PESTEL and SWOT Analysis of AstraZeneca pharmaceuticals

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This is a study about come ining a new market of AstraZeneca which is one of the universe ‘s greatest pharmaceutical fabrication companies. Bing an international director of this company, this study clearly shows the selling program of the company.

1.0 Introduction of AstraZeneca pharmaceuticals

AstraZeneca pharmaceutical is a quickly taking turning company that has subdivisions in several states. This company was formed on 6 April 1999 through the amalgamation of Astra AB of Sweden and Zeneca Group PLC of the UK – two companies with similar science-based civilizations and a shared vision of the pharmaceutical industry. It is a company to the full focused on individual intent, to enable the people life changing status to populate better lives. It has a portfolio of merchandises for major diseases like malignant neoplastic disease, cardiovascular, GI, infection, neuroscience, respiratory and redness. The slogan of the company is to construct a important difference to patient throughout great medical specialties that bring make good to for patients and add value for stakeholders and society.

Merchandise market features

AstraZeneca is an advanced goaded biopharmaceutical planetary concern that supplies their merchandises in more than 100 states. In many states, it manufactures the merchandises while besides export merchandises to states where they do non hold fabrication operations. With the purpose to be success, AstraZeneca has developed flexible selling schemes to market and distributes its merchandises in local countries of emerging market. The company focuses the accomplishments and resources in six of import countries of wellness attention. It discovers, develops, industries and markets prescription pharmaceutical on the countries which include cardiovascular, malignant neoplastic disease, infection, GI, respiratory and redness. AstraZeneca is supplying medical specialties for these universe ‘s serious diseases.

Now a twenty-four hours, people of every state is enduring from different type of bacterial infection. The decease rate in developing state due to inflectional diseases is besides increasing due to miss of appropriate medical specialty. There is a high demand of antibiotic medical specialty around the universe in developing states every bit good as in developed states.

Performance of AstraZeneca

The public presentation at AstraZeneca is committed to accomplish the fiscal and strategic aims at the same clip as keeping the nucleus values as the figure one precedence in numbering to convey the best merchandises to market all over the universe. Research and Development is a cardinal competitory advantage for this company. Without R & A ; D AstraZeneca could non hold become the planetary prima biopharmaceutical company. The gross of the company in 2009 was increased by 7 % every bit good as new emerging markets concerns grew strongly by 12 % gross in changeless currency clip. There was improved in efficiency throughout the organisation and some excess additions within other income. Although company gross growing is decelerating down due to uninterrupted force per unit area on health care costs and pricing every bit good as huge competition from generic medical specialties, the demand for wellness attention will deduce the company future growing remain strong. ( AstraZeneca Annual study 2009 )

2.0 International selling planning

Harmonizing to McDonald, selling planning is “ a structured manner of placing a scope of options for the company, of doing them explicit in authorship, of explicating selling aims which are consistent with the company ‘s overall aims and of scheduling and bing out the specific activities most likely to convey about the accomplishment of the aims. “ ( L S Walsh, International Marketing, 3rd edition )

2.1 Internal and External environment

It is besides needed to take into consideration those internal factors near to the unit that have a direct impact on the unit and AstraZeneca strategic marketing.A

These will include: A



AstraZeneca survive on the footing of run intoing the demands, wants and supplying benefits for their clients. Failure to make so will ensue in a failed concern scheme.


A Using the right staff and maintaining these staff motivated is an indispensable portion of the strategic planning procedure of a AstraZeneca. Training and development dramas an indispensable function specific in service sector marketing in-order to derive a competitory border. The success is due to the 62,000 people they employ in their concerns.


A It is the duty of the AstraZeneca to run into the outlook of Shareholder and perceptual experience. This company is seeking its best to carry through its scheme so that they can run into shareholder’sexpectation.A


When covering with the selling environment it is of import for a company to go proactive. By making so, they can make the sort of environment that they will thrive in and can go more efficient by marketing in countries with the greatest client potency. It is of import to put equal accent on both the macro and microenvironment and to respond consequently to alterations within them.

