SITUATIONAL

ANALYSIS

GSK & ASTRAZENECA

 GSK

Vision is to enhance human health and well-being globally.

Mission is to develop innovative pharmaceuticals, vaccines, and
consumer healthcare products to improve lives and address
unmet medical needs.
Strategy focuses on research excellence, portfolio
diversification, strategic collaborations, innovation,
sustainability, and a customer-centric approach to drive growth

ORGANIZATIONAL
and deliver value to stakeholders.

ASTRAZENECA

VISION, MISSION Vision is to transform the lives of patients through innovative

medicines and healthcare solutions.
Mission is to develop and deliver life-changing medicines and
therapies that address unmet medical needs and improve patient

AND COMPETITIVE outcomes worldwide.

Strategy focuses on research excellence, therapeutic innovation,
strategic collaborations, operational efficiency, and sustainability

STRATEGY
to drive growth and make a meaningful impact on global health.
SITUATIONAL ANALYSIS OF GSK & ASTRAZENECA

Porter's Five Forces analysis helps understand the competitive forces at

play within their industry, identify key drivers of profitability, and
3. PORTER’S FIVE FORCES formulate strategies to enhance their competitive position. By assessing
these forces, businesses can make informed decisions about resource
allocation, market positioning, and strategic direction.

PESTEL analysis, organizations gain insights into the external factors shaping their
business environment. This helps them identify opportunities for growth, anticipate
2. PESTEL ANALYSIS threats and challenges, and develop strategies to adapt to the changing landscape
effectively.

SWOT analysis provides a comprehensive overview of a company's current situation, helping it

1. SWOT ANALYSIS make informed decisions and develop effective strategies to leverage strengths, mitigate weaknesses,
capitalize on opportunities, and manage threats.
 SWOT ANALYSIS GSK & ASTRAZENECA
GSK: Global presence, operates in over 75 countries; access to different markets
Research and Development: They have made progress in respiratory, HIV, oncology as well as
infectious diseases. £6.2bn invested in R&D (GSK, Annual Report, 2023).
AstraZeneca: Global Presence: Operating in over 100 countries, AstraZeneca COVID-19 vaccine
have notably elevated the company's global visibility (AstraZeneca, About Us).
Research and Development: invested over $10.9nb in R&D in Oncology, Cardiovascular, Renal &
Metabolism, Respiratory & Immunology, Vaccines & Immune Therapies, and Rare Diseases
(AstraZeneca, Annual Report, 2023).
STRENGHTS
WEAKNESSES
GSK: Frauds and allegations: in unlawful practices, including promoting prescription drugs,
false pricing accusations, misleading sales practices, and failure to disclose safety information in
specific countries. (Office of Public Affairs U.S. Department of Justice, 2012). Generic
competition: ranging from generic medications to flagship drugs. This competition impacts GSK's
sales performance (Competition appeal Tribunal, 2018).
AstraZeneca: Drug Patent Expirations: The loss of exclusivity on key drug patents can lead to a
significant drop in revenue as generic versions become available (AstraZeneca, 2021).
GSK: Growth by acquisition: In 2023 GSK acquire Bellus Heath for $2bn in Canada, in
2022 Affinivax in US for $2.1bn (Tracxn, 2024). New product & technology: In recent
times, GSK has introduced several new products an platform technologies encompasses
mRNA, which is a focal point for the future of vaccines (GSK, Technologies).
AstraZeneca: Strategic Acquisitions and Partnerships: In 2023 AstraZeneca acquired
Gracell Bio for $1.2 bn from China and Icosavax for $1.1 bn in US, as well as CinCor in
US for $1.3nb (Tracxn, Acquisitions by AstraZeneca). Advancements in Technology:
Utilizing progress in biotechnology, artificial intelligence for drug discovery, and data
analytics can enhance the efficiency of research and development processes, providing a
competitive advantage.
OPPORTUNITIES
THREATS
GSK: Intense competition: Ffizzer Inc and Johnson & Johnson are amongst its
competitors (Global Data, 2024). Government Regulations: adhere to the legal
frameworks of each jurisdiction when conducting its production activities (GSK, Codes,
standards and reports). Price controls: In numerous countries, drug pricing is regulated by
local laws. (GSK, Our position on Pricing and Access).
AstraZeneca: Intense Competition: Pfizer and Johnson & Johnson (Global Data, 2024,
AstraZeneca plc: Competitors). Reputation Risks: Adverse publicity concerning drug side
effects, recalls, or legal matters can tarnish the brand image and erode consumer trust.
 PESTEL ANALYSIS OF GSK & ASTRAZENECA

