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GlaxoSmithKline SWOT & PESTLE Analysis

ID : 52166353 | & Sep 2020

COMPANY PROFILE - GlaxoSmithKline Plc

Business Sector : Pharmaceuticals and Consumer Healthcare

Operating Geography : United Kingdom, Global

About GlaxoSmithKline Plc :

GlaxoSmithKline is a British pharmaceuticals and


healthcare company headquartered in Brentford, UK.
GSK has three major businesses namely pharmaceutical
medicines, vaccines and consumer healthcare products.
GSK o!ers an extensive array of innovative and
established medicines, vaccines, and consumer health
care products under well-renowned brands, to millions
of patients and consumers across the globe.
Pharmaceuticals are one of the core businesses of GSK.
The company has already attained leadership positions
in respiratory and HIV. GSK is now focusing on a new
R&D strategy on immunology, human genetics, and
advanced technologies in order to come up with the
most promising medicines besides strengthening its
existing pipeline. By delivering millions of vaccine doses
to people from across 158 countries, GSK has positioned
itself as one of the top vaccine companies in the world.
GSK's strategy for its Consumer Healthcare business is
to combine science and customer insights to produce
innovative everyday healthcare products. Its healthcare
portfolio consists of brands for oral health, pain relief,
respiratory, skin health, nutrition, and digestive health
divisions.
As of Q2 2019, 17 oncology assets in GSK's pipeline and
44 new medicines are in development. GSK is the eighth
largest pharmaceutical companies in the world as of
2019.
The company’s vision is to “be one of the world’s most
innovative, best performing and trusted healthcare
companies”. GSK’s mission “is to help people do more,
feel better, live longer.”
GSK’s USP or unique selling proposition lies in being the
8th largest pharmaceutical company, and one of the
largest investors in R&D, across the world with
commercial leadership in respiratory and HIV.

GlaxoSmithKline Plc Revenue : £30.821 billion - FY ending


31st Dec 2017 (y o y growth 0.2%) £30.2 billion - FY ending 31st
Dec 2017 £27.9 billion - FY ending 31st Dec 2016

Competitive Analysis of GlaxoSmithKline Plc

SWOT PESTLE
GSK began its successful journey as an apothecary shop
in London since then the company's driving force has
been innovation. From a group of individual
entrepreneurs to a global organization of around
100,000 employees, GSK has discovered, developed, and
commercialized a variety of medicines, vaccines and
healthcare products that constitute the pillars of today’s
GSK. GlaxoSmithKline is a science-led global health care
company whose core values are patient focus,
transparency, respect, and integrity. Therefore, the
SWOT report is essential to manifest a discussion on all
the pertinent internal strategic factors of GSK that
contribute to the trajectory growth of the company. The
SWOT Analysis of GSK substantiates the company's
current major strengths and opportunities from its
external environment that can be consolidated to
further strengthen the company. The report also
bestows intelligence on GSK's internal weaknesses and
external threats that can cripple its growth.
The core competency of GSK and one of its major
strengths is its strong Research & Development wing
that presents the company with a competitive edge over
its rivals. In 2018 the company has invested around £3.9
billion in R&D to focus on scienti#c research related to
the immune system, human genetics, and advanced
technologies. Apart from strong R&D capabilities
internal factors like global presence, strong distribution
and sales network, joint ventures, a broad array of
products, etc., are quintessential strengths of GSK.
GSK has come under a scanner for a health-care fraud
case of promoting drugs for unapproved uses and
failure to report safety data. These healthcare fraud
allegations are not only a mere weakness of a
healthcare company but also supremely dent the
reputation of the company extensively.
GSK seeks opportunities in collaborating with renowned
companies, for instance in 2019 GSK announced a #ve-
year collaboration with Lyell Immunopharma, a San
Francisco biotechnology company, to develop new
technologies to enhance cell therapies for cancer
patients. Launching new products is another great
opportunity for growth of the pharma company. GSK
encompasses this opportunity by strengthening its
product pipeline and introducing advanced assets in
Respiratory, HIV and, notably, Oncology sectors. GSK's
pharmaceutical and consumer products face stringent
competition threat from top industry players, creating
limited market share and price wars. Also, generic drugs
have become a threat to pharmaceutical companies as
their demand, sales and availability are increasing.
The SWOT analysis for GlaxoSmithKline is presented
below in a matrix followed by the detailed analysis:

Strengths Weaknesses

1. Developed a 1. GSK’s brand image


competitive advantage being a!ected by the
through consumer- health care settlements
centric, science-based in the US and bribery
innovation charges
2. Leadership in key Over-
the-Counter (OTC) and
oral health segments
3. Global sales and
marketing infrastructure

Opportunities Threats

1. Favorable demographic 1. Intense competition


and economic trends from Generic drugs
2. Growth opportunity in 2. Drug pricing controls
the vaccines business leading to cost
3. Growth opportunity in containment pressures
the HIV and infectious 3. Challenges with
disease business emerging markets
4. Opportunities in the
emerging markets driven
by the increasing
awareness about
healthcare needs

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Detailed SWOT Analysis of GlaxoSmithKline Plc


Strengths

1. Developed a competitive advantage through


consumer-centric, science-based innovation: GSK has
developed a competitive advantage over the years
through research & development capabilities which has
driven product expansion and is one of its major
strengths. GSK is committed towards technological
innovation keeping the consumer in the focus. This is
evident from their R&D investments which accounted to
£3.6 billion in 2016. The R&D budget was allocated
across their three businesses on six core areas
(respiratory diseases, HIV and infectious diseases, etc).
The R&D success is evident from the fact that currently,
they have 14 candidate vaccines for a range of diseases.
In addition to their internal R&D team, GSK has external
partnerships and collaborations with 1500 academic
bodies, biotechs and other pharmaceutical companies
which have helped them over the years to formulate a
strong basis for research and development. The
increased focus on product development helps GSK to
strengthen its market position and helps them in
maintaining a robust product pipeline.

