External and Internal Analysis of GlaxoSmithKline (GSK)

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Strategy Tool 1
Table of Contents
Introduction......................................................................................................................................2
External Analysis.............................................................................................................................2
PESTLE analysis..........................................................................................................................3
Porters five model............................................................................................................................4
Threats of new entrants:...............................................................................................................5
Bargaining Power of Suppliers....................................................................................................5
Bargaining Power of Buyers........................................................................................................5
Threats of Substitute Products or Services..................................................................................6
Industry rivalry.............................................................................................................................6
Internal Analysis..............................................................................................................................6
VRIO framework for GSK...........................................................................................................8
SAFe criteria....................................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

Strategy Tool 2
Introduction
GlaxoSmithKline (GSK) plc. is a well-known, famous, science-led global healthcare company,
which is having special purpose to service people through different products to feel better and
live longer. Healthcare sector is based on the innovations. GSK has three global businesses that
are manufacture, grow, and research innovative pharmaceutical medicines, such as products, and
vaccines for healthcare sector (gsk.com, 2019).
GSK has an objective is to be one of the trusted, best performing, and most innovative healthcare
companies in the whole world (Pandurangarao, 2015). GDK have some mission to create its
values in the heart of people and define its culture. Therefore, they can deliver innovative
medicines and products for its patients and consumers (Teece, 2010). GRS’s values are integrity,
patient focus, respect, and transparency and its expectations are teamwork, courage,
development, reliability, and accountability (investorschronicle, 2018).
This report will explain about the external analysis of GSK with the help of PESTLE and
PORTER 5 forces to identify GSK’s threats and opportunities as well as assess industry
attractiveness. It will also describe about the industry analysis through PORTER’s five-force
model.
In this report, key competences of the GDK will explain, which will give GSK its competitive
advantage. In internal analysis, it will explain about the strengths and weaknesses of GSK. It will
provide tangible and intangible resources of GSK and it will provide financial statement before
joint venture and after joint venture of GSK with Pfizer in 2017-2018.
Value chain internal analysis of GSK will describe in next section of this report. This report will
provide VRIO analysis for finding unique capabilities for competitive advantage to GSK. In this
report, recently implemented strategy will explain and evaluate it using SAFE criteria in the later
section.
This report will include internal and external analysis for GSK with different opportunities and
threats. It will analyze strengths and weaknesses of GSK.

Strategy Tool 3
External Analysis
External analysis is use for providing different factors of a firm. PESTLE and POSTER five
force models has used for finding many factors of company (Dudovskiy, 2013).
PESTLE analysis
GSK is a well-known company in the field of healthcare area because of its research and
development of innovative medicine and vaccines for different diseases.
Political Factors  Political stability is necessary for drug manufactures, as it is a
major sector in the country’s economy (Enderwick, 2009)
 Level of corruption is affecting the healthcare sector
 Political interference and bureaucracy affects healthcare sector
 Pricing regulations are affecting mechanism of healthcare
Economic Factors  Economic system is make effect on the sales of medication in
healthcare sector
 Exchange rate is a factor that affect profit of GSK as well as
stability of host country currency
 GSK’s profit affect because of skill level of employees
 Labor costs and productivity is a huge factor in front of GSK
 Economic growth rate stability is necessary for GSK, as it is
affecting their market in future.
 GSK is highly affected from inflation rate, unemployment rate,
and interest rate
Social Factors that
Impact GSK
 Demographics of rural and urban population
 Societies class structure and hierarchy affects
 Culture of society in term of gender roles and social conventions
 Societies entrepreneurial sprits
 Leisure interest
Technological
Factors that Impact
GSK
 Technological changes provides competitive advantage to GSK
 Online marketing is impact on the product offering
 Cost structure of GSK