Political Economical Socio- Technological Environmenta Legal

Cultural l

Regulation and Approval: Global Economic Conditions: GDP Demographics: Aging Advances in medicine: Research & Sustainability in operations: Patent laws: Intellectual
approvals for new drugs from growth rates, recessions can impact population, by 2050, the global Development Technological Carbon Footprint, Renewable property rights and patent laws
agencies like the FDA (U.S.), EMA consumers’ ability to afford population aged 60 and older advancements in medicine, such as energy, managing waste and GSK play a crucial role in protecting
(Europe), and MHRA (UK). medications. Interest rate changes will double to 2.1 billion, genomics and biotechnology, can explores renewable energy sources GSK's and AstraZeneca's
Trade Policies: Tariffs, trade affect capital costs, especially with opportunities for healthcare for drive innovation in drug and eco-friendly packaging innovations and maintaining
barriers, and international trade substantial debt, and impact GSK. development for both companies. solutions to mitigate its their competitive advantage.
agreements influence operations, investment choices. Inflation environmental impact. AstraZeneca Regulatory compliance:
Health Awareness and Access Digital health: adoption of digital
especially considering they operate increases raw material, production, explores green chemistry and Compliance with various
to healthcare: can influence technologies such as AI can
globally and source raw materials and research costs, affecting margins biotechnology solutions to develop regulations related to drug
demand as well access to influence automatization of
and distribute products across and consumer purchasing power. environmentally friendly safety, advertising, and
healthcare. processes of interaction with
borders. manufacturing processes and eco- marketing is essential for both
Economic Policies: Policies related patients, healthcare providers also
Government Healthcare Policies: Cultural Perception of friendly products. companies to avoid legal issues
to foreign direct investments on leading to discovery of new drugs
Vaccination Campaigns and Public subsidies for the sector. Vaccination: Public attitudes and diagnosis. Sustainability in the supply chain: and penalties.
Health Initiatives: Government- towards vaccination and GSK assesses the environmental
driven vaccination or health Cost of Research & Development: personalised medicine Leveraging technologies like GSK's patents and intellectual
impact of its raw materials and property rights are crucial for
campaigns, COVID-19. Economic factors like the availability particularly considering telemedicine, mobile health apps,
transportation methods to minimize maintaining its competitive
AstraZeneca is influenced by of skilled labour, the cost of COVID-19 vaccination and wearable devices, GSK aims to
carbon emissions and environmental edge.
government related to funding, drug equipment, and the infrastructure for campaign can effect provide patients with better access to
degradation.
pricing or insurance covers. research can influence the economic AstraZeneca. healthcare services. AstraZeneca must comply
GSK is influenced by the changes feasibility of R&D projects. AstraZeneca assesses sustainable with strict regulations
AstraZeneca utilizes advanced
related to drug approvals, pricing manufacturing facilities, reducing governing drug development,
Supply Chain Costs: post Brexit and technologies such as high-
and marketing. water consumption, and minimizing testing, and marketing in each
current economic situation, like fuel throughput screening, computational
waste generation, biodiversity country where it operates
price volatility, can influence the cost modelling, and machine learning
conservation and ecosystem
of transporting goods algorithms to streamline its drug
preservation.
PORTER’S FIVE FORCES GSK & ASTRAZENECA
Threat of new entrants
GSK- Moderate threat of new entrants due to high barriers
to entry in the pharmaceutical industry. These barriers
include significant R&D investment requirements, stringent
regulatory approvals, and extensive intellectual property
protection. However, the threat is somewhat mitigated by
the potential for generic competition and emerging biotech
firms.
AstraZeneca - Moderate threat of new entrants due to
significant barriers to entry in the pharmaceutical industry.
These barriers include high R&D costs, stringent regulatory
requirements, and the need for substantial marketing and
distribution networks. Emerging biotech firms and generic
drug manufacturers pose some threat .
Threat of substitutes
GSK- Relatively Low but alternative treatments and
therapies exist, pharmaceuticals often offer unique
benefits and are essential for managing various medical
conditions. High costs and risks associated with
developing new drugs deter potential substitutes.
AstraZeneca- The threat of substitutes is relatively low.
AstraZeneca offer unique benefits and are essential for
managing various medical conditions. The high costs and
risks associated with developing new drugs deter potential
substitutes.

