Gsk Case

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1- Derive three opportunities and three threats for GSK by first making the PESTEL analysis of the macro-environment surrounding the pharmaceutical industry. (9 points)

* PESTEL analysis of the pharmaceutical industry:

Political: Since the creation of healthcare insurance, companies have to conform themselves to two kinds of systems:
1) The universal system applied for example in France, with less demand in new technologies.
2) The very selective anglo-saxon system which is looking for high technologies, excluding people who can pay for treatments.
As we know the industry have to work on growing political focus on healthcare. Indeed, global governments are looking for healthcare savings especially in this time of economic crisis. Furthermore, as the European Union is trying to harmonize healthcare between its 27 members, pharmaceutical companies will have to introduce reference in pricing and to deal with increasing pressure on pricing.

Economic: Due to the context of global economic crisis, the main threat for the industry stands in the reluctance of consumers to spend on healthcare. Like most of the sectors, pharmaceutical industry copes with a reduction in its growth, even if the market perspectives are positive. To emphasize: pharmaceutical growth is following the GDP growth.

Social: As the over-65’s consume 4 time more than other citizens, the aged population represents an opportunity for the pharmaceutical companies which will have to respond to increasing demand from this part of the population. Moreover, patients are more and more aware of treatments and diseases and are expecting more transparency about drugs and price policy. Thus, the companies will have to face with pressure on customer service. Eventually, the market is likely to grow with increasing health concerns like the obesity issue which has become crucial in Western countries…...

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