Swot Analysis of GSK

This article provides a Swot Analysis of GlaxoSmithKline (GSK), analyzing its internal environment to determine its strengths, opportunities, and threats. It discusses GSK's strong R&D and portfolio expansion, strong sales and distribution networks, and strong global presence as strengths. It also highlights healthcare fraud allegations impacting GSK's brand image and limited success outside its core business as weaknesses. The article further explores opportunities for strategic expansion through acquisition and collaboration, and improving demand and awareness about quality healthcare. Finally, it discusses threats such as drug pricing controls, intense competition in the industry, and generic competition.

MARKETING

TABLE OF CONTENTS
Swot Analysis of GSK.................................................................................................................3
REFERENCES................................................................................................................................5

Swot Analysis of GSK
It is a strategic analytical tool that is used to analyze internal environment of the company
and determine it’s strengths, opportunity and threats which supports business to gain high
profitability by minimizing threats. GlaxoSmithKline (GSK) offers it’s services across the world.
This model is used to analyze internal environment of the GSK.
Strengths
 Strong R&D and portfolio expansion: GSK mainly focuses on it’s R&D department
continuously to improve a strong research and development wing. KSK has achieved
large market shares on it’s certain medicines such as HIV, cardiovascular and respiratory
medicines. Company always invest huge capital in R&D department to makes it’s
technology effective which brings innovation product portfolio in the workplace as result
company enables to achieve good market positioning.
 Strong sales and distribution networks: GSK have developed a strong sale in the Indian
market and other multiple countries around the world (Jahan, 2018). It also has
established strong distribution network for ensuring that it’s products are available
everywhere. In addition, it’s suppliers always try to give company’s new products to the
customer as soon as possible.
 Strong global presence: GSK offers it’s services more than 100 countries across the
world so, it has achieved strong global presence that reduces over dependencies on
several markets.
Weaknesses
 Healthcare fraud allegation impact brand image: GSK has alleged by some countries as
fraud due to have unlawful sponsored prescription drugs, failure to give safety report
against unlawful prescription drugs and false pricing. For example, Antidepressant drug
promotes by GSK in US without getting approval by FDA. Such act brings negative
publicity for the company and impacts it’s brand image as well.
 Limited success outside core business: GSK is one of the leading companies in it’s
pharmaceutical sector but after that it has faced challenge in other market while moving
to other product segment like vaccine with it’s existing culture.

Opportunity
 Strategic expansion by Acquisition and collaboration: It is good opportunity for the GSK
to expand it’s business in other countries by expanding it’s brand portfolio. So, company
has collaborated with other companies like Pfizer and Shionogi in 2016 that supported to
capture large market share.
 Improving demand and awareness about quality healthcare: GSK must use this strategy to
improve awareness in Indian’s people about quality healthcare products as well as other
emerging nations. When GSK will develop it’s bottom line and top-line that will supports
to gain high profitability on it’s products.
Threats:
 Drug pricing controls: It is major threat for the GSK because there are various countries
which have imposed law to control price of drugs. For example, pricing control has been
imposed in the India and according to the police hike price of drugs will automatically
decrease.
 Intense competition in the industry: Pharmaceutical sector has become one of the
booming business, so intense competition is increasing day by day. For instance, GSK’s
products in healthcare of consumers and pharmaceuticals has improved competition in
the pharmaceutical market that is not only limited market share but also improves price
wars (Mahin, 2018).
 Generic competition: High awareness about generic medicines has impacted selling
revenue of company’s products negatively. So, it also has become major threat for the
GSK.
From the above discussion can be analyzed that GSK needs to investment on it’s technology then
it will enable to bring innovation in it’s existing products and services as well as become market
leading company in the global market.

REFERENCES
Books and Journals
Jahan, I., 2018. GlaxoSmithKline Bangladesh Limited (GSK) (Doctoral dissertation, Daffodil
International University).
Mahin, M.R.A., 2018. The gap between consumer and retailer for GSK’s one of the growing oral
healthcare brand “Sensodyne” in Bangladesh.