classification was the first criteria. Conducting the competitor analysis helped identify and classify comparable companies and prospective buyers. Conducting research on an organizational operations field assists the analyst in recognizing similar companies. Moreover, organizations with similar capital structures and operating functions are easily comparable. For example, it is easy to identify business aspects’ deficits by comparing them in a table. In so doing, the criteria helped filter the organizations from the rest and pinpoint the three potential buyers.

It is also important to consider the organizational growth rate while detecting potential buyers or competitors. Organizations with higher growth rates are prospective in improving their growth. Such companies are known to be deploying technological advancements to boost their performance. Improved growth rate indicates improved operations towards attaining the organizational strategic vision. Therefore, an organization with a higher growth rate attracts potential buyers willing to invest in such companies by utilizing the acquisition rights of the organization.

Similarly, organizational profitability in terms of overall market share and compound annual growth rate (CAGR) proves companies’ ability to be prospective buyers or competitors of the life science organization. A company high higher overall profitability has the potential to propel life science organizations to their aspired levels. The profitability aspect indicates the organization’s ability, workforce, and valuation skills that seek to enhance competitive advantage in the market. According to Hadi (2018), a high-profit margin is a fundamental aspect of attracting investors. As a research team member to identify a potential buyer, I will ensure that all the criteria are considered through this competitor analysis research.

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