AstraZeneca is a biotechnology and pharmaceutical British-Swedish multinational company. The pharmaceutical brand started its business in 1999 after the merger of Astra AB and Zeneca Group PLC. Today, we’ll discuss the PESTLE analysis of AstraZeneca; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting AstraZeneca
Some of the main political factors in the AstraZeneca PESTLE analysis are as follows;
I-Tough Approval Process
AstraZeneca is operating its pharmaceutical and biotech business in various countries across the world. It is highly difficult for pharmaceutical brands to get approval from the political government and get past the bureaucratic barriers. For instance, the drug approval from Europe and the US is high and they have to wait for months to get their products approved.
II-Healthcare Policies
The healthcare policies of different governments and countries are very strict to protect and ensure the health and safety of individual customers and their citizens. For instance, they check the quality of drugs and their pricing, whether it is suitable and affordable for their people to use the particular drug and product. AstraZeneca should comply with health and government regulations to keep running its business without any disruption.
III-Political Stability
The stable political environment plays a key role in the growth and development of the pharmaceutical brand AstraZeneca. The disrupted supply chain and distribution channels due to riots, roadblocks, procession, and other political conflicts; stop the availability of drugs from reaching the end consumers.
Economical Factors Affecting AstraZeneca
Some of the main economic factors in the AstraZeneca PESTLE analysis are as follows;
I-R&D Investment
AstraZeneca invested approximately 10.9 billion USD in research and development in 2023. It is much higher than the accumulative earnings and revenue of various countries and various brands. It shows the company’s strong commitment to innovation in the biotechnology and pharmaceutical drug business to maintain its market leadership position in the industry.
II-Exchange Rate
AstraZeneca is operating its pharmaceutical business in various countries and markets across the globe. In other words, the company’s revenue comes from various sources in different currencies. The value of the British Pound is higher than the USD, and it depreciates the company’s revenue and profitability.
Social Factors Impacting AstraZeneca
Some of the main social factors in the AstraZeneca PESTEL analysis are as follows;
I-High Aging Population
The aging population has been increasing significantly for the past few years. According to an estimate by WHO, the number of elderly people over the age of 60 years old would be more than 2 billion people by 2050. The aging population needs more healthcare services and facilities than the young ones, and it presents great growth opportunities for AstraZeneca to serve elderly people and increase its sales.
II-Health Awareness
Public healthcare awareness has been increasing significantly for the past few years. Nowadays, people are more informed about their health, well-being, and their diet than ever before. According to an estimate, approximately 63% of the patients and sick people are aware of the symptoms of the diseases before visiting the doctors. It puts great pressure on AstraZeneca to provide a more innovative solution to the patients.
III-Mental Health Awareness
Speaking of health awareness, people have also become careful and cautious about their mental health. For instance, many people are using anti-stress and anti-depressant medication; AstraZeneca should launch new medications and drugs to improve the mental health of people with limited side effects.
Technological Factors Affecting AstraZeneca
Some of the main technological factors in the AstraZeneca PESTEL analysis are as follows;
I-Biotech Market
According to an estimate, the growth of the biotech business would reach approximately over 727.1 billion USD by 2025. Digital devices and online health solution applications are transforming the landscape of the healthcare industry. Approximately 75% of healthcare professionals believe in the fact that digital healthcare solutions are improving patient recovery. AstraZeneca should develop innovative digital healthcare devices, tools, and equipment to improve and facilitate the patient recovery process.
II-Tech Integration
AstraZeneca should integrate AI, machine learning, and automation technology to improve the healthcare and well-being of patients. According to an estimate, AI technology has decreased the pharmaceutical drug development cost by 35%, and it shows the positive impact of technology in achieving efficiency.
III-Cybersecurity Threats
AstraZeneca deals with highly sensitive data and groundbreaking research work. It is highly significant for the pharmaceutical brand to strengthen its firewall to avoid any type of potential cyber security threats and hacks.
Legal Factors Impacting AstraZeneca
Some of the main legal factors in the AstraZeneca PESTEL analysis are as follows;
I-IPR
AstraZeneca has earned the IPR (intellectual property rights) of dozens of its innovative drugs and they help the company to maintain its competitive and market leadership position in the pharmaceutical industry. The company should pay a close head on the expiration of the license and trademark to avoid any type of legal issues. IPR and trademark legal would not only jeopardize the company’s reputation but also drain a significant amount of capital resources of the brand.
Environmental Factors Affecting AstraZeneca
Some of the main environmental factors in the AstraZeneca PESTEL analysis are as follows;
I-Environmental Sustainability
The governments and the consumer market have become highly careful about the company’s practices and their negative impact on the environment. AstraZeneca should comply with environmentally sustainable policies, reduce the wastage of resources, limit the toxic impact on the environment, renewable sources of energy, and engage in eco-friendly practices.
Conclusion: AstraZeneca PESTLE Analysis |PESTEL Analysis of AstraZeneca |External Environmental Analysis of AstraZeneca | Strategic Analysis of AstraZeneca
After an in-depth study of the pestle analysis of AstraZeneca; we have realized that AstraZeneca is the world’s leading biotech and pharmaceutical brand. If you are learning about the AstraZeneca PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
