Bausch and Lomb is engaged in the development and manufacturing of eye care products including contact lenses and lens care products. The company is owned by the private entity firm Warburg Pincus. Bausch and Lomb has a strong position in the market and is a one stop solution for the ophthalmology market.
Strength in the SWOT Analysis of Bausch and Lomb :
Strong market position: Bausch and Lomb has a strong market position in different segments of the ophthalmology market. This has driven the company’s strong growth. Also, this enhances the company’s potential to generate revenue.
Strong Global Presence: Bausch and Lomb operate in more than 100 countries. This insulates the company from demand fluctuation in a single market.
Present in the emerging nations: The company has present in the growing market in the emerging nations which are driving the company’s revenue and has great potential in the future.
Weakness in the SWOT Analysis of Bausch and Lomb :
Costly Products: Bausch and Lomb’s products are relatively costly especially when compared to local brands. This reduces the company’s potential to penetrate the market.
Product recalls hurt image: In August 2011, Bausch and Lomb voluntarily recalled some of its products which hurt the image of the company. The company should refrain from such controversies.
Opportunity in the SWOT Analysis of Bausch and Lomb :
Introduce Innovative Products: The company focuses on continuous and innovative product launches. They should further look forward to launching new products at regular interval to cater to the changing demand of the customer and increase the company’s brand visibility.
Strategic licensing agreements: Bausch and Lomb ventured into a partnership in 2009 for the distribution of the first femtosecond laser capable. Also, the company partnered with the UK-based UltraVision CLPL on marketing and selling KeraSoft contact lenses. Such partnerships have been successful and the company should look forward to such new partnerships.
The rapid growth of Urban Population: Urban Population in the world is growing especially in the emerging nations. Bausch and Lomb are already popular in the urban market and thus its an opportunity for growth for the company.
Threat in the SWOT Analysis of Bausch and Lomb :
Intense Competition: The global ophthalmic business is very competitive. The company competes with Vistakon, CIBA vision etc. Such competition affects the company’s market share.
Cost containment affects sales: The cost-containment initiatives of care organisations and some governments affect the sales of Bausch and Lomb negatively.
Lack of therapeutic diversification: Although Bausch and Lomb has a strong position in the ophthalmology market, it does not have business in other therapeutic areas unlike its competitor Alcon. This could affect the company’s long-term growth.