External scheme

The PEST analysis examines alterations in the market place caused by Political, Economic, Social, Technological factors. Political is political alteration whether it be through the European Union or the UK, from one party to another in control. Economic influences are the degree of involvement rates and the degree of rising prices. Social alteration involves altering attitudes and life styles. Technological alteration creates chances to put in new merchandises cutting costs.

Political factors

The authorities can hold a major influence on the eating out industry, as all Torahs are passed through parliament. The types of Torahs that can impact the eating out industry are, duties on imports, a possible rise in value added revenue enhancement and new wellness and safety Torahs, and besides there is the possible debut of Torahs from the European Union. So authorities ordinances and legal issues have a direct impact on the manner AstraZeneca operates.

In consequence of turning consciousness of the environmental effects, U.K Government is be aftering actions to guarantee air power reflects its environmental impacts. Proposals are emerging for a revenue enhancement on air power, fuel and VAT on air tickets. Government ‘s revenue enhancement policies and determination about the addition in the gasoline monetary values have affected the purchasing power of the persons in U.K.

All of the above can do a rise in costs so monetary values may lift in order to go through the costs onto the consumer.

Economic factors

AstraZeneca is besides affected by economical factors nationally and globally. Whether an Economy is in a roar, recession or recovery will besides impact consumer assurance and behaviour.

Economic factors have affected the buying power of possible clients, and the province of the internal/external economic system in the short and long-run. As a consequence the company needs to see:

aˆ? Economic growing

aˆ? Interest rates

aˆ? Inflation rate

aˆ? Budget allotment

aˆ? The degree of rising prices

aˆ? Employment degree per capitaA

Interest rates are the lowest they have been for 40 old ages and this affects the rate of consumer disbursement on goods and services. The rate of involvement affects the economic system through its influence on aggregative demand, the higher the rate of involvement, the lower the rate of aggregative demand. A autumn in involvement rates normally means that assets rise in value ; this means that consumers become wealthier.

Social factors

Social factors will include the demographic alterations, tendencies in the manner people live, work and believe and cultural facets of the macro environment. These factors affect client demands and the size of possible market:

aˆ? Population growing rate

aˆ? Age distribution

aˆ? Internal/external accent on safety

aˆ? Internal/external attitudes to alter

aˆ? What is the stakeholder outlook of the unit? A

Technological factors

The complexnesss of accomplishing concern success through increased efficiency, effectivity and fight, combined with advanced applications of modern engineering, has heightened the consciousness of both engineering and concern directors towards more strategically oriented attacks for planning and direction of AstraZeneca.

SWOT Factors

SWOT factors refer to the strength, failings, chance and menaces of the company.

The chief strengths of AstraZeneca are its trade names. It has an ability to present the potency of bing and future merchandises through the power and range of a combined planetary gross revenues and selling resources. It has a broad spread category coverage in cardinal therapy country such as cardiovascular and respiratory diseases due to complementary nature of merchandise. It is focused on invariably developing new merchandises to outlooks. Since it is a planetary industry it is a member of many administrations all over the universe.

The universe population has doubled in the last 50 old ages from three billion to over six billion and is expected to make nine billion by 2050. In add-on, the figure of people who can entree the highest criterions of health care continues to increase, peculiarly among the aged, who represent a lifting proportion of populations in developed states and go on to offer chances for the industry to provide an spread outing figure of patients who can profit from medical specialties.

Presently, the menace of new feasible rivals in the planetary industry is non really significant. The chief challengers of the company are GlaxoSmithKline plc, Merck & A ; Co.Inc, Novartis AG. The menace of replacements, nevertheless, is a really existent menace. The UK, and particularly London, has been a premier mark of the spiritual fundamentalists and terrorist outfits. London and other metropoliss in the UK have been often under high qui vive since9/11 in general and after the war in Iraq in peculiar.

2.3 Selling ends and aims

The chief aims of the company is to be the universe ‘s largest pharmaceuticals company and to construct a important difference to patient all the manner through great medical specialties that bring make good to for patients and add value for stakeholders and society. Hiking attempts to beginning betterment from outside the company and working in partnerships across all facets of R & A ; D to broaden the base for a success.

