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SWOT Analysis Strengths rd As per Forbes, 2015, GSK ranks

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  • "SWOT Analysis Strengths rd As per Forbes, 2015, GSK ranks 3 largest pharmaceutical company across the globe and brandworth USD 2.8 billion with AA+ ratings (Brand Directory, 2015) The company has heavyinvestment in R & D – every hour £300,0..

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  • "SWOT Analysis Strengths rd As per Forbes, 2015, GSK ranks 3 largest pharmaceutical company across the globe and brandworth USD 2.8 billion with AA+ ratings (Brand Directory, 2015) The company has heavyinvestment in R & D – every hour £300,000(GSKf, 2015), 7.9% of global pharmaceuticalmarket share (GSK, 2015),15.9% of UK’s pharmaceutical market share (GSK, 2015) andconsolidation of giant two companies (Glaxo & Smith Kline) results in better technologies andresources (GSK, 2015) In addition to this, acquisition of Novartis vaccine business (GSK, g)2015 adds further strength. GSK innovation cell approved by National Institute of UK &Pharmaceutical inspection (GSK, 2015)Weakness GSK alleged for using cardiovascular drug called Rosiglitazone causing diabetes to patience’s.(New York Times, 2012). GSK was blamed for creating monopoly in manufacturing of AIDSdrugs by ceasing supply inspite of heavy demand (Kenan, 2015). GSK was accused for adultererdrugs (Reuters, 2010) GSK does not have enough plants to produce vaccine (GSK, 2015) OpportunitiesUntapped market such as Saudi Arabia, Yemen, Colombia where company is yet to expand(GSK, 2015). Constant R & D has led to numerous innovative medicines and external mutualcollaborations have led to develop transformative scientific concepts (GSK, 2015), Chances ofacquiring sick plants of Cipla India Ltd. Strategy BMT7026 Page 9 ThreatsThreats from rival companies such as Pfizer and Novartisand ban on use of Lamivudine andNevirapine in drugs or health care products in UK (Guadian, 2015) impose threat to company. Overall, the key drives are it brand reputation in inventing and manufacturing life savings drugs,vaccine and healthcare products over 100 years , ability to invest heavily in R & D, hugedistribution network has positively affected GSK business. Porter Value Chain Analysis Figure: Porter Chain Analysis (Parlikar, 2014 p.268) Inbound logistics – GSK enjoys large scale of economies and hence it is better position tobargain with suppliers & get the raw ingredients for pharmaceuticals and healthcare products atStrategy BMT7026 Page 10 least possible cost. GSK is in the process to upgrade its inbound logistics system where onlyapproved vendors will be partnering with GSK to ensure that inbound logistics is efficient andeffective (GSK, 2015). (How) GSK will conduct pre boarding assessment checking if the vendorproducts meet the GSK set criteria. Operations The company’s mission is to improve people quality of life by helping them to domore, feel better and live longer across the globe (GSK, 2015). With this mission inculcated, thecompany serves worldwide through huge distribution network. The company’s manufacturingsite is located in multiple regions such as England, New York, Brazil, Canada, India, Kenya, OakHill. GSK products are then shipped to distributors and stockist upon raising sales order andreceiving sales income. GSK does not have any outlets but has patient care centre where patientis given curing treatment for sophisticated patents who can afford expensive treatments. Outbound logistics – GSK products are made available through medical shops & healthcareproducts shops via distributors and stockist. The company has wide distribution system throughbig network of distributors who makes the GSK products available at every possible place ofconsumption. Marketing & Sales – The Company has robust distribution network, commercial teamresponsible to comprehend the patients and consumers and aggressive marketing policy andcustomer engagement model to grow the sales revenue. Services – The Company provides services to its consumers through healthcare centres, customerhelp center, patient education centre (GSK, 2015)Firm Infrastructure - The Company has corporate head office located in London and itsmanufacturing units are located in UK, US, India, China, Netherland, Germany, France, andStrategy BMT7026 Page 11 many parts of the world. The R & D centres are located in Mumbai, San Francisco, Las Vegas,London, Cambridge (GSK, 2015)Human Resource Management – The Company acquired, train and retain talented staff. Thecompany offers learning and development along with organisational development. Technological Developments – The Company keeps itself updated with latest neurosciencetechnology, antibody peptide tissue repair technology, stem cells & regenerative medicines toserve its consumers with contemporary technology to cure its consumers. Core Competencies & Capabilities According to Dickson (2014) core competencies must significantly contribute to end user,provide access to variety of market and difficult to follow. GSK mission is to improve people quality of life by helping them to do more, feel better and livelonger across the globe (GSK, 2015) GSK latest research innovation in fierce biotechnology andneuroscience has contributed significantly to the end users in curing multiple disorders (GSKd,2015). GSK vast customer database across the world provides it with cognizance to segment itscustomer base to instil a customer value and therefore it has access to variety of markets. GSKcontemporary technology and monopolistic patented medicines to cure ill patients and qualityvaccines provides tough challenge for competitors to follow (GSKe, 2015). Resource Based View of the Firm According to Rothaermel (2012) is way to gain competitive advantage by pondering theresources available within the company rather seeking at competitive environment. Strategy BMT7026 Page 12 "

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