GlaxoSmithKline (GSK) SWOT Analysis

GlaxoSmithKiline is mainly a Nigerian Pharmaceutical company whose main products include health care products. The headquarters of the company is located in Lagos, Nigeria. The mission statement of the company is “to improve the quality of human life by enabling people to do more, feel better and live longer.” Glaxo Smith has a name for top quality and innovative medicines and medical products around the world. The main strategies of Glaxo smith are to go globally and giving more value to its customers, and these strategies in fact are the main factors contributing to its success.

Strengths

• Research and development on new drugs, vaccines and diseases is one of the biggest strength of Glaxo Smith as the company is doing a lot and spending a lot on research and development projects. Especially a lot is being done by the company regarding the diseases which are set as a main priority by world health organization (Max, Chuck, 2010). 

• Strong generation of cash and profits which means that they will be able to give a good return to shareholders and also generate a value, profit and goodwill for their stock holders which will definitely strengthen the company a lot.

• The products are sold and available in over 150 countries, which clearly shows a big market share of the company globally.

• Stated as one of the best 100 companies in “working mother magazine”.

• The provision of finances and health facilities to non-profit organizations and giving for charitable purposes also increases the credibility of the company in general.

Weaknesses

• The controversies of Glaxo Smith like the issue of Avandia drug may have damaged the company’s credibility in future as it has been doing in past, because a lot of controversies are already visible as we see the company’s history (Lüscher, Landmesser & Ruschitzka, 2010).

• The recent fines imposed by US department of justice as a civil and criminal penalties were also a big setback to the company. The improperly made drugs show that there may be a problem in company’s research and quality departments.

• The sudden decline in sales due to present financial constraints which are still having their affects globally also resulted in firing of large number of employees.

Opportunities

• A vast experience in health and pharmaceutical industry will definitely be giving them a competitive edge on others.

• The company has huge profit returns, which means a lot will be available for new product development and other investment opportunities which may also come out as a competitive advantage for them to move forward.

• Large charitable grants for poor countries and areas may also give a big edge to the company as the good-will for the company in the eyes of customers and general public may increase.

Threats

• The pharmaceutical companies now days are facing difficulties to find new drugs as much has already been discovered, so compared to old times it is difficult getting new inventions and innovations. So a large budget on research and development may be a threat

• A large number of health and pharmaceutical companies may also be a threat to Glaxo smith.

• A big settlement of complains and charges resulting in huge fines to Glaxo smith may also be a big threat to the company in future because it may be giving a lot of finances in settling the charges against it as it has been doing in future (Nissen, 2010).

• The present global crisis and financial decline in overall economy has also greatly affected the company’s financial conditions.