Bargaining power of Buyers

Bargaining power of suppliers
GSK- Moderate bargaining power. GSK
relies on suppliers for raw materials,
research equipment, and manufacturing
facilities. While GSK maintains strong
relationships with its suppliers and
diversifies its sourcing, any disruptions in
the supply chain or increases in input costs
could impact profitability.
AstraZeneca - Moderate bargaining
power. The company maintains
relationships with multiple suppliers and
may have some leverage, any disruptions
in the supply chain or price increases could
impact operations and profitability.
Competitive Rivalry
GSK- Veri high competition, it competes
with other pharmaceutical companies as
well as generic drug manufacturers.
Innovation, brand recognition, and
regulatory compliance are critical factors
influencing competitive positioning in this
highly regulated and competitive market.
AstraZeneca- Very hight competition, with
numerous global and regional AstraZeneca
competes with other pharmaceutical giants
as well as generic drug manufacturers.
Innovation, brand recognition, and
regulatory compliance are critical factors
influencing competitive positioning .
GSK- Low bargaining power for buyers
of pharmaceutical products, including
healthcare providers and consumers,
because GSK's products often address
critical healthcare needs, leading to
relatively inelastic demand. However,
increasing pressure from healthcare payers
and regulatory agencies to control costs
may influence pricing negotiations.
AstraZeneca- Buyers of pharmaceutical
products, including healthcare providers
and consumers, have limited bargaining
power. Increasing pressure from healthcare
payers and regulatory agencies to control
costs may influence pricing negotiations .
 1. 1. Swot Analysis – GSK plc
2. 2. Swot Analysis – Astra Zeneca plc
3. 3. PESTEL Analysis – GSK plc
4. 4. PESTEL Analysis – Astra Zeneca plc
5. 5. Porter’s Five Forces – GSK plc
6. 6. Porter’s Five Forces – Astra Zeneca plc
APPENDIX
 1.SWOT ANALYSIS GSK
STRENGHTS
Research and Development: They have made progress in respiratory, HIV, oncology as well as infectious diseases. £6.2bn invested
in R&D. Due to R&D investments vaccines and RNA technology improved, antimicrobial resistance (AMR) as well as antibody-drug
conjugates (ADCs) (GSK, Annual Report 2023).
Efficient Distribution network: GSK has enhanced its distribution channels both in India and globally, resulting in widespread
availability of its products. This expanded distribution network has led to increased sales and heightened brand visibility. Over 22000
suppliers which enables the company to efficiently introduce new products and maintain an improved distribution infrastructure
(GSK, Annual Report 2023).
Global presence: GSK operates in over 75 countries, reducing the risk of over-dependence on a few markets. GSK is a renowned
company all over the globe (GSK, Annual Report 2023).
Training and development: GSK invests significantly in the training and development of its workforce, necessitating highly skilled
employees. The company has over 70200 people who work for them and it allocates substantial resources towards training and
fostering career advancement, which ultimately becomes a valuable asset. Empowered with advanced skills, employees are motivated
to strive for greater achievements, thus contributing to the company's profitability (GSK, Annual Report 2023).
Newmarket performance: GSK has successfully entered and thrived in new markets. This expansion has been advantageous for the
company, enabling it to cultivate supplementary revenue streams and mitigate the impact of economic fluctuations in the countries
where it operates (GSK, Annual Report 2023).
OPPORTUNITIES
Growth by acquisition: In recent years, GSK has augmented its portfolio through acquisitions and partnerships. These strategic
moves enable GSK to bolster its growth trajectory and enhance its market presence. For instance, In 2023 GSK acquire Bellus Heath
for $2bn in Canada, in 2022 Solution F in France and Affinivax in US for $2.1bn (Tracxn, 2024).
New product launch: In recent times, GSK has introduced several new products in the metabolic and respiratory sectors. An
exemplary instance is the launch of Nucala, aimed at treating refractory eosinophilic asthma in adults. These product introductions
serve to enhance the company's portfolio and elevate its brand reputation (GSK, Innovation).
New technology: GSK possesses the most extensive vaccine platform technology portfolio within the industry. This capability
empowers the company to carefully select the most promising technological approaches, or combinations thereof, for the
development of new vaccines that were previously deemed unfeasible. Platform technologies like adjuvants, bioconjugation,
generalized modules for membrane antigen (GMMA), and adenovirus vectors can be utilized to create vaccines targeting various
pathogens, offering a customized approach that enhances the likelihood of success. This encompasses mRNA, which is a focal point
in development efforts, as it is perceived as a pivotal platform technology with significant potential for the future of vaccines (GSK,
Technologies).
Increase Opportunities in the Vaccine Industry: Given that pharmaceuticals constitute the primary focus of GSK's operations, the
company has the potential to expand its market presence by venturing into the development of vaccines targeting contagious diseases.
This strategic move would not only augment GSK's market share but also enhance brand trust among customers. (GSK, Innovation).
WEAKNESSES
Frauds and allegations: GSK has faced allegations of engaging in unlawful practices,
including promoting prescription drugs, false pricing accusations, misleading sales
practices, and failure to disclose safety information in specific countries. For instance, in the
