Case of GLAXOSMITHKLINE
Since the creation of medicine many years ago, the health sector has known evolutions. First it was something unknown and based on false ideas, with the time, it became a science and today, it is one of the biggest sectors in the world. Pharmaceutical industry is part of it.
Nowadays, the appearance of new virus like the flu H1N1, is the opportunity for Pharmaceuticals companies to develop themselves. In fact, this sector, as all health’s sector, is in constant evolution. Big firms are managing this industry; GlaxoSmithKline is one of them. This very competitive environment, frame by legal restrictions, need to be well plan. Strategy is very important for all competitors.
First we will present the company GlaxoSmithKline, then we will analyze the sector’s environment and, to finish, we will present the company’s strategy.
PRESENTATION OF THE COMPANY
a) Facts and figures
GlaxoSmithKline is the second largest drug manufacturer in the world and the largest in Europe, in term of revenue. In 2000, its turnover was 18.08 billion GBP; in 2008, it was 24.35 billion GBP with a net profit of 4.7 billion GBP. In 2009, they presented sales revenue of 28.4 billion GBP with a net profit of 5.7 billion GBP. The company employs over 101 000 persons in 117 different countries. Its Headquarter is in England. The following chart shows the repartition of its revenue by region:
b) Company’s activities
GlaxoSmithKline production is divided into five main categories: cosmetics and toiletries, hot drinks, OTC healthcare, packaged food and soft drinks. This following rating shows, in terms of retail value, which category represents the biggest market share (in the world):
1. OTC healthcare = 3.42% 2. Cosmetics and toiletries = 1.03% 3. Hot drinks = 0.55% 4. Soft drinks = 0.46% 5. Packaged goods = 0.13% (only for Asia Pacific)
GlaxoSmithKline activities can also been