Market analysis

Now a twenty-four hours, people of every state is enduring from different type of bacterial infection. The decease rate in developing state due to inflectional diseases is besides increasing due to miss of appropriate medical specialty. The demand for wellness attention is more in every state so the company ‘s hereafter is bright and growing remains strong. Population are increasing and people are populating longer. There is a high demand of antibiotic medical specialty around the universe in developing states every bit good as in developed states. Although this company has its market in different states, there are more states where this company can derive its market. So, I have a mark to supply medical specialties for inflectional diseases in new market. Merrem/Meronem ( meropenen ) is an extremist wide spectrum injectable antibiotic for a broad assortment of serious infections, including meningitis and pneumonia.

To run into the ends of the company even though it has its market in more than 100 states, being an international director of the company I would wish to come in into other new market. So, first of all I am traveling to research the concern environment of the state. I have chosen four states Singapore, Bangladesh, Sri lanka and New Zealand. By making PEST analysis of these states I would take the best 1 for my new market.



Political factors

Economic factors

Socio cultural factors

Technological factors

Demographic factors


Political status is stable as there is parliament democracy, English jurisprudence is accepted

Highly developed and free market economic system and GDP rate is besides higher than other developed states.

Mix of civilization and instruction is the chief instrument

Excellent transit, communicating system

Population is less than other three contries, entire country is 756950sqkm


political status is non stable,

Poor economic status due to recession

Different types of linguistic communications and faiths, wellness criterion is bettering

Modern communicating system and advanced route system

7th highest population in the universe

Sri lanka


Developing state, estimated GDP growing rate is 3.5 %

Assorted linguistic communications and faith, multi cultural states

Sophisticated transit & A ; communicating services

Population is estimated 20,238,000

New Zealand

Free market economic system, can vie globally

Modern, Prosperous and high criterion of life

Rich in civilization, different spiritual

Excellent technological factors services

Population is 43677000.

Beginning: Wikipedia of all states

Harmonizing to PEST analysis, I found New Zealand and Singapore are the strong state than Bangladesh and Sri lanka in every facet. Among these two states I am traveling to take New Zealand for new market for my merchandise.

New Zealand is one of the comfortable and high populating standard states. Political environment is stable so there is no trouble for the concerns. Since 99 % of people are educated they are cognizant about their wellness and they demand for better health care. The mean life anticipation is 80 old ages, as people live longer they suffer from different diseases.

3.0 Market Entry Strategy

There are different methods of come ining an abroad market. Expansion of concern into international market can be done through following mechanisms which are discussed below.


Joint Venture ( franchising, licensing )

Foreign Direct Investment

Export: It is a traditional and good established method of market entry to foreign markets. This method is less expensive as we do n’t hold to set up new company in other market but have to happen distributer for my merchandise.

Joint venture: In this type the two or more companies in different states agree to execute the concern and portion the net income and bear the losingss. Nowadays this method is celebrated as there is low hazard and load is divided. Joint venture can be done in two ways: licensing and franchising

Licensing: It is a broad scope of understandings associating to the sale or leasing of industrial or commercial expertness by one party to other in returns for valuable considerations.

Franchising: it is a signifier of licensing by which the franchiser provides a standard bundle of constituents or ingredients together with direction and selling services. The franchisee provides capital, market cognition and personal engagement.

Foreign Direct Investment: It is the direct ownership of installations in the targeted state. It is the 100 % investing in that state. It can be done by acquisition of bing company in the targeted state.

Advantages and disadvantages of market entry methods





Less expensive, minimise investing, efficiency as there is speed entry.

Limits entree to local information and market, transit cost may be high, hazard of exchange rate of currency

joint venture

Low hazard, less investing required, overcomes ownership and cultural distances

Conflict between two parties, differences in civilizations and direction manners

Foreign direct investing

Greater cognition of the market, 100 % control, gives the company to the full protection

Higher hazard than other methods, deficiency of managerial accomplishments every bit good as, expensive,

4.0 Implementing selling program



Monetary value

Topographic point