GlaxoSmithKline – SWOT analysis

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GlaxoSmithKline is the universe ‘s 2nd largest pharmaceutical company. It was founded in 2000 as the consequence of a amalgamation between two big companies GlaxoWellcome and SmithKlineBeecham. It has gross revenues of ?22.7bn and employs 110,000 people worldwide. Its central office is in Brentford, England and it sells such good known trade names as Ribena ( drink ) , Panadol ( pain alleviation ) , Zantac ( anti-ulcer ) , Zovirax ( anti-viral ) and Augmentin ( antibiotic ) .

World ‘s 2nd largest pharmaceutical company, after Pfizer, is GlaxoSmithKline ( GSK ) , which was emerged from two large companies GlaxoWellcome and SmithKlineBeecham in 2000. It has 110 000 employees all over the universe and gross revenues of ?22.7bn. It is taking research-based pharmaceutical and healthcare company, committed to better the quality of human life by enabling people to make more, experience better and unrecorded thirster. ( gsk 2009 ) GSK is extremely ranked in top 100 alumnus employers, because as they say it is a topographic point where thoughts come to life. Concentrated in the UK, but besides runing in USA and over 100 states worldwide, GSK makes about 4 billion battalions of medical specialty and health care merchandises every twelvemonth. ( Top100GraduateEmployers 2009 ) .

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Let us now turn to a SWOT analysis of GlaxoSmithKline company:


  • Excellent Brand
  • Excellent turnover
  • Top word ‘s merchandise
  • Top R & A ; D company
  • Works with WHO


  • Expire of patent
  • Loss in gross
  • Needs of new drugs
  • Needs of new markets


  • Aging population in UK
  • Expand into BRIC states
  • Possible partnerships & A ; amalgamations
  • New drugs innovation
  • New diseases


  • Competition from rivals
  • End of patents
  • Geneticss industry
  • Expensive research
  • Useless research

Let us cognize analyse these SWOT findings


One of the biggest GSK strengths is that it has earned a high quality worldwide trade name, on which people trust and topographic point a batch of money in. But for this to go on the GSK put a batch of attempt by a batch of investing in research and development ( R & A ; D ) . GSK ‘s most sold merchandises are based on nervous system therapies, respiratory drugs, antiviral therapies and vaccinums. It has an first-class scope of drugs such as epilepsy intervention Lamictal, antidepressant Paxil, herpes intervention Valtrex, megrim therapy Imitrex, asthma medicine Advair, and antibiotic Augmentin. Besides company has merchandises for dental attention Aquafresh and Sensodyne, and smoking-cessation merchandises NicoDerm and Nicorette. ( Hoovers 2009 )

I think we all have heard more than one time such trade names as Aquafresh, Sensodyne or Nicorette, because all these merchandises were based on high quality advertisement. GSK is really involved in R & A ; D for such concerned diseases as AIDS, HIV, TB, Malaria. GSK is already making a batch to assist those with HIV in developing states, including support research into drugs for kids. ( Guardian 2009 ) GSK announced programs to put $ 97 million over 10 old ages “ to better research, development and entree to AIDS drugs in Africa ” . ( The Medical News 2009 )


As any other company in the universe, no affair how large and powerful it is, GSK every bit good has a failing side. One of the biggest failings is that most of the dugs patents are running out and it will run out Oklahoman or subsequently, it means that so other companies will be able to take the patients and sell drugs cheaper, which would take to another failing – a immense loss in gross.

And it is clear that a deficit in gross will impact detrimentally the R & A ; D, which is the most of import thing for this company ‘s future success and leading in the universe. Already there are 12 patents that are expired and during following 5 old ages at that place will be 10 more. ( GSK Annual Report 2008 ) Therefore occurs a demand for new drugs. Finding new drugs is one more failing, since it requires a batch of investing and research which non ever lead to success and largely to wastage.


There are several chances for GSK that could truly increase its net income. In this changing and with full of increasing unwellnesss universe there is ever chance to happen new drugs that have non been yet discovered by other pharmaceutical companies. Another promising chance is to spread out into BRIC states. Since these states are the most stable in the universe ‘s economic system ( practically non affected by the recognition crunch ) it would be really good harmonizing to high demand, inexpensive labor and sole local unwellnesss in BRIC states.

But I have to detect that every bit good as a batch of assuring chances in BRIC states there are negative side because of high corruptness and political jobs in these states, besides in such large states are ever large and dominant monopoly industry in any domain. Since England has an ageing population it leads us to one more chance for GSK, printing new drugs for old people diseases would take to singular demand.

Furthermore a possible partnerships and amalgamations with other pharmaceutical companies would accomplish better consequences in drugs development and would cut down competition. ”GSK announced that it has launched a alone partnership with Brazil ‘s Oswaldo Cruz Foundation ( Fiocruz ) to develop and fabricate vaccinums for pressing public wellness precedences in Brazil. The understanding will set up a new research and development coaction programme at Fiocruz to develop a vaccinum for dandy fever febrility, a mosquito-borne disease that globally places 2.5 billion people at hazard of infection.” ( GSK 2009 )


One of the biggest menaces for GSK is immense competition from other pharmaceutical companies such as Pfizer, Astra Zeneca, Novartis, AstraZeneca, Bristol-Myers Squibb. Since the patent cogency will non last everlastingly, therefore competition is even more daunting. Another serious menace is increasing desire for familial drugs, particularly recently because of the hard economic system state of affairs in the universe, refering cheaper monetary values.

But it ever depends on the consumer – whether they want to have higher quality or cheaper monetary value from their drugs. GSK has some future programs like: Cut its monetary values for all drugs in the 50 least developed states to no more than 25 % of the degrees in the UK and US – and less if possible – and do drugs more low-cost in middle-­income states such as Brazil and India, reinvest 20 % of any net incomes it makes in the least developed states in infirmaries, clinics and staff. ( Human-centered News and Reviews 2009 )

These programs could be taken as a menace because they will cut down companies gross, but meanwhile they will do a indefinable attempt for the human wellness betterment. As we analysed the GSK SWOT analysis it is obvious that this company will go on to be one the taking pharmaceutical company in the universe. Despite the fact that there are some menaces and failings GSK still has a batch of chances which are traveling to be improved in the close hereafter and strengths – gained by long and high quality experience are the 1s who could barely be outrival.


  1. Griffiths A, Wall S, 2008. Economicss for Business and Management. 2nd erectile dysfunction. London: Person Education gsk, 2009. About GSK. Available at: hypertext transfer protocol: // [ Accessed 26 Nov 2009 ] .
  2. Defender, 2009. GlaxoSmithKline urged to pool its patents on HIV drugs. Available at: hypertext transfer protocol: // [ Accessed 27 Nov 2009 ] .
  3. William hoovers, 2009. GlaxoSmithKline plc. Available at: hypertext transfer protocol: // [ Accessed 26 Nov 2009 ] .
  4. Human-centered News and Reviews, 2009. Guardian – Drug elephantine GlaxoSmithKline pledges cheap medical specialty for universe ‘s hapless. Available at: hypertext transfer protocol: // [ Accessed 27 Nov 2009 ] .
  5. The Medical intelligence, 2009. GlaxoSmithKline investing in AIDS drugs for Africa. Available at: hypertext transfer protocol: // [ Accessed 27 Nov 2009 ] .
  6. Timess Online, 2009. Tempus: GSK broadens its skylines. Available at: hypertext transfer protocol: // [ Accessed 27 Nov 2009 ] .
  7. Top100GraduateEmployers, 2009. GlaxoSmithKline. Available at: hypertext transfer protocol: // [ Accessed 26 Nov 2009 ] .

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