Strategic Analysis: AstraZeneca's Competitive Environment and Industry

This report offers a comprehensive strategic analysis of the global pharmaceutical industry, focusing on AstraZeneca. It begins with an introduction to strategic management and AstraZeneca's background, highlighting its diverse product portfolio and involvement in the development of the Oxford-AstraZeneca COVID-19 vaccine. The main body of the report evaluates the UK and global pharmaceutical industry, providing key facts, PESTEL analysis (political, economic, social, technological, environmental, and legal factors), and a SWOT analysis of AstraZeneca. The report also examines the industry life cycle. The report concludes with a summary of the findings, emphasizing the strategic implications for AstraZeneca within the dynamic pharmaceutical market.

Strategic Analysis of the global
pharmaceutical industry and
competitive environment of
Astra Zeneca

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Evaluate the UK and global pharmaceutical industry.............................................................1
2. Assess the competitive environment of AstraZeneca..............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is a status quo can be described and described as utilising the
resources and belongings available within the employer to carry out and meet the set commercial
enterprise objectives and goals. It is a enormous aspect within a agency as it facilitates the
control of the corporation in growing plans in addition to guidelines and implement plan as it
should be and nicely. Strategic control allows the administration of an industrial business
enterprise undertaking to make informed determinations and expand as well as form green plans
of actions. In order to complete this assessment, AstraZeneca is taken in to consideration
(Baumgartner and Rauter, 2017). It is a British-Swedish multinational pharmaceutical and
biotechnology agency. This status quo turned into incorporated in 1999 and is established in
Cambridge, England, UK. It has a portfolio of products for main diseases in areas thinking about
oncology, cardiovascular, gastrointestinal, infection, neuroscience respiration and inflammation.
It is perhaps first-rate recognised for its engagement in growing the Oxford-AstraZeneca
COVID-19 vaccine. In order to perform this written assessment, the information regarding
external and internal business environment of global pharmaceutical industry will be defined.
Moreover, it will explain about the competitive environment of AstraZeneca.
MAIN BODY
1. Evaluate the UK and global pharmaceutical industry
The pharmaceutical enterprise is an essential area inside the UK. The tables beneath
display some key facts on the United Kingdom expenditure on drug treatments, as well as UK
jobs within the enterprise and the enterprise's contribution to the United Kingdom economic
system. A developing ailment burden, generic coverage, and proper get entry to healthcare
centers are boosting the UK healthcare marketplace; however increasing use of generics and
government charge-reducing measures to reduce expenditure are restricting similarly boom, says
studies and consulting firm Global Data (Engert, Rauter and Baumgartner, 2016). According to
the agency’s modern-day record, the United Kingdom pharmaceutical market turn out to be well
worth $24 billion in 2012 and is forecast to reach $31.7 billion via 2020, at a Compound Annual
Growth Rate (CAGR) of 3.5%. The segments that dominated the market in 2012 had been
Central Nervous System (CNS) drugs, in conjunction with cardiovascular and respiratory system
drugs.
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PESTEL Analysis- In order to determine the external business environment of particular
business sector, PESTEL analysis can be considered as tool of macro environment analysis
(Falle, and et. al., 2016). This analysis of the pharmaceutical industry will look at the present day
status of the pharmaceutical industry, its extraordinary driving elements and the effects they have
got on the sector.
Political- The following political factors have an effect on pharmaceutical industry.
Government Framework- All countries have a nice framework regarding the
pharmaceutical enterprise. This includes safety standards, certifications, and drug-associated
legal guidelines. While in many countries these prison tips are not so strict, in not so advanced
nations they may be quite harsh and do no longer permit the pharmaceutical employer to
improvement.
Closed Market- The pharmaceutical organisation includes numerous massive companies.
And the global level of their distribution and advertising in conjunction with the regulatory
framework makes it hard for newcomers to go into the marketplace. This indicates strict
competition within the marketplace as well as gives a bigger enterprise character given that most
of the manufacturers is set up.
Economical- The description of predominant within your budget factors which impacted unique
firm is as:
Growth in Individual Income- The trendy trend of family spending is in reality increasing
and that they spend a big a part of it in the direction of the pharmaceutical industry. Purchase of
medicine has emerge as more not unusual than ever and one of the primary reasons is that
humans can now own capsules that were previously of a excessive charge.
