GlaxoSmithKline (GSK) is the world's third largest pharmaceutical company based in London. It has a portfolio of products for major disease areas such as asthma, cancer, infections and mental health. The pharmaceutical industry in India is valued at $10 billion and growing at 9% annually, making it the 4th largest by volume. GSK aims to grow a diversified global business, deliver more innovative products, and simplify its operating model as it is a large, complex organization with over 96,000 employees worldwide. It has leading positions in respiratory diseases and HIV with many trusted brands such as Sensodyne, Horlicks, Voltaren and Panadol.

1. Glaxo Smith Kline
By, Siddaram.Tegnoor

2. GSK’S Introduction
GlaxoSmithKline often abbreviated to GSK, is a global pharmaceutical,
Biologics, vaccines and consumer healthcare company headquartered in
London, United Kingdom.
 It is world’s third largest pharmaceutical company measured by
revenues ( after Johnson and Johnson and Pfizer).
 It has a portfolio of products for major disease areas including
asthma, cancer, virus control, infections, mental health, diabetes and
digestive conditions.

3. Overview of Industry
 Pharmaceutical industry has been witnessing phenomenal growth in
recent years, driven by consumption level in the country and string
demand from export markets.
 Pharmaceutical industry in India is estimated to be worth US$10
Billion, growing at an annual rate of 9%.
 In world rankings, the domestic industry stands fourth in terms of
volume and 13th in terms of values.
 The rankings in value terms may also be reflection of low prices at
which medicines are sold in the country.
 A highly fragmented industry, the Indian pharma industry is estimated
to have over 10000 manufacturing units as given by Organization of
Pharmaceutical Producers Of India.

4. Overview of Company
GlaxoSmithKline plc is a public limited company incorporated on 6th December
1999 under English law. Its shares are listed on the London Stock Exchange and the
New York Stock Exchange.
On 27th December 2000 the company acquired Glaxo Wellcome plc and SmithKline
Beecham plc, both English public limited companies, by way of a scheme of
arrangement for the merger of the two companies.
GSK and its subsidiary and associated undertakings constitute a major global
healthcare group engaged in the creation, discovery, development, manufacture and
marketing of pharmaceutical and consumer health-related products.
GSK has its corporate head office in Brentford London and has its US headquarters
in Research Triangle Park, North Carolina, with operations in some 120 countries,
and products sold in over 150 countries.

5. Objectives of Glaxosmithkline
 Grow a diversified global business
Deliver more products of value
Simplify the operating model – (GSK is a large and
complex organisation)
Company slogan- ”Do more, feel better Live longer”

6. Size of the company:
 GlaxoSmithKline is a Public limited Pharmaceutical, Biotechnological,
consumer goods company.
 GSK is world’s sixth largest pharmaceutical company. Single largest
company in United states.
 Headquartered at Brentford, LONDON.
 GSK key people are
Chairman- Sir Philip Hampton
CEO- Sir Andrew witty
 GSK’s products includes Vaccines, oral healthcare , nutritional
products, over-the –counter medicines.
 Total Revenue of company is £23.923 billion(Euros) with operating
income of £10.322 billion (2015) , and net income of £8.372
billion(2015)
 There are 96,575 employees with 12500 in R&D within GSK as per
2015 with offices in over 115 countries.

7. Portfolio of Glaxosmithkline
 GlaxoSmithKline has leading global positions in
respiratory diseases & HIV with a portfolio of
innovative and established medicines.
 GSK has a broad portfolio of 39 pediatric,
adolescent adult & travel vaccines.
 GSK has a portfolio of some of the world’s most
trusted and best selling brands which include
Sensodyne, Horlicks, Voltaren & Panadol.
 GlaxoSmithKline has the most comprehensive
vaccines portfolio in the Industry.

8. SWOT Analysis
STRENGTHS
Strong sales and marketing
infrastructure.
More profitability
More ability to service debts
WEAKNESS
Expenses are greater
Assets use inefficiently
OPPURTUNITIES
Market growth
More liquidity
Greater attraction for debtor
THREATS
Greater ROE of competitor
Impact of generic erosion to
sales.
Recommendation
Cost needs to be controlled by either going for forward or backward
integration.
Total turnover and operating turnover should be increased to level of
Industry.

9. PORTER`S FIVE FORCES ANALYSIS:
GLAXOSMITHKLINE PLC
GlaxoSmithKline is a pharmaceutical company firm adjudged the world's sixth-largest
pharmaceutical company after Johnson and Johnson, Novartis, Hoffmann-La Roche,
Pfizer, and Sanofi.
MARKET STRUCTURE:
Oligopoly: This verdict is based on the concentration ratio of the few large firms like GSK
that collude to control the market and the high level of restrictions encountered by new
Firms.
THE ANALYSIS
This report is based on the FIVE PORTER ANALYSIS of GlaxoSmithKline; considering the
industry in which it exists and analyzing how much of a threat are the different industry
components are to the firm.

10. The five forces are as propagated by Dr Porter:
1. Threat of new entrants
 GSK spent £3.4 billion on their core R&D in 2013.
 VERDICT: Threat of new entry Is LOW.
2.Bargaining power of buyers :
 Switching cost is low and there is almost seamless ease to substitutes from
similar firms. There is relative price performance of goods as competing
firms incur similar production cost.
 The other substitute are the generic drugs and complementary alternative
medicine.
 VERDICT: Threat of substitute is HIGH.

11. The five forces are as propagated by Dr Porter:
3.Bargaining power of suppliers
 The NHS is the major buyer of pharmaceuticals and they wield so much
power when it comes to price determination.
VERDICT: Bargaining power of buyers HIGH.
4.Threat of substitute products or services 4
GlaxoSmithKline poses the threat of backward integration to suppliers.
Most pharmaceutical companies own their own manufacturing plant. This implies
that suppliers seldom change prices unreasonably.
VERDICT: Bargaining power of suppliers is LOW
5.Rivalry among existing firms
The competition is strategically aggressive with top players vying for supremacy
in addition to the pressure of coming up with the “next top drug”
VERDICT: Industry rivalry is very HIGH.

12. By, Siddaram Tegnoor
MBA I year,
VTU Kalburgi.
Thank you..