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Case study on GSK for the coursework of this module.
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Case study on GSK for the coursework of this module. Covers the main points that enable GSK to be the top pharma company.
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COMPANY REPORTGlaxoSmithKline
, INTRODUCTION
GlaxoSmithKline (GSK) is a British multinational pharmaceutical company. The
headquarters of GSK are in London. Established in 2000 by merger of Glaxo Wellcome and
SmithKline Beecham.
The report highlights business strengths which make the company productive and prosperous
in the long run and its weakness. It talks about the wide variety of products that the company
has to offer and also informs us about its rival competitors. At the end we come to know
about the effective marketing strategies which the company develops to survive and progress
in the challenging market. (brittanica.com, 2020)
Business Strengths:
Successful Financial Performance
GSK reported revenue of £33,754 million in FY2019 as compared to £30,821 million in
FY2018, an annual growth of 9.5%. Exponential growth in revenue was driven by new
inventions and increment in the sales of Shingles and Meningitis vaccines. In FY2019, the
operating margin was 20.60% as compared to 17.8% in 2018. GSK’s net profit margin
increased from 11.8% in FY2018t to 13.7% in FY2019.
Strong and stable financial performance of the company enables it to give high returns to its
shareholders and devote its large funds towards growth initiatives.
33.2 33.5
31.5 31.6
30.07 29.78 29.5
27.2 26.4 27.3 28.08
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Competitive advantage through strong focus on R&D
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