Costs-Cutting- As the drug fees are slashed with the resource of governmental policies,
pharmaceutical businesses must reduce down on their manufacturing charge. This is a major
downtrend for the situation of the pharmaceutical organization. However, it's far expected that
the global financial system will flourish within the coming decade allowing those groups to
enlarge and take decrease again the market.
Social- Key social factors of pharmaceutical industry are as under:
Generation Health- The cutting-edge populace features humans of older technology in a
large variety. This method the wide variety of ill humans is higher than ever (Wheelen and et.
Al., 2017). This has placed a excessive quantity of stress on the pharmaceutical industry main to
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its growth. However, at the same time as this unique era passes away there may be anticipated to
be a downfall in the call for of diverse tablets.
Global Obesity- Obesity is a larger component than ever before. The previous couple of
decades witnessed rapid modifications in the global weight-reduction plan fashion, and this has
led to weight problems in a huge part of the population. In most developed international
locations weight problems are almost a pandemic and this can quickly be the situation in
developing countries as nicely (Moutinho and Vargas-Sanchez, 2018). The speedy increase in
obesity fees has led to the requirement for plenty drugs and allowed those specific sectors of the
pharmaceutical enterprise to grow.
Technological- Below are the main technological factors which can affect respective sector is
under:
Growth within the Biotech Industry- Biotechnology lets in the decoding of animal and
plant components to help humanitarian reasons. It has a huge component to play within the
introduction of medicine and the cutting-edge growth on this enterprise is generating many new
drug treatments and additionally developing new techniques to make much less highly-priced
alternatives. There are immoderate expectations from the biotech industry to broaden even in
addition and constantly gas the increase of the pharmaceutical enterprise.
Market Reach- Marketing has come an extended manner from its origins. Now
pharmaceutical companies are able to market their merchandise at once to the consumers. This
has introduced approximately clients buying extra tablets and creating demand for more
purchaser tablets.
Environmental- Strong rules and cyber protection are the two key criminal components of
Pharma industry.
Strong Legislation- Frauds inside the healthcare and pharmaceutical location is quite not
unusual. This is why maximum governments have located strict laws that audit the boom of these
corporations. As a end result, pharmaceutical groups must be careful to fulfil all of the
governmental requirements on the same time as operating.
Cyber-security- Pharmaceutical businesses for the time being are in large part
information-based totally. Hence, they want to make sure protection from cyber threats (Lozano,
Nummert and Ceulemans, 2016). If an enterprise is open to cyber threats their clients might not
take delivery of as proper with their services and products.
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Legal- Following are the environmental factors of Pharma industry:
Carbon Footprint- Manufacturing capsules depart a large carbon footprint. And with the
modern-day environmental concerns, needs for law of pharmaceutical waste has grow to be a
chief concern for those businesses. Most of them are massive groups and are expected to meet
noticeably stipulated environmental policies.
Investments- Alongside regulating their personal carbon footprint those corporations
regularly take part in donating for environmental reasons (Ceulemans, Lozano and Alonso-
Almeida, 2015). As an end result, the novices are also expected to take part in such activities,
and this makes the market greater stringent.
SWOT Analysis- SWOT Analysis is a proven control framework which allows a logo like
AstraZeneca to benchmark its enterprise & performance compared to the competitors and
industry. AstraZeneca is one of the main manufacturers inside the pharma sector. SWOT
evaluation of AstraZeneca analyses the logo/business enterprise with its strengths, weaknesses,
opportunities & threats. In AstraZeneca SWOT Analysis, the strengths and weaknesses are the
internal elements while possibilities and threats are the outside elements.
Strengths- The control of AstraZeneca claims that its middle power id derived from its
wonderful portfolio of products, its global reach and certainly, the progressive and dedication of
its employees. It has ten products each with worldwide income of over $1billion i.E. Products
like Nexium, Seroquel, Crestor, Armidex and Symbicort. Other electricity of the organisation is
its internat beginning to reveal signs of boom in China, growing their commercial enterprise
there by using over two hundred% over the past 5 years.
