Study On Strategic Management | GlaxoSmithKline
Added on 2020-01-07
11 Pages3130 Words320 Views
Strategic Management1
Table of ContentsEXECUTIVE SUMMARY..................................................................................................................3Question 1.............................................................................................................................................3Question two.........................................................................................................................................6CONCLUSION....................................................................................................................................9REFERENCES...................................................................................................................................102
EXECUTIVE SUMMARY The present study has been based on strategic management where GlaxoSmithKline (GSK)has taken into the consideration. It has the sixth largest pharmaceutical company of the UK. Theentire study has divided into two sections. The first part has put the lights over high level ofprofitability of the organization. To analyze it, Porter’s Five Force analysis method has adopted.From this, it has determined that there have different macro factors such as bargaining power ofcustomers and supplies, entrance of new competitors, political, legal etc. These all have helpedGSK to carry out the pharmaceutical business of organization in the UK in ethical manner. Thesecond section has put the focus over the assessment of the resources and competencies of GSKfirm. From the assessment, it has defined that work culture, quality of work; diversifiedpharmaceutical products etc are major competencies of cited firm QUESTION 1GSK company is a world sixth largest pharmaceutical company to maintain its position theymake their marketing strategy and business policy to take into consideration 1porter five forces thataffect its marketing policy and also consider macro factors that influence pharmaceutical industry inthis report we study how these five forces and macro impact the GSK company are discussed below-1.Threats of new entrants- GSK company is a pharmaceutical company which involve highentry barrier for the new firm the factor that affect another new firms to enter into apharmaceutical industry are patents, high cost advantage enjoy by economies of scale,government rules and regulations, research and development, huge investment involved incapital, patents, brand image leads to low threats on new entrants. The cost involved in enterinto a pharmaceutical company is high, it also involve high research and development. GSKCompany eliminate their competitors with their brand image, provide safety to their regularconsumer, take care of their health leads to increase in customer loyalty and confidence intheir patients. (Tony Grundy .2016 )2.Bargaining power of buyers- The bargaining power of buyer is high in GSK company theNHS is major buyer of this company the quality of medicine and provide wide ranges ofmedicine and they take care of people healthcare, give lifelong survive promise to theirpatients . GSK spend much of its time on research and development which result into highquality of product they produce the major consumer of this company are doctors , patients,hospitals and now it becomes a top pharmaceutical company globally . 3.Bargaining power of suppliers – The main suppliers of this company is raw material, labour,3
Experts who investigate on distribution, marketing, production and clinical officers. TheGSK Company maintain their relationship by meets suppliers needs on time, they offerexcellent offer to their employees and also these company maintain a clean record and makecontractual with their suppliers for this reason the bargaining power of suppliers is low. 4.Threats of substitute of products or services- GSK Company have high threat ofsubstitute. Generic brand medication is a main substitute for the pharmaceutical company.Substitute of GSK product is complementary alternative medicine (CAM) they deliver sameproduct to their patients exceptional is that they use different brand name and various pricesthey offer. The new form of CAM Threat the GSK Company’s product but they found saferand cheaper in comparison to conventional medicine so the GSK Company faces majorthreat from its substitute. (c.smith,1991 )5.Rivalry among existing firms – Pharmaceutical industry have low competitors due to strictgovernment rules and regulation due to this GSK company grow fast and expand itsbusinesses result into company generating large revenue and success in the pharmaceuticalindustry reduce competition . GSK Company have a great planning and foresight to itposition itself for long period of time they survive in this industry, but this company requireextensive research and development techniques to reduce number of competitors.Macro factors that affect the GSK Company are discussed below -Political factor- Every country's government have their own rules, regulation there is now growingin political focus and pressure on healthcare across world so the GSK company make their businessstrategy, market strategies in accordance with the government rules and regulation to compete their4
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