GlaxoSmithKline plc is nothing but a healthcare company that is associated with the investigation, expansion, and manufacturing of medicines, consumer healthcare products, and vaccines. This is a global British pharmaceutical and consumer health products corporation. This was supposed to be the sixth-largest pharmaceutical company all over the globe. The company is now operating in over 100 nations and has a powerful presence in the United States, Asia-Pacific, and Europe. The company is spending a lot of money to develop its product portfolio. The primary business of the company is pharmaceuticals. The company is popular for its production of drugs all across the universe. With the help of the SWOT Analysis, the company was able to get all its positions in the market. The company is well-known for its hard competition in marketing and has its idea of how far a corporation can resist the stress or threats in the market.
In this article, we are going to do a SWOT analysis of GlaxoSmithKline. So, without further ado let’s start.
A Swot Analysis Of GlaxoSmithKline
With the help of the SWOT analysis of a company, we can detect the strengths, weaknesses, opportunities, and threats of the company. With the help of this SWOT analysis, the company can learn what their powerful points are, and where they are lacking, and can catch the opportunities to reduce the amount of loss or the risk.
Every company needs to maintain a SWOT analysis. With the help of this thru will be able to make optimum use of the resources and also able to cut down the amount of risk. Let’s make a detailed SWOT analysis of GlaxoSmithKline.
What Are The Strengths Of GlaxoSmithKline?
The strengths of the company are given below:
- Strong Research And Development:
The company has put a huge amount of effort into research and development. They have made improvements in respiratory, HIV, and cardiovascular drugs. Because of the technology-oriented practices, there is a growth in the function of the company. It assists to make their market position strong.
- Efficient Sales And Distribution Network:
The company has developed its distribution channels in India as well as all over the world. Because of their developed distribution network, the product is available everywhere. This improves sales as well as brand portfolio. They are capable enough to offer new products as well as a proper and developed network of allocation.
- Global Presence:
The company is operating in various nations, decreasing the hazard of over-reliance on some markets and obtaining market share. The company is a popular firm all across the universe.
- Customer Relationships:
The company keeps up customer relationship management which helps the company to gain a high level of consumer loyalty along with existing consumers as well as potential consumers. The company can increase its brand image and brand loyalty by keeping up good relations with consumers.
- Training And Development:
The company invests a lot of money in the training and improvement of the employees. The company needs highly efficient and trained staff. The company invests a lot of money in training and career development which in turn becomes an asset for the firm. The highly efficient workers always try their best to gain the best possible profits for the firm.
- Newmarket Performance:
The company has achieved and is thriving in the new market. The expansion has been useful for the firm to improve more sources of income and diversify the effect of the financial process in the nations in which it functions.
What Are The Weaknesses Of GlaxoSmithKline?
The company has a few weaknesses. With the help of SWOt analysis, we can learn how the company tries to settle all those weaknesses. The weak points of the company are as follows:
- Healthcare Forgeries And Allegations:
The company has been blamed for illegal procedures like facilitating prescription drugs, inaccurate pricing charges, failure of disclosing security information in specific nations, and misleading sales charges. For instance, expenses in the United States for approving antidepressants that have not been authorized by the FDA. Due to such examples, the brand image of the company can be badly influenced.
- Generic Competition And Maturity Of Flagship Drugs:
A lot of products and vaccines of the company are disclosed to the competitive market from generic drugs to flagship medicines. This influences the sales of the company.
- Poor Product Demand Forecasting:
The company is poor in forecasting the demand for products. They are causing a higher amount of missing scopes to their opponents. This is one of the reasons why the investors of the day are very high compared to its opponents. The company keeps its stock very high in-house as well as channels. But they are not so good at forecasting the demand for their product.
What Are The Opportunities For GlaxoSmithKline?
The opportunities for the company are given below:
- Development By Acquisition And Collaboration:
Recently, the company developed its portfolio inorganically through investments and alliances. Investments and alliances enable the company to improve its development and enhance its market share. For instance, the alliance with ViiV, GSK’s HIV specialist firm united in 2016 with Pfizer and Shionogi and the investment of GlycoVaxyn in 2015. Such investment and partnership enable the firm to reach greater heights and catch the market.
- New Product Launch:
In recent times, the company has introduced different new products in the metabolic and respiratory business. Introducing Nucala as a therapy for refractory eosinophilic asthma patients in grown-ups is the best instance. With the help of such product introduction, the portfolio of the company becomes strong and the brand image of the company also gets improved.
- Improving Demand And Quality Healthcare:
The growing demand in India and other rising countries and understanding of quality healthcare has given the companies like GlaxoSmithKline a lot of opportunities to enhance and strengthen their bottom line and the top line of their product line. Nowadays people are very conscious about their health and the healthcare products or drugs they use. So, the company needs to retain the quality of its healthcare products.
- New Technology:
The new technology will enable the company to use various pricing strategies in the new market. This will allow the company to keep up with loyal consumers through other valued-based services. As it is a pharmaceutical firm the company should adapt the new technology quickly and be upgraded with the new technology. Embracing new technology will assist the company to survive in the competitive market.
- Increase Opportunities In The Vaccine Industry:
As the primary business of the company is pharmaceuticals, GlaxoSmithKline has the scope of growing its market in the field of developing vaccines for infectious diseases. This will grow their market share and trust among consumers for the company.
What Are The Threats For GlaxoSmithKline?
The threats for GlaxoSmithKline are as follows:
- Intense Competition:
The company handles customers as well as pharmaceutical products. That is why this makes severe competition among other companies which restricts the market share as well as increases the price battles.
- Government Regulations:
The government interferes in the pharmaceutical industry a lot. The rules and regulations of the government may influence the production and sales of the company and this is a very important threat for the firm. There are various kinds of laws followed in various nations and the company has to understand the laws of every nation properly before they start their production.
- Price Controls:
In various nations, pricing is chosen by the laws of their nations. For instance, in India, a new pricing management policy has been suggested under which the prices of medicines may reduce. That is why GSK needs to abide by the price rate fixed by the nation.
Conclusion
The company has very powerful analysis and development skills. It is presented all over the world. With the help of the above SWOT analysis of GlaxoSmithKline, we can know the shortcomings of the company leading the company to reduce its value in the market. That is why the company needs to take necessary actions on its brand management to settle those weaknesses.
After analyzing the SWOT of GSK we have understood that the company will continue to be the leading firm in the pharmaceutical industry all over the universe. Even after learning the fact that the company has shortcomings and threats, GlaxoSmithKline still has a lot of scopes that are going to be developed very soon. If you want to learn more about the company in detail you may get in touch with My Assignment Writing Help right now.
Faqs
- What Are The Three Pillars Of Gsk?
Everyone at GSK is concentrated on three pillars: Innovation, Performance, and Trust. A crucial part of faith is for the company to be a contemporary employer. When the company concentrates on the well-being of the workers and has the flexibility to maintain all lives, the employees can thrive and do tremendous things at work as well as at home.
- What Is The New Strategy Of Gsk?
New GSK will prioritize R&D and retail investment in Vaccines and Specialty Medicines, which are anticipated to thrive to around three-quarters of the sales of the firm by 2026. As part of its 2021-26 outlook, Vaccines are anticipated to thrive in sales at a high single-digit % CAGR and Specialty Medicines at a double-digit % CAGR.
- What Is The Future Of Gsk?
The company disclosed its anticipated sales related to the pandemic in 2022 to be at identical levels to 2021 but said these would pitch in less to profit at “New GSK” due to low margins on its antibody therapy, knocking off earnings by 5% to 7%. GSK shares were up 0.2% at 0845 GMT.