Weaknesses- One of the weaknesses of the enterprise considers some disasters of
gambles on massive pipeline drug treatments. Specifically, one case which tells this is the
gamble of the firm on Iressa, a supposed to be breakthrough most cancers drug. The drug failed
to show a syrvival advantage. There had been protection flags raised with Crestor for ldl
cholesterol and with experimental tablets Exanta, a blood thinner and diabetes drug Galida. It
may additionally create a popularity for the company as a business making unsafe or ineffective
pills (Galpin, Whitttington and Bell, 2015). Other shortcoming is that it is also being infected by
the drug scarcity crisis. Also, the respective firm changed into tested responsible of inflating the
cost of Zoladex reported to Medicare as foundation of compensation that's every other weak
spot of it.
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Opportunities- In phrases of possibilities, the employer has many to be satisfied
approximately. First, its cutting-edge achievement in nations including China, Latin America,
and Eastern Europe can open up many opportunities. Another opportunity for the company is the
increasing want for innovative tablets, especially on illnesses which are presently hard to therapy
together with cancer and diabetes. The organisation has the ability to create leap forward drugs
as proven of their improvement of Galida and Crestor. Improvements and innovations in
oncology medicinal capsules is likewise one of the brewing opportunities for the company.
Threats- There is numerous varieties of threats are confronted with the aid of the company
associated with productivity and innovation as well as on drug protection, opposition, reputation
and rules etc. These threats, if now not cautiously planned and addressed, may impede the boom
of AstraZeneca to a high-quality extent. Many pharmaceutical groups are struggling to meet the
ones wishes simply to live on (Gamble, Thompson Jr and Peteraf, 2019). The increasing
proceedings towards the organizations marketing practices can also supply down its popularity.
Furthermore, the shift of the FDA at the research of over promotions of pharmaceutical agencies
can also have an effect on the business corporation in lots of techniques. The difficulty of direct-
to-purchaser advertising also can pose as hazard for the organization.
Industry Life cycle- The corporation life cycle refers back to the evolution of an business
enterprise or commercial enterprise via four ranges based totally at the business trends
commonly displayed in every section. The four stages of an organization lifestyles cycle are the
introduction, increase, adulthood, and decline degrees. The description of enterprise life cycle in
context of pharmaceutical sector is as beneath:
Introduction- It is the primary section, within it, patron call for is restricted cause of
unfamiliarity with the brand new product’s attributes and overall performance. In context of
AstraZeneca, below this phase distribution channels are nevertheless underdeveloped and there's
lack of complementary items that upload value for the clients, restricting the profit of recent
commodity.
Growth degree- In this segment, the made from pharma zone slowly draws attention
from a larger market segment, the industry moves at the improvement section wherein revenue
starts to upward thrust. Development in product attributes maximises the value of consumers. At
the growth degree, income preserve to upward thrust and businesses begin producing nice coins
flows and earnings as product revenue and charges surpass smash-even.
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Maturity- At the maturity degree, the majority of the businesses in the pharma industry
are properly-set up and the company reaches its saturation component (Seyfang and Longhurst,
N., 2016). These groups collectively try and moderate the intensity of organization opposition to
protect themselves, and to hold profitability with the aid of adopting techniques to deter the get
right of entry to of latest opposition into the company.
Decline- The decline degree is the remaining diploma of an business enterprise existence
cycle. The depth of opposition in a declining enterprise depends on numerous factors: pace of
decline, the peak of go out obstacles, and the level of fixed expenses. To deal with the decline,
some corporations may additionally choose to recognition on their most profitable product lines
or services so one can maximize earnings and stay inside the industry.2. Assess the competitive
environment of AstraZeneca
Industry five forces- The description of this analysis in context of AstraZeneca is as under:
Threat of New Entrants- The economies of scale is fairly tough to attain within the
enterprise wherein AstraZeneca PLC operates (Baumgartner and Rauter, 2017). This makes it
less difficult for those producing large capacitates to have a price gain. It additionally makes
manufacturing more pricey for emblem spanking new entrants. This makes the threats of recent
entrants a weaker force.
Bargaining Power of Suppliers- The quantity of providers inside the enterprise in which
AstraZeneca PLC operates is lots in evaluation to the customers. This method that the providers
have much less control over prices and this makes the bargaining power of companies a inclined
force.
Bargaining Power of Buyers- The type of carriers within the industry in which
AstraZeneca PLC operates is lots greater than the variety of corporations generating the goods.
