SWOT Analysis of AstraZeneca
AstraZeneca is a leading British-Swedish multinational biotechnology and pharmaceutical company. It is one of the most reputable names in the healthcare sector. The firm is present in different countries and millions of people are using its services and products. Today, we are going to conduct the SWOT analysis of AstraZeneca by identifying its strengths, weaknesses, opportunities, and threats. By analyzing these factors, we can easily find out the problems that Astrazeneca is facing in the market.
SWOT is a useful tool to analyze the internal as well as external business factors of a company like AstraZeneca. It helps to find innovative ways to take lead in the competitive environment. These factors can influence the business operations of Astrazeneca hugely. So, what are you looking for? Let’s begin!
SWOT Analysis of AstraZeneca
Company Name: AstraZeneca
Founded: April 6, 1999
Headquarters: Cambridge, United Kingdom
CEO: Pascal Soriot (Oct 1, 2012-)
Type: Pharmaceuticals
Sector: Pharma and Healthcare
Tagline: We put patients first. We play to win.
Unique Selling Proposition: AstraZeneca is an international, integrated, and innovation-driven biopharmaceutical company.
Customers: Cardiovascular, respiratory diseases, oncology, gastrointestinal, and neuroscience.
Target Consumers: Doctors, hospitals, and healthcare professionals offering treatments for the above-mentioned diseases.
Revenue: 37.42 billion dollars (2021)
Net Income: 0.112 billion dollars (2021)
Strengths of AstraZeneca | SWOT Analysis of AstraZeneca
- Strong Brand Image:
AstraZeneca has a strong brand image and recall value in the market. It is a market leader in the Biotechnology and Drugs sector. As a result, the company is taking premium charges for its products and services from customers. They are taking advantage of this thing in a better way. In short, they have a huge competitive edge over other Biotechnology and Drug companies.
- Extensive Product Offerings:
The company has an extensive range of products and services as compared to competitors. This has helped AstraZeneca to penetrate different markets and customer product segments without any problem. This has also enabled the company to boost its revenue flow.
- Strong Market Position:
In its industry, the company has a stronghold and market position. Undoubtedly, it is a market king in the Biotechnology and Drug industry. It is fulfilling the demand of new as well as existing customers effectively.
- The Success of New Products:
The product portfolio of Astrazeneca is really extensive. It has permitted the company to develop and launch new products successfully.
- Geographic Presence:
Factors like associates network and dealer network are two important strengths of AstraZeneca. They are efficiently delivering their products to different locations without any issues. In this way, the company has maintained a competitive challenge in the market.
- Robust Revenue Models:
In recent years, the company has entered several businesses inside and outside the healthcare. As a result, they generated billions of dollars every year in terms of revenue or profits. These side businesses of Astrazeneca are also its strength.
Weaknesses of AstraZeneca | SWOT Analysis of AstraZeneca
- Local Dominations and Niche Markets:
The growth chances in the Biotechnology and Drug sector are disappearing day by day. It creates weakness for the brand because it is not able to exploit those chances. So, most of its investments are becoming less and less profitable.
- Increasing Cost of Replacing Experts:
It takes so much money to replace existing specialists within the company. Only a few people are responsible for the company’s success and knowledge base. Replacing these experts could be difficult for AstraZeneca in the current situation.
- Low Investments in Services:
The company is investing less amount of money into customer-oriented products and services. This will give competitors a big opportunity to offer competitive products with an affordable price tag. It is imperative for Astrazeneca to strengthen its research and development, especially in user-centric products and services.
- Declining Revenue:
There is no doubt about it that Astrazeneca is operating in such a competitive environment. This competitiveness is putting pressure on the revenue stream of the company. The company should focus on its bestselling products in order to maintain its profitability in the market.
- Loyalty Among Suppliers:
The overall loyalty level of suppliers is very low. This has created supply chain issues in different sectors of the company. Consequently, Astrazeneca can face supply chain issues in the future if they didn’t improve their relations with supply chain partners.
- Decreasing Market Share:
As compared to other industries, the Biotechnology and Drug industry is growing at such a fast pace. Its overall market share is declining day by day. It is crucial for the company to thoroughly analyze the latest trends to know what customer wants.