US, there have been charges related to endorsing antidepressants not approved by the FDA
and $3 billion was the fine. Such occurrences have the potential to negatively impact the
company's brand reputation (Office of Public Affairs U.S. Department of Justice, 2012).
Generic competition: Several products and vaccines from GSK face competition in the
market, ranging from generic medications to flagship drugs. This competition impacts
GSK's sales performance (Competition appeal Tribunal, 2018).
THREATS
Intense competition: The involvement of GSK in both consumer and pharmaceutical
product sectors intensifies competition among other brands, resulting not only in
constrained market share but also in the emergence of price competition. Pfizzer Inc and
Johnson & Johnson are amongst its competitors (Global Data, 2024).
Government Regulations: In the pharmaceutical sector, government intervention is
prevalent and regulatory policies can significantly impact GSK's production and sales,
posing a significant threat to the company. The variation in laws across different countries
necessitates GSK to carefully adhere to the legal frameworks of each jurisdiction when
conducting its production activities (GSK, Codes, standards and reports).
Price controls: In numerous countries, drug pricing is regulated by local laws. For instance,
in India, a new pricing management strategy has been proposed, potentially leading to
decreased drug prices. Consequently, GSK is obligated to adhere to the pricing regulations
established by each country (GSK, Our position on Pricing and Access).
 2.SWOT ANALYSIS ASTRA ZENECA
STRENGHTS
Research and Development: The company places a strong emphasis on research and development (R&D),
reinvesting a substantial portion of its revenue into this area, which results in a notable level of innovation.
Invested over $10.9nb in R&D (AstraZeneca, Annual Report , 2023)
Global Presence: Operating in over 100 countries, AstraZeneca benefits from a diversified geographic
presence (AstraZeneca, About Us). AstraZeneca has established itself as a leader in biologic drugs, an area at
the forefront of biomedical research, offering potential for ground-breaking therapies. Moreover, the
development and distribution of the Oxford-AstraZeneca COVID-19 vaccine have notably elevated the
company's global visibility and esteem (AstraZeneca, Annual Report , 2023).
Established Brand and diverse Product Portfolio: Having established itself as a reputable brand renowned
for quality within the pharmaceutical sector, it enjoys a competitive advantage. The company provides a
diverse range of medications spanning Oncology, Cardiovascular, Renal & Metabolism, Respiratory &
Immunology, Vaccines & Immune Therapies, and Rare Diseases (AstraZeneca, Our Therapies).
Patent Portfolio: Possessing an extensive array of patents safeguards its investments and grants market
exclusivity for its primary drugs, ensuring sustained revenue streams over the long term. AstraZeneca boasts a
formidable product pipeline, with numerous drugs undergoing development across multiple stages, particularly
in oncology, cardiovascular, renal, metabolism, respiratory, and immunology sectors, indicating promising
prospects for future growth (AstraZeneca, Annual Report , 2023).
OPPORTUNITIES
Strategic Acquisitions and Partnerships: By acquiring smaller biotech firms or establishing strategic
partnerships, AstraZeneca can augment its research and development capabilities and product line-up. This
approach offers a swift means to enter new markets or access innovative technologies. In 2023 AstraZeneca
acquired Gracell Bio for $1.2 bn from China (to develop innovative cell therapies for cancer); and Icosavax for
$1.1 bn in US, (to improve respiratory infections), as well as CinCor in US for $1.3nb (Tracxn, Acquisitions by
AstraZeneca).
Product Pipeline Development: Innovating and pushing new drugs through the pipeline can lead to
marketable products that address unmet medical needs, particularly in specialized therapeutic areas.
AstraZeneca develops products in Oncology, Respiratory & Immunology, Vaccines and Rare Disease. Over 178
projects in the pipeline (AstraZeneca, Our Pipeline).
Advancements in Technology: Utilizing progress in biotechnology, artificial intelligence for drug discovery,
and data analytics can enhance the efficiency of research and development processes, providing a competitive
advantage. Furthermore, allocating resources towards the development of vaccines and preventive treatments
could yield novel products, exemplified by the triumph of their COVID-19 vaccine (AstraZeneca, Annual
Report 2023).
Emerging Markets: Venturing into emerging markets presents AstraZeneca with the chance to expand its
clientele, investing $300 million in a facility in Rockville, diversifying into therapeutic areas such as cancer
could unlock fresh revenue prospects. Fastest-growing top 10 company in Emerging Markets in 2023. In
China, the largest, Ukraine and Middle East expansion (AstraZeneca, Annual Report 2023).
WEAKNESSES
R&D Productivity: Despite having a robust pipeline, the conversion rate of research and development investment into
marketable products may be modest, which is a common risk faced by pharmaceutical companies.
Drug Patent Expirations: The loss of exclusivity on key drug patents can lead to a significant drop in revenue as
generic versions become available (AstraZeneca, 2021)
Regulatory Challenges: The pharmaceutical sector operates under strict regulations, and alterations in these
regulations or delays in drug approvals could adversely impact AstraZeneca's operations and financial performance.
Additionally, there are inherent legal risks, including ongoing litigation or potential legal challenges related to drug
patents or clinical trials, which pose considerable financial and reputational threats.
THREATS
