Swot analysis of GSK. Glaxo SmithKline (GSK) is a pharmaceutical multinational British company. SmithKline Beecham and Glaxo Wellcome laid the foundation of the GSK in December 2000. The headquarter of the pharmaceutical brand is in London, England, UK.
GSK is the 6th largest pharmaceutical brand globally after Johnson & Johnson, Pfizer, Merk & Co, Sanofi, Roche, and Novartis. It’s a listed company in the London Stock Exchange Market.
According to an estimate, the annual revenue of GSK in 2020 was 34.099 billion pounds. Out of which, the company’s net income was 5.749 billion pounds. The company has employed approximately more than 99437 employees to manage the various operation of the company worldwide.
Over the counter medicine, pharmaceutical, nutritional products, oral healthcare, and vaccines are some of the top products of GSK. Some of the significant subsidiaries of the pharmaceutical brand are ViiV Healthcare, Stiefel Laboratories, and Tesaro.
Today, we’ll discuss the swot analysis of GSK. It would focus on the internal and external factors of the pharmaceutical brand that are impacting its growth. Here’s the swot analysis of GSK as follows;
Strengths of GSK
Joint Venture with Novartis
GSK bought the healthcare stake of Novartis, comprising of 36.5%, back in 2018. It was a significant deal to the brand because Novartis is a big pharmaceutical brand in the healthcare and medicine industry. Acquiring its stake has helped the brand to increase its market share and introduce more products.
Globally Recognized Brand
GSK is making commercial sales in more than 150 countries across the world. The company has over 87 manufacturing units in 36 countries. The global presence of the pharmaceutical brand shows the brand’s strength that it has reduced the risk by diversifying its market share.
Visit any of the nearest medical stores, and you’ll find the products of GSK. The brand has powerful distribution in many countries like India, China, Japan, Malaysia, Singapore, Australia, Germany, Canada, Russia, UK, USA, and many countries worldwide. The company deals with local distributors to make its products available at various retail stores across the world.
Research & Development
GSK has advanced research and development centers in countries like China, Belgium, Spain, the USA, and the UK. The brand has made significant progress in developing medicines like cardiovascular, HIV, respiratory, and many others. The pharmaceutical brand uses the latest technology and research and development to solve the medical industry’s mysteries.
GSK has won many awards in the medical and healthcare industry over the years. For instance, the pharmaceutical brand won the IMPACT Award 2019 and 2020 in various categories like Headway East London, Empire Fighting Chance, Auditory Verbal UK, and many more.
Weaknesses of GSK
GSK has over 1071 patents and 51 family members’ drugs in 59 countries across the world. The pharmaceutical brand has also got many licenses and certificates in various countries. The company now faces severe issues of keeping track of the expiry of thousands of products in more than 150 countries across the world. It could happen overnight and cost the pharmaceutical brand a lot.
Many health critics have claimed that GSK has been using incorrect pricing, not reporting safety data, and promoting unlawful drugs. For instance, the company had to pay a considerable price to promote unapproved antidepressant medicines in the US. Such claims are negatively reputing the company.
Opportunities available to GSK
People have realized the significance of healthcare, and the demand for quality healthcare service is increasing, both in the emerging and developed economies of the world. Therefore, GSK should utilize this opportunity up to the full extent. It would help the pharmaceutical brand to increase the customers’ market share.
GSK offers various types of medicines in different categories like respiratory, cardiovascular, metabolic, etc. Now GSK is working with CureVac N.V. to develop the vaccine for covid-19, mRNA vaccines to be more precise. The company plans to support the production of 100 million doses of the covid-19 vaccine. Such initiatives would help the company to increase its product portfolio.
GSK has been increasing the brand acquisitions like GlycoVaxyn and expanding its product portfolio for the past few years. The company is collaborating with Shionogi, ViiV, Pfizer, and many other brands. Such collaboration and acquisition show the company’s positive and open attitude towards innovation, growth, and productivity.
People have become more cautious about a healthy lifestyle and diet. They prefer health-related products. GSK has an excellent opportunity to launch such products; it would help the company increase its market share.
Threats GSK has to face
The global economy is going through a period of recession because of the lockdowns and shutdown of businesses. It has dropped the income and buying power of many people worldwide. Even though the economic downturn hasn’t dropped the company’s revenue, it poses a severe threat.
Governments of various countries regulate the prices of medicines and drugs. The low pricing policy of the Indian government and other countries sometimes very severely impact the profitability of the pharmaceutical brand.
Many companies are launching generic medicines the same as the GSK used to offer. The increased usage of generic products has decreased the sale and revenue of the brand.
The healthcare and pharmaceutical industry has become very competitive in recent years. GSK is facing very tough competition in terms of price, quality, and market share. Brand loyalty is shallow in the medical industry. People want any medicine or drug that works instead of sticking to one particular brand.
After a careful study of the swot analysis of GSK, we have realized that GSK is undoubtedly the world’s leading pharmaceutical brand. Generic medicines, industry competition, unapproved drugs, and government regulations are severe threats to the company. GSK should utilize its brand images, research & development, and resources to exploit opportunities like healthcare trends and expand its product portfolio.