GSK Consumer Healthcare PESTLE Analysis

Published by MBA Skool Team, Last Updated: April 04, 2021

PESTLE Analysis of GSK Consumer Healthcare analyses the brand on its business tactics. GSK Consumer Healthcare PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as GSK Consumer Healthcare, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the GSK Consumer Healthcare PESTLE Analysis:

Political Factors:

The political factors in the GSK Consumer Healthcare PESTLE Analysis can be explained as follows:

GSK Consumer Healthcare is one of the largest private companies in the healthcare sector. It is one of the leading OTC and oral care medicines manufacturers. There are a large number of political factors which impact its business in different countries. The political stable environment makes it easy for a global company to operate its business. For e.g. governments across the world have clearly announced healthcare as one of the major pillars for economic revival suffering from COVID-19 effect. A lot of new initiatives by the governments in the health sector have been made. In India, FDI in the health sector has been increased significantly. These policy changes have a tremendous impact on a global firm. This company is also into vaccines and legal medicine manufacturing. The govt. incentives and subsidies for treatment, health insurance and Mediclaim, taxes on important medical equipment and price ceiling on stents etc. affects the business indirectly. It is important to take opportunity and grow its business in line with government rules and guidelines.


Image: Wikimedia


Economic Factors:

Below are the economic factors in the PESTLE Analysis of GSK Consumer Healthcare:

The economic factors such as inflation rate, recession, income, foreign exchange rate can impact the sale of necessary OTC medicines, vaccines.

The inelastic nature of demand for these essential medicines boosts the sales for this firm. Due to COVID-19, people focus on their health and hygiene has increased to a large extent, GSK Consumer Healthcare has an opportunity to cater the consumer needs in the form of vaccines and required medicines. The global economic conditions have a major impact on this firm as import and export tariffs, trade restrictions on medicines, exchange rate and risks etc. decide the selling price for consumers in different markets. This healthcare firm needs to change its strategy according to the macro and micro economic factors to become profitable


Social Factors:

Following are the social factors impacting GSK Consumer Healthcare PESTLE Analysis:

Society’s culture and the set norms impact the GSK Consumer Healthcare revenue. The demographics including age, gender, income, geographical location, education level etc. have a role to play in changing strategies accordingly. The lifestyle and the class structure in the society are also important social factors which need to be considered. Even the rising attitude among consumers for good healthcare decreases the sales for medicines. In some families it is a tradition to give homemade medicines or ayurvedic, Unani medicines instead of allopathy sold by the company. It is important for this firm to generate awareness for their medicines through right functional strategies. Moreover, the ingredients in their medicines and drugs like alcohol etc. need to be taken care of in all the different market segments. It can find untapped opportunities in the market with its competitive advantage. All these factors together can severely impact the sales for GSK Consumer Healthcare.


Technological Factors:

The technological factors in the PESTLE Analysis of GSK Consumer Healthcare are mentioned below:

GSK Consumer Healthcare has a competitive advantage in the healthcare sector with its new evolving technological innovations in the industry. It continuously spends on technological transformation of Healthcare with AI and machine learning. It is involved in growing medical research and development. IOT is also helping this company reach and explore the benefits of interconnectivity and the rich patient data that these technologies can provide. This company is also selling its medicines and drugs on E-commerce platforms. It is also boosting its research and development pipeline with advanced technologies to help them deliver transformational new medicines and vaccines for patients.

This pharma company needs to track and trace technology in removing counterfeits and in enabling data centralization for opening up new opportunities.


Legal Factors:

Following are the legal factors in the GSK Consumer Healthcare PESTLE Analysis:

The legal factors of local and international markets are very important for GSK Consumer Healthcare. All laws related to consumer protection, health and safety laws, safe working environment, IPR and patents etc. are important for its business operations in different nations. All the related laws and regulations should be taken care of while operating in any country. Any illegal drug selling can put this firm in legal difficulties. Government set legal guidelines should be strictly adhered to while selling any medicine or drug in a country. And if a certain type of drug is banned in any country, then it should not be sold there. It is very important to come out with legal alternatives and solutions to avoid the sales being hampered. The legally right image of GSK will improve the brand equity and consumers loyalty among consumers and further help in generating sales and revenue. The legal factors play a very important role as this can severely impact the business.


Environmental Factors:

In the GSK Consumer Healthcare PESTLE Analysis, the environmental elements affecting its business are as below:

GSK Consumer Healthcare is focused on the environment in addition to generating revenue. It is working towards reducing carbon footprint and pollution through various measures in its business. It is using 100% renewable energy for electricity supply and E-vehicles for transportation. It is also making its processes efficient through use of digitalization and reducing emissions. This firm has a competitive advantage over many other firms in the industry with its positive environmental impact.

Consumer behavior is changing today towards sustainability keeping in mind the scarcity of resources. The customer loyalty and sales increase with this USP. Even the bio waste and packaging need to be environmentally friendly for increasing profit margins.

To conclude, the above GSK Consumer Healthcare PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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