Intense Competition: The pharmaceutical sector is fiercely competitive, marked by numerous companies striving to
introduce new drugs and generics, posing a challenge to AstraZeneca's market share and pricing influence.
Furthermore, the emergence of generic drugs as patents expire poses a substantial risk, potentially eroding
AstraZeneca's pricing strategies and revenue. Amongst the competitors are Pfizer and Johnson & Johnson (Global
Data, 2024, AstraZeneca plc: Competitors).
Regulatory Changes: Alterations in healthcare regulations, pricing regulations, and drug approval procedures within
pivotal markets can instigate ambiguity and potentially impede business operations or profitability. Additionally,
impediments to market access such as tariffs, trade hindrances, or political volatility may constrain entry into essential
markets, thereby impacting sales and growth prospects. Moreover, inadequate protection or enforcement of intellectual
property rights in certain countries might result in unauthorized replication or usage of AstraZeneca's products
(AstraZeneca, Working with government and policy makers).
Drug Pricing Pressures: AstraZeneca faces global pressure to lower drug prices, stemming from governmental
entities, insurance firms, and advocacy groups, potentially impacting its profit margins. Furthermore, being a
multinational corporation, AstraZeneca is exposed to exchange rate fluctuations, which pose risks to its financial
performance (AstraZeneca, Affordability, and pricing).
Reputation Risks: Adverse publicity concerning drug side effects, recalls, or legal matters can tarnish the brand image
and erode consumer trust. Moreover, global health crises, such as outbreaks of new diseases or pandemics, can divert
attention and resources to specific areas, potentially disrupting ongoing initiatives and impacting revenue streams.
3.PESTEL ANALYSIS GSK
Political
In China, GSK is currently under
scrutiny by the leader of the
Communist Party of China's
(CPC) anti-corruption watchdog
regarding allegations of
instructing subordinates to engage
in bribery to boost sales (Zhang,
2017). This follows a prior case in
which GSK agreed to a $20
million settlement to resolve
accusations of bribery involving
Chinese officials (Robinson,
2016).
In the United States, heightened
government intervention in
medical pricing has compelled
pharmaceutical firms to offer
significant discounts on their top-
selling medications. During the
Trump administration, further
reductions in Medicare services
are anticipated, prompting GSK to
enhance competitiveness in drug
pricing (Hirschler, 2016).
Ukraine War, Middle East
Tensions- shift to global order
GSK supports transparency and
accountability in public decision-
making and discloses lobbying
costs for EU and US activities.
They also outline criteria for
selecting Public Policy Groups
(PPGs) and list memberships in
trade associations on GSK.com
(GSK, 2022, Our position on
Political Advocacy)
Economic
Global Economic Conditions:
Brexit and Covid-19 pandemic
effected GSK sales.
Rising energy demand and
limited supply in Europe have led
to surging prices, driving up
inflation and posing immediate
challenges for both individuals
and businesses. Governments have
intervened heavily to safeguard
households, explore alternative
energy options, and develop
renewable energy infrastructure.
Medicines spending is expected
to return to pre-pandemic growth
rates by 2024, albeit with pricing
and value under increasing
scrutiny over the next few years
due to economic pressures and
geopolitical disruption (GSK,
Annual Report 2022)
Amid the pandemic, healthcare
spending rose with the
implementation of vaccination
programs by governments.
However, spending declined in
real terms during 2022/2023,
lagging behind inflation primarily
due to factors such as labour
market constraints. In response,
several major central banks raised
interest rates, further
exacerbating the challenge of
escalating costs for both
consumers and businesses (GSK,
Annual Report , 2023)
Social
In response to the aging global
population, GSK has transitioned
to a novel HIV treatment
approach. Conventional pill-based
therapies may present challenges
as individuals age. Recognizing
the societal necessity for
innovative treatment modalities,
GSK has made significant
investments to address emerging
market demands (Crow, 2017).
GSK have worked to help combat
the global epidemic Covid-19.
Working in partnership with the
World Health Organisation, GSK
are funding projects to improve
existing vaccines. The positive
publicity has resulted in GSK
maintaining a positive image of
social responsibility by consumers
(GSK, 2024).
Technological
GSK have unveiled their latest
investment in the field of
artificial intelligence. As part of a
$43m deal, GSK are using AI to
predict how drugs will behave to
save time and money on
unnecessary traditional tests
(Hirschler, 2017).
Furthermore, GSK's investment in
human genetics, functional
genomics, and AI/ML
technologies has resulted in a
doubling of the number of targets
in the early portfolio since 2017.
Moreover, it has raised the
proportion of these targets with
genetic support to over 70%
(GSK, 2022, GSK announces
expanded collaboration with
Tempus in precision medicine to
accelerate R&D)
Environmental Legal
Limiting Carbon footprint: GSK Following the Chinese corruption
aims to achieve net zero climate scandal, GSK has redirected its
impact by 2030. focus towards the $10 billion
Investment in renewable energy: market. However, in compliance
GSK aiming for 100% renewable with new Chinese regulations,
energy across their sites by 2030, GSK has made substantial
requiring investment in alternative investments in anti-bribery
energy sources. Governments can training for their sales
support by incentivizing representatives. They've also hired