This manner that the clients have a few agencies to pick from, and consequently, do no longer
have a incredible deal manipulate over fees. This makes the bargaining strength of customers a
weaker pressure within the enterprise.
Threat of Substitute Products or Services- There are only a few substitutes available for
the products which might be produced within the enterprise wherein AstraZeneca PLC operates.
The just a few substitutes which can be to be had are also produced by using low earnings
earning industries. This way that there is no ceiling at the maximum income that corporations
can earn in the company wherein AstraZeneca PLC operates (Engert, Rauter and Baumgartner,
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2016). All of those factors make the threat of opportunity products a weaker pressure inside the
industry.
Rivalry Among Existing Firms- The amount of opposition in the business enterprise
wherein AstraZeneca PLC operates are only a few. Most of those are also large in period. This
means that businesses within the enterprise will not make actions without being neglected. This
makes the competition amongst present day corporations a weaker strain within the organization.
Strategic group analysis- Strategic Group Analysis seems at game enthusiasts’ positions inside
the aggressive environment and the underlying elements that determine an organisation’s
profitability, as well as the aggressive dynamics of an industry. It attempts to represent the
techniques of all big opposition alongside widespread strategic dimensions. These dimensions
differentiating gamers into strategic groups need to be selected with recognize to organisation
form, profitability elements, and the undertaking issues being addressed (Falle, and et. al., 2016).
At the degree in which AstraZeneca is the marketplace may be very aggressive, and this fashion
keeps into the early period of the maturity stage. Besides many more competition offering their
merchandise, unique organizations continue the product-differentiation manner which
commenced inside the increase degree.
In the beyond 5 years there were many competition including GlaxoSmithKline, Pfizer and
Merck & Co. Who have been doing what AstraZeneca is doing, and this is one of the traits of the
adulthood level. With the huge variety of organizations generating merchandise, the opposition
for customers will become quite extreme; the method for agencies during the maturity level will
become one of survival, as much opposition will in the end withdraw from the market (Wheelen
and et. al., 2017). In this climate AstraZeneca has persisted differentiating their models in order
that the market is aware about the variations in the enterprise’s merchandise and the competition’
products.
CONCLUSION
This has been summarised form the define information that strategic management is the
strategic use of an enterprise useful resource to reach enterprise business enterprise aims and
goals. Strategic management calls for mirrored image at the tactics and moves within the
corporation and outdoors components which can affect how the mission capabilities. It
encompass established order of targets, studying the rivalry environment, determining the
interior analysis, assessing method and assuring that ammonization rolls out the techniques
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throughout the company. By using different framework and methods like PESTEL analysis,
SWOT analysis, industry life cycle, porter’s five forces and strategic group analysis, the business
environment of the firm can be determined and monitored.
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REFERENCES
Books & Journals
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140, pp.81-
92.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner production, 112,
pp.2833-2850.
Falle, S. and et. al., 2016. Sustainability management with the sustainability balanced scorecard
in SMEs: Findings from an Austrian case study. Sustainability, 8(6), p.545.
Wheelen, T.L. and et. al., 2017. Strategic management and business policy (p. 55). Boston, MA:
pearson.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability. Journal of
Cleaner Production, 125, pp.168-188.
Ceulemans, K., Lozano, R. and Alonso-Almeida, M.D.M., 2015. Sustainability reporting in
higher education: Interconnecting the reporting process and organisational change management
for sustainability. Sustainability, 7(7), pp.8881-8903.
Galpin, T., Whitttington, J.L. and Bell, G., 2015. Is your sustainability strategy sustainable?
Creating a culture of sustainability. Corporate Governance.
Gamble, J., Thompson Jr, A. and Peteraf, M., 2019. Essentials of Strategic Management: The
Quest for Competitive Advantage, 6e.
Seyfang, G. and Longhurst, N., 2016. What influences the diffusion of grassroots innovations for
sustainability? Investigating community currency niches. Technology Analysis & Strategic
Management, 28(1), pp.1-23.
Online
Where does the UK market stand in global pharma?, 2019. [Online]. Available Through: <
https://pharmafield.co.uk/in_depth/where-does-the-uk-market-stand-in-global-pharma/>.
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