Case study C: GSK, a combination too far?
1- Derive 3 opportunities and three hazards for GSK by first producing the PESTEL analysis from the macro-environment around the pharmaceutical drug industry. (9 points)
5. PESTEL examination of the pharmaceutical drug industry:
Politics: Since the creation of healthcare insurance, companies have to conform themselves to two kinds of systems: 1) The universal program applied for model in Italy, with fewer demand in new technologies. 2) The very selective anglo-saxon system which is looking for high technologies, excluding people who pays for treatments. As we know the industry have to work on growing political give attention to healthcare. Without a doubt, global governments are looking for healthcare savings particularly in this time of economic crisis. Furthermore, as the European Union is trying to harmonize healthcare between their 27 people, pharmaceutical companies will have to bring in reference in pricing and also to deal with raising pressure on pricing.
Financial: Due to the context of global economic crisis, the main risk for the industry stands in the unwillingness of consumers to spend on health care. Like most in the sectors, pharmaceutical industry deals with a decrease in its development, even if the industry perspectives will be positive. To emphasize: pharmaceutical expansion is following the GDP growth.
Cultural: As the over-65's take in 4 period more than various other citizens, the aged inhabitants represents the opportunity for the pharmaceutical corporations which will have to respond to increasing demand out of this part of the inhabitants. Moreover, patients are more and more aware of remedies and disorders and are expecting more openness about drugs and cost policy. Hence, the companies will need to face with pressure upon customer service. Ultimately, the market is likely to grow with increasing health issues like the overweight issue that has become essential in Traditional western countries within the past decade.
Legal: The market lives with many regulatory and legislative restrictions, specifically about integrity. Companies also tackle with all the issue of intellectual property rights as well as the generic drugs. Moreover, they have to cope with the increase of trial within sufferers are involved. Sooner or later, it's hard to rationalize the market because of the two-system business of the demand.
Environmental: While the global environmental agenda keeps growing up, pharmaceutic companies have the opportunity to include eco-objectives within their approach and create Corporate Interpersonal Responsibility applications. Indeed, the recent community community recognition permits to companies anxious to admiration even more the planet to improve their very own corporate image.
Technological: Due to new technologies, the pharmaceutical drug industry has many digital opportunities concerning treatment options or communication with people. It allows direct to patient advertising and marketing and requires reactive service features. Furthermore, companies will go upon focusing on new technologies just like the biotechnologies. the macro-environment encircling the pharmaceutic industry. PESTELEXAMPLES
вЂўHarmonization of healthcare systems across The european countries
вЂўPressure from federal government regarding businesses that make an effort to make savings on the development of healthcare products Ethical pharmaceutical firms want to minimize the ratio of the price structure allowed to manufacturing of products as it represent 25% and increase the rate of potential.
вЂўGlobal Economic crisis
вЂўMergers and acquisition have become prevalent practice in many industries вЂўReduction in the average income
вЂўPopulation adjustments: aging, embrace obesity in western countries/ under nutrition in developing countries, and so forth вЂўCustomers are better informed (internet, etc . )
вЂўEmerging markets are getting to be more and more important
вЂўDifferences among health insurance owners inside a nation and between different countries (access to...
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