alternative heat technologies. additional in-house compliance
Infrastructure upgrades will aid officers and discontinued
electric vehicle goals. By 2030, incentive programs to underscore
the sales fleet will be fully electric their commitment to restoring
Reducing water usage, their reputation in China (Ward &
preserving water quality, and Waldmeir, 2015).
promoting sustainable water Operating within a tightly
practices. Specifically, their aim regulated industry, GSK adheres
is to minimize active to a plethora of laws,
pharmaceutical ingredient (API) regulations, and compliance
discharge from manufacturing measures in all the countries
sites. By 2030, biopharma where it conducts business before
business pledges to achieve zero bringing its products to market.
impact API levels for all sites and Gsk has written standards for
major suppliers which they adhere such as GSK
Managing waste and materials, Code of Conduct, Working with
including ecodesign: GSK’s Third Parties as well as Public
commitment to reducing Policy Groups including industry
operational waste includes trade associations for their
eliminating single use plastics in advocacy work
their operations by 2030, Regulatory Approvals: One of
excluding those plastics which are the most significant legal factors
critical to product discovery and for pharmaceutical companies is
development, health and safety, obtaining approval from various
and meeting regulatory regulations related to drug safety,
obligations (GSK, 2023, Our advertising, and marketing is
position on Environmental essential to avoid legal issues and
Sustainability). penalties (GSK, 2022, Our
position on Political Advocacy).
 4. PESTEL ANALYSIS ASTRA ZENECA
Political
Regulation and Approval:
strict regulatory environments
and obtaining approvals for
new drugs from agencies like
the FDA (U.S.), EMA
(Europe), and MHRA (UK) is
need it.
Intellectual Property Rights:
Political decisions around
patent laws can affect
AstraZeneca’s revenue.
Extensions or restrictions on
patents directly impact the
duration of time a drug
remains exclusive to the
company before generics can
enter the market.
Trade Policies: Tariffs, trade
barriers, and international
trade agreements can influence
AstraZeneca’s operations,
especially considering they
operate globally and source
raw materials and distribute
products across borders.
Government Healthcare
Policies: healthcare reforms
aim to cut costs might
determine drug prices.
Vaccination Campaigns and
Public Health Initiatives:
Government-driven
vaccination or health
campaigns, such as the
widespread COVID-19
vaccination drive (AstaZeneca,
2024, Political Engagement &
Lobbying)
Economic Social-cultural
Global Economic Conditions: Demographics: By 2050, the
Economic downturns or recessions can global population aged 60 and
impact consumers’ ability to afford older will double to 2.1 billion.
medications, especially in countries The number of individuals aged 80
without comprehensive health and above is projected to triple
insurance. from 2020 to 2050, reaching 426
Interest rate changes affect million. This strains healthcare
AstraZeneca's capital costs, especially systems and diminishes the
with substantial debt, and impact working-age population
investment choices. Inflation increases (AstraZeneca Annual Report &
raw material, production, and research Form 20-F Information 2023).
costs, affecting margins and consumer Health Awareness and Access to
purchasing power. Operating healthcare: health and wellness
internationally involves multiple can influence pharmaceutical
currencies, with exchange rate demand as well access to
fluctuations impacting profitability healthcare. AstraZeneca continued
during profit repatriation or material to make a high-level contribution
sourcing. to the Partnership for Health
Economic Policies: Policies related to System Sustainability and
foreign direct investment, subsidies for Resilience (PHSSR).
the pharmaceutical sector, or economic Cultural Perception of
protectionism can influence Vaccination: Public attitudes
AstraZeneca’s operations in different towards vaccination particularly
countries. considering their involvement in
Cost of Research & Development: the COVID-19 vaccination
Economic factors like the availability campaign. Education and
of skilled labour, the cost of equipment, Information Availability:
and the infrastructure for research can Through Healthy Heart Africa
influence the economic feasibility of (HHA), trained more than 11,390
R&D projects. healthcare workers. Through the
Supply Chain Costs: post Brexit and Young Health Programme (YHP),
current economic situation, like fuel reached six million young people
price volatility, can influence the cost in 2023, and trained 385,000
of transporting goods, raw materials, people across 40 countries
and finished products. Additionally, the (AstraZeneca, FY and Q4 2023
economic stability of suppliers can results).
impact the supply chain’s reliability
(AstraZeneca, FY and Q4 2023
results).
Technological
R&D Innovations: Advances in
biotechnology, genomics, and
personalized medicine can lead to
the discovery of new drugs and
treatments. AstraZeneca uses AI to
transform the understanding o
disease biology, which drives
diagnosis at early stage
E-Pharmacy and Online
Distribution: improves
manufacturing and supply
operations, allowing for proactive
responses, increased automation
and robotics usage, and elevated
quality standards.
Data Analytics and AI: With the
rise of big data and artificial
intelligence, pharmaceutical
companies can analyse vast datasets
for drug discovery patient outcomes
and optimize clinical trials.
Telemedicine, Digital Health and
clinical trial innovations: Through
A.Catalyst Network, AstraZeneca
partnered with AI solution provider
Qure.ai to use their AI platform
qXR for detecting incidental lung
nodules in routine chest x-rays.
