Glaxo Smithkline

Topics: GlaxoSmithKline, Pharmaceutical industry, Pharmacology Pages: 7 (1553 words) Published: December 30, 2011
Table of Contents
1.0 Introduction2
1.1 Objectives2
1.2 Overview of the Organization2
2.0 Market Share and Competition in the industry3
2.1 Market Share3
2.2 Portfolio4
2.3 Competition5
3.0 Industry Market Structure7
4.0 Conclusion8
5.0 References9

1.0 Introduction

1.1 Objectives

This assignment was prepared to understand and present an overview of GlaxoSmithKline (GSK), in the pharmaceutical industry and its competition against its distributors in Sri Lanka and also its market structure in view of its market structure at present in the industry.

1.2 Overview of the Organization
GlaxoSmithKline, with operations worldwide is an acclaimed universal healthcare group engaged in the creation, discovery, development, manufacture and marketing of pharmaceutical and consumer health-related products. With an estimated world market share of 8.15% GSK is ranked as one of the top five pharmaceutical companies in the global marketplace.

Glaxo Laboratories (Ceylon) Limited founded in 1956, achieved number 01 market position by 1986 among private pharmaceutical companies, currently operates as two separate SBU’s Glaxo Welcome and SmithKline Beecham since the merger of the two companies in 2001. Employing around 500 staff GSK is one of the most admired companies in Sri Lanka committed to major scale research and development working towards the betterment of the society.

GSK has a challenging and inspiring mission “To be the most admired company in Sri Lanka making available innovative, valuable / accessible solutions in preventing & treating diseases and thereby to make people feel better and live longer”

2.0 Market Share and Competition in the industry

2.1 Market Share

GSK is the indisputable market leader in the private sector of the pharmaceutical industry with a market share of 7.13% as per the latest IMS survey in the local market. The following diagram shows the market share available in each sector. Total Pharmaceutical Market

Dispensing (1%)
State (30%)
Private Sector (70%)

Retail Chemists
Private Hospitals

Source: IMS Q1 2009
Being ranked world’s 4th largest pharmaceutical company according to global sales of prescription drugs, GSK have set out three new strategic priorities that aim to increase growth, reduce risk and improve long-term financial performance. Sri Lanka’s pharmaceutical sector has shown a 17.3% growth in recent years with a market worth over US$ 254 Million with the private sector controlling over 70% of the market share at a value of US $ 177 Million, State Sector and dispensing controlling the remaining 30% valued at an approximate of US$ 76 Million. Private sector is controlled by Private Hospitals valued at US $ 26.5M (15%) and Retail Chemist US$ 150.4 M (85%). GSK is currently at the second position with a Market Share of 8.15 % at a growth rate of 10.9% in the local market. Competitive Context

8.85% Market Share(MAT)
Growth 37%

8.15. % Market Share (MAT)
Growth 10.9%

5% Market Share (MAT)
Growth 13%

Sun Pharma
3.14% Market Share (MAT)
Growth 20.14%

3% Market Share
Growth 20.9%

Figure 1.1
Source - GSK SL Sales Report

2.2 Portfolio
GSK produces medication to treat a realm of illnesses and is also known to be the pioneers in major medical breakthroughs which are one of the many strengths that the company possesses. The company’s B2C based product portfolio consists of the following categories; Anti-Infectives - Consists of products such as Augmentin, Zinnat, Zinacef, Timentin, Ceporex, Fortum and Zobactin and is the current market leader in the anti infective portfolio. Dermatology – Consists of products such as Stiefel, Cutivate, Bactroban, Betnovate, Oilatum, and Candid and is the current market leader in its portfolio. Enterprise – Consisting of products such as...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Glaxo Essay
  • Ratio Analysis & Valuation of Glaxo Smithkline Bangladesh Limited Essay
  • glaxo Essay
  • Glaxo Essay
  • Glaxo Pakistan Essay
  • Glaxo Wellcome Mini Case Essay
  • Mission Of Glaxo Smith Essay
  • Glaxo Italia Case Essay

Become a StudyMode Member

Sign Up - It's Free