Gsk Case Essay

1148 Words Jan 5th, 2013 5 Pages
1- Derive three opportunities and three threats for GSK by first making the PESTEL analysis of the macro-environment surrounding the pharmaceutical industry. (9 points)

* PESTEL analysis of the pharmaceutical industry:

Political: Since the creation of healthcare insurance, companies have to conform themselves to two kinds of systems:
1) The universal system applied for example in France, with less demand in new technologies.
2) The very selective anglo-saxon system which is looking for high technologies, excluding people who can pay for treatments.
As we know the industry have to work on growing political focus on healthcare. Indeed, global governments are looking for healthcare savings especially in this time of economic
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Companies also tackle with the issue of intellectual property rights and the generic drugs. Moreover, they have to cope with the increase of trial within patients are involved.
Eventually, it’s hard to rationalize the market because of the two-system organization of the demand.

Environmental: As the global environmental agenda is growing up, pharmaceutical companies have the opportunity to include eco-objectives within their strategy and create Corporate Social Responsibility programs.
Indeed, the recent world community awareness permits to companies anxious to respect even more the environment to improve their corporate image.

Technological: Thanks to new technologies, the pharmaceutical industry has many digital opportunities concerning treatments or communication with patients. It allows direct to patient advertising and requires responsive service facilities. Furthermore, companies will go on focusing on new technologies like the biotechnologies. the macro-environment surrounding the pharmaceutical industry.
• Harmonization of healthcare systems across Europe
• Pressure from government regarding companies that try to make savings on the production of healthcare products
Ethical pharmaceutical companies want to reduce the ratio of the cost structure allowed to manufacturing of goods as it represent 25% and increase the ratio of sales and marketing.

• Global Economic crisis

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