Strategic Analysis report on pharmaceutical sector company - Essay

Strategic Analysis report on pharmaceutical sector company - GlaxoSmithKline (gsk) - Essay Example GlaxoSmithKline Plc. (GSK) is a British pharmaceutical multinational corporation dealing in various drugs, biologics and vaccines. The company has its headquarters in Brantford, London. In the year 2014, GSK was ranked number six among the world’s largest pharmaceutical company. It only trails Johnson & Johnson, Hoffmann La Roche, Novartis, Sanofi and Pfizer. This ranking was done in terms of revenue, making it one of the largest corporations in Britain. GSK came into existence in the year 2000 following a merger between SmithKline Beecham Plc. and Glaxo Wellcome (Anon, 2003). While disruptions in manufacturing and the unfavorable market conditions in key geographical areas have affected its performance, it has always taken necessary steps and strategies to ensure future success. The UK pharmaceutical market is the sixth largest in the world. The market is driven by over 35,000 general practitioners. This implies that it is an open market. However, the leading companies like GSK have stronger presence compared to the smaller companies. According to Towse (2014), the growth in the market has been decelerating in the last three years. Despite this trend, there is still a high worldwide demand for versatile and quality products. Climate has emerged to be a key issue in the industry, with stakeholders striving to come up with products that do not have detrimental impacts on health and the environment. Being an open market, little regulation is usually witnessed. The main economic regulation, however, comes through the Pharmaceutical Price Regulation Scheme (PPRS), which limits the rate of returns associated with medicine sales. The intended rate is that which is equal to the overall UK rate. The pharmaceutical industry has generally performed well and managed to preserve various incentives to invention. There are, however, some current issues that are facing the industry and having an impact on the overall performance. Being a dynamic sector, various