Strategic Analysis

Topics: Pharmaceutical industry, GlaxoSmithKline, Strategic management Pages: 7 (4157 words) Published: October 30, 2014

Glaxosmithkline- UK
Business Unit- Vaccine and Medicine
Word Count- (3,050)
Executive Summary
GlaxoSmithKline is one of the major pharmaceutical companies in United Kingdom that continues to traverse the competitive and challenging pharmaceutical industry. This report gives insight on the analysis of the strategies used by GlaxoSmithKline (vaccines and medicine business unit) to be able to sustain its performance in the pharmaceutical industry. This report applies PESTLE model, Porter’s five-force model, and Value chain analysis as well as the SWOT analysis tools environment facing the company. The reports assess performance of GSK Company amid the economic downturns. Based on the findings, GSK has been able to harness its potential, in efforts of enhancing competitiveness in its production of medicines and vaccine, notwithstanding environmental forces affecting the company. This report has also identified challenges that GSK has experienced over the years. In particular, GSK is faced by challenging; political, social and economic environments that has affected its position in the competitive pharmaceuticals market. However, there is need for GSK to incorporate strategies focused at leveraging its performance, to ensure it remains relevant in the market. TABLE OF CONTENTS

TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc402358202 \h 12. External Environmental Analysis on Vaccine and Medicine Production PAGEREF _Toc402358203 \h 12.1 PESTLE Analysis PAGEREF _Toc402358204 \h 12.1.1 Political Factors PAGEREF _Toc402358205 \h 22.1.2 Economic Factors PAGEREF _Toc402358206 \h 22.1.3 Social-Cultural Factors PAGEREF _Toc402358207 \h 32.1.4 Technological Factors PAGEREF _Toc402358208 \h 32.1.5 Environmental Factors PAGEREF _Toc402358209 \h 32.1.6 Legal Factors PAGEREF _Toc402358210 \h 42.2 Porter's 5 Forces PAGEREF _Toc402358211 \h 42.2.1 Threat of New Entrants PAGEREF _Toc402358212 \h 42.2.1 Threat of Substitutes PAGEREF _Toc402358213 \h 52.2.3 Bargaining Power of Customers PAGEREF _Toc402358214 \h 52.2.4 Bargaining Power of Suppliers PAGEREF _Toc402358215 \h 52.2.5 Intensity of Rivalry PAGEREF _Toc402358216 \h 53.0 Value Chain Analysis PAGEREF _Toc402358217 \h 64. SWOT Analysis PAGEREF _Toc402358218 \h 84.1 Strengths PAGEREF _Toc402358219 \h 84.2 Weakness PAGEREF _Toc402358220 \h 94.3 Opportunities PAGEREF _Toc402358221 \h 94.4 Threats PAGEREF _Toc402358222 \h 95. Current Strategy PAGEREF _Toc402358223 \h 105.1. Proposed Strategy PAGEREF _Toc402358224 \h 106. Conclusion PAGEREF _Toc402358225 \h 117. References PAGEREF _Toc402358226 \h 12

1. IntroductionAccording to Company Spotlight, GlaxoSmithKline (2011), GlaxoSmithKline (GSK) is a renowned UK-based pharmaceutical and healthcare company. GSK is rated as the second largest among the biggest pharmaceutical and healthcare companies in the world. This company engages in a range of business activities including manufacturing of pharmaceutical products such as the anti-infectives, medicines used for central nervous conditions, respiratory conditions, oncology issues and gastrointestinal conditions. GSK is also famous for producing vaccine products. In addition, it is concerned with the management of the consumer healthcare operation. This service is mainly focused on the production of nutritional drinks, over the counter drugs and other healthcare items (Weise, 2013). GlaxoSmithKline (GSK) SRL (2012) reports that this company had been formed after unity between Glaxo Well come company and SmithKline company. Since its inception, GSK has remained a pertinent player in the pharmaceutical industry where it has researched on medicines and vaccines that have been rated as the top priority by the World Health Organization. This company owns 7% of the total global pharmaceutical products. It has penetrated many countries including developing the world where its products sell cheaply. Noteworthy, this company enjoys the strongest global presence, as it is available in 70...

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