Technology is optimizing clinical
trial processes, from recruitment of
staff or patients to real-time data
monitoring, reducing the time and
cost of drug development
(AstraZeneca, Annual Report and
Form 20-F Information 2023).
Environmental
Limit Carbon Emissions: Through
Ambition Zero Carbon, company is on
track to reduce emissions from their
global operations by 98% by 2026
from a 2015 baseline. Energy
Consumption: in 2022 AstraZeneca
have increased focus on energy
efficiency and on-site renewables,
strengthened internal energy reduction
targets and in 2022 invested $26.6
million through our Natural Resource
Efficiency Fund together with other
central capital investments. In addition,
also reducing the emissions of their
legacy fleet and transitioning to electric
vehicles (AstraZeneca, 2024,
Sustainability).
Packaging: In 2022, all paper-based
packaging suppliers were 97.5% of
materials used were sourced
sustainably, achieving sustainable
packaging target.
Waste Management and Supply
Chain Integrity: The pharmaceutical
sector's complexity makes it
challenging to assess and prioritize
actions to mitigate impacts on nature.
Hazardous materials used in drug
production create waste streams that
are hard to manage sustainably. Cross-
sector collaboration with suppliers,
regulators, and industry peers is
essential for realizing a circular
business model
(AstraZeneca, Sustainability Report,
2022).
Legal
Adherence to regulations for
drug approvals, clinical trials,
import and export as well as
data protection and Privacy
such as GPPR in Europe for
securing and protecting data.
Legal Proceedings: litigation,
investigations, including
government inquiries, covering
product liability, commercial
disputes, intellectual property
infringement, patent validity,
antitrust regulations, and sales
and marketing practices.
Competition Compliance and
Antitrust Laws: to prevent
company from engaging in
practices that might stifle
competition in relation to
price-fixing or monopolistic
behaviour.
Intellectual Property (IP)
Rights: Company must protect
patents, trademarks, and other
IP rights to maintain
exclusivity over their drug
productions so as to ensure
profitability (AstraZeneca,
2024, Global policy Legal and
Intellectual Property)
Product Liability: The
company is involved in
different cases of allegations
such as injuries following
treatment such as Kidney or
gastric cancer (AstraZeneca,
Annual Report and Form 20-F
Information 2023).
 5. PORTER’S FIVE FORCES GSK
Threat of
Competitors
The number of the competition is
very high in the potential market,
and most of the business is
incorporating various strategies to
improve the organizational sales
volume as well as financial
profitability (Junior, King'oriah
and Senaji, 2020). The
management of GSK is also using
effective strategies to get more
competitive advantages in the
operating market. Pharmaceutical
companies are growing rapidly,
thereby producing higher sales and
driving downs the prices for long
term benefits. Because of this,
GSK is using strategy and
forethought to put itself in the
business environment for
sustainable and long term success
that leads to fulfilling
organizational objectives
effectively. GSK competes with
other pharmaceutical giants as well
as generic drug manufacturers.
Innovation, brand recognition, and
regulatory compliance are critical
factors influencing competitive
positioning in this highly regulated
and competitive market.
Threat of Substitutes Buyer Power
Complementary Alternative GSK may not encounter significant
Medicines (CAM) emerge as the threats from buyers, given the
key substitute product for GSK, substantial portion of its R&D
posing a notable threat due to their budget allocated to developing new
perceived affordability and safety patented items. Consequently,
compared to conventional GSK faces a low level of threat
medicine (Tatoglu et al., 2020). from consumers (Junior,
Customers increasingly gravitate King'oriah, & Senaji, 2020). With
towards traditional medications, high demand for pharmaceutical
attracted by their perceived lack of products and limited alternatives
side effects. With ongoing research for customers, coupled with
and development, the risk of positive word-of-mouth promoting
substitute products is heightened, quality products, the bargaining
potentially diminishing the power of buyers is reduced.
organization's overall sales Therefore, buyers do not present
volume. significant threats to the company.
Threat of New
Entrants
Entering the pharmacy and
healthcare industry entails
significant costs, leading GSK to
allocate less attention to these
forces. Developing new
technologies through research and
innovation is a costly and time-
consuming endeavour, making it
challenging for start-up
organizations to gauge market
demand accurately (Tatoglu et al.,
2020). Consequently, the
likelihood of new entrants is
moderate. Moreover, new
organizations must comply with
various eligibility criteria and
government regulations, such as
those imposed by the Food and
Drug Administration and federal
laws, to obtain government
licenses. Consequently, the high
cost of entry for new businesses
affords GSK greater advantages
and future opportunities.
Supplier Power
Primary suppliers encompass
manufacturers, transportation
companies, service providers,
research personnel, healthcare
professionals, and inspectors. Any
constraints or reductions in
material quality imposed by these
suppliers could pose significant
threats to GSK The organization
has a commendable track record of
treating its vendors well, meeting
their requirements (Tatoglu et al.,
2020), and offering competitive
compensation to its staff. With
alternative resource options and
raw materials, the organization
effectively mitigates suppliers'
overall bargaining power. To
moderate.
6. PORTER’S FIVE FORCES ASTRAZENECA

