Company profile:
GlaxoSmithKline (GSK) Pakistan is a Pakistani pharmaceutical company which is a subsidiary
of British company GlaxoSmithKline. GlaxoSmithKline Pakistan Limited was created on
January 1st, 2001 through the merger of SmithKline and French of Pakistan Limited, Beecham
Pakistan (Private) Limited and Glaxo Wellcome (Pakistan) Limited and stands today as the
largest pharmaceutical company in Pakistan. It is listed on the Karachi and Lahore stock
exchanges. It is engaged in manufacturing and marketing of research based ethical specialties
and pharmaceutical products. GSK has a large portfolio of products ranging tablets, toothpaste,
inhalers and complex capsules in over 28,000 different pack sizes and presentations. The
Company is a subsidiary of S.R. One International B.V., incorporated in Netherlands, whereas its
ultimate parent company is GlaxoSmithKline plc, UK.
GlaxoSmithKline plc PESTEL analysis is a strategic tool to analyze the macro environment of
the organization. PESTEL stands for Political, Economic, Social, Technological, Environmental
& Legal factors that impact the macro environment of GlaxoSmithKline plc.
Industry in which we are operating:
GlaxoSmithKline (GSK) operates in the Pharmaceutical and HealthCare Industry.
We have to prepare a report regarding different trends that our industries are facing and what
opportunities and threats it has for our company.
Factor Trends Opportunities Threats
Sociocultural Aging Population: This will create a It can be a threat if
This means that older greater demand for people don’t like our
people have more pharmaceutical product and they are
health issues then product, healthcare not satisfied with it
younger ones so this products and help us and move towards
will causing us in in generating more another product
tackling more health revenues. Including which belongs to
care issues because areas where we are some other company
an older person is not focused such as and help them
suffering from only a oncology and generating or raising
single disease but respiratory, as well as their revenues.
with multiple issues. pressuring healthcare
Like if a person is systems to restrain
diabetic there is a spending growth.
probability that that Our long-term
person must be a priorities,
cardiac as well. underpinned by our
culture, will help us
Growing Obesity deliver our strategy.
Rates:
As the rate of some
diseases like malaria An opportunity for us Risk of unsuccessful
or AIDS had been as we are a leading new products.
declined in the recent company we have
years the rate of such products which
obesity has increased help people in losing
rapidly as compared weight. e.g.,
to them. As people “Orlistat 60mg”
gain more fat they helps in losing
start facing issues weight.
like: problem in
breathing if they walk
a bit longer or they
become lazy as well.
So for this company
has designed a
product which help
people in losing
weight.
Health Trend:
Despite an aging
population and If this trend
If people are into
growing rates of continues, and
healthier life we
obesity, there’s a influences more
should develop such
trend towards being people to lead
products like:
more health healthier lifestyles, it
healthcare liquids,
conscious, especially might reduce the
anti-aging products or
in developed need for
This will help us in
countries. Among pharmaceutical. This
generating profits in a
young and middle- would be bad for us
condition where
aged adults, it’s because it will reduce
people are not buying
becoming fashionable our sales and the
medicines but our
to lead a healthy life. company might start
health diet products.
From partaking in running in loss if
This will also give us
regular exercise to appropriate actions
a competitive edge
eating well and even are not implemented.
over our competitors.
practicing
mindfulness, health
choices are definitely
hot right now.
Economical The Company There would be
continues to focus on Foreign exchange
internal cost saving volatility and high
and operational inflation risk
efficiency across the impacting business
organization to profitability.
mitigate the
inflationary impact. Make economy
friendly products that There would be a
Company monitors consumers can buy. threat for us that high
the changes in macro- interest rates will stop
economic policies on us from generating
an ongoing basis and more profits.
takes appropriate
action in case of
significant changes in
the environment.
Growing healthcare This helps us because It can be a threat in a
spend: we are a leading manner like number
A vast number of pharmaceutical of diseases are
diseases are present company with strong increasing day by day
now in this modern customer satisfaction and people are
world. So, there’s an and customer getting suffered by it
upward trend in intimacy and it helps at an unstoppable
household healthcare us in generating more rate. So in this case
spending. That’s to products and more more medicines and
say that the average profits. healthcare items are
individual spends required in a large
more and more amount. So it can be
money on healthcare a threat if people
including medication tends to move
every year. towards other
companies and start
buying their product
rather than ours and
helps them in
generating profits
which can be as
equals to ours.
Regulatory
Political/Legal framework: This is an opportunity
GlaxoSmithKline plc for us because having
is operating in Drug a complex regulatory
Manufacturers - framework will work
Major in more than as a barrier for the
dozen countries and new entrants who
exposes itself to want to be in the
different types of competition. This is
political environment because well-
and political system established
risks and pharmaceutical
Governments are industries like (GSK)
increasingly are well aware of the
extending the laws and regulations
regulatory remit to and they work
support accelerated affectively by
development and the keeping an eye over
introduction of new these laws.
medicines.
Stay updated on
policy changes Change in the pricing
implemented by rules for medications
relevant authorities from the list of vital
and hold regular and essential drugs.
discussions with them
on the same.
Moreover, industry
issues are addressed
to respective
authorities through
the Pharma Bureau
and other relevant
business associations.
Technological Rapid advances in Help to produce If the company does
innovative science different products not follow the
and technology are from the various techniques of the
transforming the organisms to enhance medicines strictly so
sector. Considering the standard of life. the quality of the
the technological medicine and
advancement and to products will be
obtain operational diminish.
efficiencies, the
Company has plans
to implement a new
ERP system in 2020. Produce different And the low quality
It also plans to drugs to compete of products makes the
convert its offices with the diseases and ranking of the
working space into threats to life. company falls.
Smart office. People will not
The company believe and does not
Continuously assess produces that drugs satisfied with the
the need for which enhance the product and
investment in new betterment of crops medicines
technological and increase the
advancements and production of
invest timely to agriculture with their
achieve operational drugs.
efficiencies.
The healthcare sector Government policies If these companies
Competitors remains intensely and regulations in collaborate with each
competitive, with pharmaceutical other certainly they
companies industries are strict produce more
increasingly pursuing thereby limiting enhancing products in
acquisitions and number of the market that can
collaborations to competitors. help to fall the GSK
strengthen their ranking in the market.
portfolios GlaxoSmithKline
uses planning and Complementary
Pfizer’s foresight to position Alternative Medicine
Merck & Co. itself for long term (CAM) is one of the
Eli lilly and success in the world products substitute to
company of competition. GlaxoSmithKline.
Amegen Furthermore, These new forms of
Lund beck pharmaceutical contemporary
industry requires medicine are a major
costly extensive threat for this
research and company since they
development have been found to be
techniques which much safer and
limit number of cheaper.
competitors.