2. Leadership in key Over-the-Counter (OTC) and oral


health segments: GSK is a market leader in key OTC and
healthcare categories and segments. Leading products
in OTC segment include Voltaren - #1 in global pain
market, Thera"u - #1 in global respiratory market and
Eno which is #3 in global digestive health market. The
company’s oral health segment o!ers products such as
Sensodyne - #1 in global sensitivity, Pardontax - #1 in
gum health and Poligrip which is #1 in global denture.
The continued success of these products has given GSK
a strong footprint across several markets.

3. Global sales and marketing infrastructure: GSK has


maintained a global footprint and is considered as one
of the most prominent prescription pharmaceutical
companies worldwide. They are present in 150+
markets. The global footprint has a dual advantage;
#rstly it helps the company with their strategic
expansion in emerging markets and secondly, it enables
GSK to go in for co-development and other
collaborations with other industry stakeholders.

Weaknesses

1) GSK’s brand image being a!ected by the health care


settlements in the US and the bribery charges against
them: GSK has been involved in many legal issues in the
recent past. The company has been reported on several
grounds regarding information related to safety data,
false price reporting practices, illegally promoting
antidepressants, etc. In 2012, the company entered a
settlement with the US government which is supposedly
the largest settlement in the pharmaceutical world
where GSK ended up paying a #ne of $3 billion ($1
billion in criminal #nes and $2 billion to resolve the civil
liabilities). Although it has been #ve years since the
incident, the thing that makes the issue still relevant is
the fact that the case was levied against Paxil and
Wellbutrin, GSK’s best-selling antidepressants. The non-
monetary impact of such settlements is long-term, and
the companies tend to take a major hit on their brand
image which certainly was the case with GSK as well.

Major Brands :

Pharmaceutical products
Calpol, others

Vaccine
Havrix (for hepatitis A)
Rotarix (for human rotavirus)
Typherix (for typhoid)

Consumer healthcare products


Aquafresh
Binaca
Horlicks
Nicorette
Panadol
Sensodyne

( (
Sample Complete Free Summary Report
Report

* By clicking on "Buy Now" you agree to accept our "Terms


Terms
and Conditions.
Conditions."

SWOT & PESTLE (combined)


Complete Report
INR 950 *
BUY NOW
with PayPal with Debit/Credit card
Great quality, A!ordable pricing.

Safe and secure payments

On purchase, the report will reach your email


inbox within minutes. At rare times, a slight
delay not exceeding 4 hours might be caused.

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• The SWOT and PESTEL analysis report of


GLAXOSMITHKLINE manifests the complex internal and
external factors a!ecting the GSK's brand, its
operations, business model, market strategy and growth
trajectory.
• The SWOT analysis assesses the strengths and
opportunities that GSK possesses and how it strategizes
itself to overcome its weaknesses and threats in its
operating macro environment.
• Understanding the role of technology and the
company's core competencies in shaping GSK's business
and presenting the company with a competitive
advantage over its competitors.
• The PESTLE analysis of the Pharmaceutical and
Healthcare Industry helps to distinguish the factors that
compel and restrain the entire industry and largely GSK.
• The PESTLE/ PESTEL/ STEEPL Analysis provides in-
depth analysis of all external factors speci#cally,
political, economic, social, technological, legal and
environmental, highlighting their consequence on GSK's
business model, marketing and growth strategy.
• Abstract information on GSK's business diversi#cation,
deriving its key business segments and highlighting its
major competitors.
• A comprehensive company analysis to obtain
perspicacity into company information, company pro#le,
business model, business plans and marketing strategy.
• Analysis of GSK's mergers and acquisitions, strategic
partnerships and alliances, that the GSK endorsed, and
the business aims or synergies that were achieved with
them.
• Interpretation of GSK’s USP or unique selling
proposition, mission statement, and vision statement.
With a peek into the GSK's key performance indicators,
core values, success factors, value proposition, and core
competencies.
• Discussion on H&M's business model, extending to the
analysis of key business segments and business case
study.

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References used in GlaxoSmithKline Plc SWOT & PESTLE


Analysis Report

1. GSK Annual Report 2018 - https://www.gsk.com/medi


a/5349/annual-report-2018.pdf

2. GSK Annual Report 2017 - https://pk.gsk.com/media/6


42405/gsk-annual-report-2017.pdf

3. GSK company website - https://www.gsk.com/

4. GSK About Us - https://www.gsk.com/en-gb/about-us/

The detailed complete set of references are avail


able on request in the 'Complete report' on purc
hase.

How to Reference This Page?

You can use the following in your reference section in


order to give credit to the source. For di!erent
referencing styles and detailed guidelines, please click
here.

GLAXOSMITHKLINE SWOT & PESTLE ANALYSIS - SWOT &


PESTLE.COM

SWOT & PESTLE.com (2021). GlaxoSmithKline SWOT &


PESTLE Analysis - SWOT & PESTLE.com. [online]
Available at:
https://www.swotandpestle.com/glaxosmithkline/
[Accessed 08 Jul, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

GlaxoSmithKline SWOT analysis has been conducted by


Mahakpreet Singh Bhatia and reviewed by senior
analysts from Barakaat Consulting.

Copyright of GlaxoSmithKline (GSK) SWOT and PESTLE


Analysis is the property of Barakaat Consulting. Please
refer to the Terms and Conditions page for usage
guidelines.

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