Opportunities for AstraZeneca | SWOT Analysis of AstraZeneca
- Local Partnerships:
There are so many growth opportunities available for AstraZeneca in the Biotechnology and Drug industry. They should make new partnerships with local players in order to enhance their local position. The local companies can provide the grass-root expertise to the company that will help the firm to boost its international sales.
- Rapid Expansion:
When compared to other economies, the US economy is getting better with the passage of time. The company can think about expanding its business into the US region. AstraZeneca has a substantial amount of experience to operate in such competitive markets. This will prove highly beneficial for the company’s expansion, growth, profitability, and revenue stream.
- Technological Innovations:
Many companies are exploiting the latest technologies to improve their industrial efficiency. AstraZeneca should use technological innovations in different departments such as the supply chain to make it more effective and reliable. As a result, the company can easily invest in new customer products significantly.
- Customer Preferences:
These days, it is almost impossible to predict customer purchasing preferences. Their spending power has decreased due to the growing disposable income and plenty of alternate options. They love to try new products without any fear. Some customers are price conscious so they can’t afford the premium products of AstraZeneca. The company can introduce cost-effective products in different niches to gain the attention of price-conscious customers.
- Lowering Cost of New Products:
The company is selling its products through third-party retailers which helps the company to reduce the cost of new products. They are also selling their products online. The company can exploit both methods in a useful way to retain its market competitiveness. They can successfully launch new products as well without spending too much.
- Inflation Rate:
The decreasing inflation rate is bringing stability to the Biotechnology and Drug industry. This will help the company to facilitate customers. The customers will love to buy and consume its products.
Threats to AstraZeneca | SWOT Analysis of AstraZeneca
- Growing Demand for Technology:
Small players in the Biotechnology and Drug industry are exploiting the latest technologies to streamline their operations. They are hurting the company’s business at a local level. It is hard for such a big company to fulfill the requirement of growing technological expertise. Moreover, the technological framework in some countries is really weak.
- Competitors:
When it comes to product innovation, Astrazeneca has strong expertise. But, its competitors are giving tough competition in this sector. They are also developing more effective products and services. In short, they are snatching the customers of AstraZeneca. This could affect the brand recognition and revenue of AstraZeneca.
- The tension between China and US:
The ongoing conflict between China and US can also impact the long-term sustainability of the company. The trade tension between these countries is bringing instability to the political and economic system. Due to this reason, they can’t expand their business in these regions, especially in China.
- Legal Actions:
The company can face legal actions from the countries in which it operates. Different countries have different legal systems and regulations. So, violation of these rules and regulations can lead to strict legal action against the company. This could impact the overall strength of the company in the competitive market. It is important for the company to venture into developing markets carefully as they can create trouble for the company in the form of slower growth.
- Varying Political System:
The overall political system of the world is changing rapidly, especially in the US and China. Recent events like Brexit and other related factors are also hurting the company’s business in some countries. The company doesn’t have enough presence in the Middle Eastern region. AstraZeneca should carefully analyze the international as well as the local market before entering.
- Ongoing Challenges in Healthcare:
There are so many current challenges in the Biotechnology and Drug industry. It is almost impossible to avoid these challenges for AstraZeneca. On the other hand, they don’t have a strong presence in rural markets. Moreover, most of its products are expensive that are not affordable for middle-class groups. These challenges can immensely hurt the profitability and revenue flow of AstraZeneca.
Final Thoughts | SWOT Analysis of AstraZeneca
It is evident from this study that Astrazeneca is a market leader in the Biotechnology and Drugs industry. The company has so many strengths that enable them to generate higher revenue every year. However, they also have some weaknesses as well. It is crucial for Astrazeneca to exploit upcoming opportunities in order to increase its market share. They are facing some stiff threats from competitors, but the company can take lead by offering affordable products and services. In general, AstraZeneca is very huge in terms of revenue and size.
Need Help or Advice in Content Management:
Do you want more advice? Do you have good practices to share? Express yourself in the comments.
Moreover, if you want any help to write content to drive more traffic and boost conversions, get in touch through Contact our team?
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? You can contact me through my Freelancer.com profile also. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
Read More:
PESTEL Analysis of AstraZeneca – Innovative Medicines Producer
