GSK SWOT Analysis Sample UK

Parent Company: GSK Plc

Category: pharmaceutical and healthcare companies

Sector: Pharma and Healthcare

Tagline/ Slogan: Do more, feel better, live longer

USP: GlaxoSmithKline is the UK’s largest and world’s second largest pharmaceutical company

Founded: 2000

Headquaters: London, United Kingdom

GSK is one of world’s leading research-based pharmaceutical and healthcare companies. It produces a wide range of medicines, vaccines and consumer healthcare products. The company has operations in more than 115 countries and its products are sold in over 100 countries. GSK was created in 2000 through the merger of Glaxo Wellcome plc and SmithKline Beecham plc. Recently compnay changed it’s name from  GlaxoSmithKline to GSK.

The company has a portfolio of products that includes some of the world’s best-known prescription medicines and vaccines. GSK is also a major provider of over-the-counter (OTC) healthcare products, including Sensodyne toothpaste, Panadol pain relief and cold remedies.

GSK’s mission is to help people do more, feel better and live longer. The company is committed to improving the quality of human life by enabling people to do more, feel better and live longer. GSK is focused on three priorities: improving access to medicines, building trust in our company and delivering shareholder value.

GSK is a science-led company with a special focus on the innovative research and development of new medicines, vaccines and consumer healthcare products. GSK has a strong track record in taking early stage ideas all the way through to commercial success. The company spends around £6 billion each year on research and development, making it one of the world’s largest investors in this area.

Following are the strengths, weakness,  opportunities and threats of GSK company.

GSK Strengths

1. Efficient sales and distribution network: GSK has a very efficient sales and distribution network. The company has a presence in more than 115 countries and its products are sold in over 100 countries. This gives GSK a very wide reach and allows the company to tap into new markets quickly and efficiently.
2. Strong R&D capabilities: GSK is one of the world’s largest investors in research and development. The company spends around £6 billion each year on research and development. This gives GSK a very strong R&D capability and allows the company to bring new products to market quickly.
3. Diversified product portfolio: GSK has a diversified product portfolio which includes medicines, vaccines and consumer healthcare products. This diversification helps to reduce the risk of the business and ensures that GSK is less reliant on any one product or market.
4. Strong financial position: GSK is a financially strong company with a strong balance sheet. The company has a AA- credit rating from Standard & Poor’s. This gives GSK the financial strength to weather any storms and continue to invest in its business.
5. Customer relationships: GSK has strong relationships with its customers. The company has a wide range of customer groups including patients, healthcare professionals and government bodies. These relationships give GSK a good understanding of customer needs which helps the company to develop products that meet these needs.

GSK Weaknesses 

1. High level of debt: GSK has a high level of debt. As of March 31, 2018, the company had net debt of £25.4 billion. This high level of debt could put pressure on the company’s finances if interest rates were to rise.
2. Dependence on key products: GSK is reliant on a number of key products for its revenue. The company’s top five products accounted for around 27% of total revenue in 2017. This reliance could put pressure on the company if any of these products were to lose market share.
3. Litigation risk: GSK is facing a number of lawsuits relating to the safety of its products. The company is currently facing lawsuits in the US relating to the safety of its diabetes drug, Avandia. This litigation risk could have a negative impact on the company’s reputation and finances.
4. Pricing pressure: GSK is facing pricing pressure from generic competitors. Generic drugs now account for around 60% of the total market for prescription drugs in the US. This pricing pressure is likely to continue and could have a negative impact on GSK’s profitability.
5. Currency risk: GSK is exposed to currency risk as a result of its international operations. The company derives around two-thirds of its revenue from outside the UK. A strengthening of the pound against other currencies could have a negative impact on GSK’s revenue and profit.

GSK Opportunities

1. Emerging markets: GSK has a strong presence in emerging markets and this is expected to continue to grow. The company derives around 30% of its revenue from emerging markets. This growth is being driven by the increasing number of people who are able to access healthcare in these markets.
2. Product innovation: GSK is focused on product innovation and this is expected to continue. The company has a strong pipeline of new products which includes medicines, vaccines and consumer healthcare products. This product innovation is expected to drive growth for the company in the future.
3. Partnerships: GSK has formed a number of partnerships in recent years which has helped to drive growth. The company has partnered with other companies in the healthcare sector to jointly develop new products. These partnerships give GSK access to new markets and help to reduce the risk of the business.
4. Acquisitions: GSK has made a number of acquisitions in recent years which has helped to boost growth. The company’s most recent acquisition was of Novartis’s 36.5% stake in their consumer healthcare joint venture. This gave GSK full ownership of the business and added a number of well-known brands to its portfolio.
5. Increase Opportunities in the vaccine industry: In recent years, there has been an increase in demand for vaccines. This is due to the outbreak of diseases such as Ebola and Zika. GSK is one of the leading suppliers of vaccines and is well placed to benefit from this increased demand.

GSK Threats

1. Competition: GSK faces competition from a number of large pharmaceutical companies. These companies have the financial resources to invest in research and development and to bring new products to market. This competition could limit GSK’s growth in the future.
2. Regulatory risk: GSK is subject to regulatory risk as a result of its operations. The company is required to comply with a number of regulations, including those relating to the safety of its products. Any failure to comply with these regulations could lead to fines or other sanctions.
3. Reputational risk: GSK’s reputation is at risk as a result of the lawsuits it is facing in the US. These lawsuits relate to the safety of the company’s diabetes drug, Avandia. If the company is found liable, this could damage its reputation and have a negative impact on its business.
4. Operational risk: GSK faces operational risk as a result of its global operations. The company has a number of manufacturing sites around the world. Any disruption to these operations could have a negative impact on the company’s business.    
5. Price controls: In some markets, the government imposes price controls on pharmaceutical products. This could limit GSK’s ability to increase prices and could have a negative impact on its profitability.

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