"-Strategy BMT7026 Page 1 ContentsContentsContents .......................................................................................................................................... 2Introduction ..................................................................................................................................... 3Glaxo Smith Kline .......................................................................................................................... 3UK’s Pharmaceutical Industry ........................................................................................................ 4GlaxoSmithKline Strategic Position : External Industry Analysis ................................................. 5Porter’s Generic Strategy ................................................................................................................ 5Porter’s Five Forces ........................................................................................................................ 6SWOT Analysis .............................................................................................................................. 9Porter Value Chain Analysis ......................................................................................................... 10Core Competencies & Capabilities ............................................................................................... 12Resource Based View of the Firm ................................................................................................ 12Competitive Advantage ................................................................................................................ 14Strategic Recommendations.......................................................................................................... 15References ..................................................................................................................................... 17Strategy BMT7026 Page 2 IntroductionThis report critically assesses Glaxo Smith Kline’s (GSK) strategic position in UK’s health careand pharmaceutical industry. The report begins by outlining the company’s and healthcare andpharmaceutical industry. Glaxo Smith Kline external environment is scanned using differenttools such as Porter five forces, Porter Generic Strategies, and SWOT analysis while the internalenvironment is explained through the use of Porter Value Chain, Resource based view of thefirm and Core Competencies and Capabilities for BOTH HEALTH CARE ANDPHARMACEUTICAL PRODUCTS. The report outlines the company’s competitiveadvantage followed by strategic recommendations. Glaxo Smith Kline th Glaxo Smith Kline is the world’s 6 largest pharmaceutical company after Pfizer, Novarrtis,Sanofi, Hoffman & Merck having its head office in London. It also operates in bio technology,and consumer health care products. The company was founded 15 years ago form the merger ofGlaxo and SmithKline and is currently listed in London Stock Exchange & New York StockExchange. Glaxo Smith Kline well known products includes Flovent, Lovama, Augmentin,Adviar, Lamictal where as range of health care products includes Aquafresh & Sensodynetoothpaste, Horlics, Nicoderm, Night Nurse and many others (GSK, 2015).The sales revenue as on March 2014 was £ 23 billion where as the net operating income was £2.8 billion. The company employees approx 96,500 employees and serves worldwide (GSK,2015). Strategy BMT7026 Page 3 UK’s Pharmaceutical Industry According to Office for National Statistics, UK (2015) the pharmaceutical industry turnoverincreased from £ 70.1 billion in 2013 to £ 76.6 billion in 2014 which indicates growth of 9% ascompared to previous year and it is also anticipated that the figures are likely to grow in 2015and 2016 due to increased in disposable income and people desired to live longer and healthylife. The top companies in pharmaceutical industry includes Novartis , Pfizer , Roche, Sanofi, GlaxoSmith Kline, Merck & Co. Astraeneca, Shire, Johnson and Johnson (PM Live, 2014)The chart below represents growth in primary care and hospitals IMS Analysis Manager (2014) Strategy BMT7026 Page 4 "