Threat of Threat of Substitutes Buyer Power Threat of New Supplier Power

Competitors Entrants
AstraZeneca faces low The threat of substitutes for The bargaining power could be The threat of new entrants to AstraZeneca's ability to negotiate
competitiveness in markets where AstraZeneca rises when alternative significant for this organization, AstraZeneca may be significantly with customers strengthens when
there are few competitors, services or products are particularly if it operates in a low or moderate if existing there is a higher concentration of
especially with a dominant market economically accessible from other concentrated market where regulatory policies pose significant customers. The psychological and
leader. Rivalry in the sectors, with low switching costs. suppliers hold more influence than barriers for newcomers entering economic costs associated with
pharmaceutical industry is high. If these alternatives offer buyers. This power strengthens the sector. New entrants require switching enhance customer
However, if AstraZeneca's products comparable performance and when switching costs for buyers substantial resources and capital bargaining power. According to
are distinct and cater to specific quality to AstraZeneca's products, are high. Suppliers' forward investment. According to Teramae Kumar et al. (2019), customer
sub-segments, this competitive the threat intensifies. However, integration into the market et al. (2020), this threat diminishes bargaining power is maximized by
force weakens. High switching when switching costs are high, weakens the organization's position when product differentiation is purchasing standardized products,
costs for customers, as noted by particularly if customers cannot by becoming competitors (Graham high, and customers prioritize price sensitivity, and market
Fitipaldi et al. (2018), intensify attain equivalent utility, et al., 2019). High product unique experiences. Furthermore, knowledge. Conversely, factors
rivalry among pharmaceutical AstraZeneca's threat diminishes differentiation by suppliers can the threat of new entrants may be that diminish bargaining power
companies targeting similar (AstraZeneca, 2024). further amplify their bargaining low if the psychological cost of include lower customer
markets. AstraZeneca competes power. However, for AstraZeneca, switching for customers is concentration, indicating a
with other pharmaceutical giants as this force may be mitigated if its exceptionally high, and established dispersed customer base
well as generic drug suppliers are diverse and offer brands have loyal customer bases. geographically.
manufacturers. Innovation, brand undifferentiated goods. Given Additionally, this force may be
recognition, and regulatory AstraZeneca's cost-sensitivity and deterred if access to distribution
compliance are critical factors market expertise, the threat of channels is restricted. Emerging
influencing competitive forward integration is minimal. biotech firms and generic drug
positioning in this highly regulated manufacturers pose some level of
and competitive market. competition.
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