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AstraZeneca

AstraZeneca SWOT
HealthManagementMarketingSWOT & PESTLE TrendingWriting

SWOT Analysis of AstraZeneca – Innovative Medicine Producer

by Shamsul June 10, 2022

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.

 
 

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PESTEL Analysis of AstraZeneca – Innovative Medicines Producer

by Shamsul June 10, 2022

PESTEL Analysis of AstraZeneca Plc

 

The PESTEL analysis is an excellent strategic planning tool to review the external business factors of an organization such as Political, Economic, Social, Technological, Environmental, and Legal. These factors affect the macro business environment of a company like AstraZeneca Plc. Let’s read the PESTEL analysis of AstraZeneca.

These factors can also impact the other players operating in the healthcare sector. A company like AstraZeneca Plc can take a competitive advantage in the market by analyzing these points. They are also helpful for boosting the overall level of profitability.

PESTEL analysis of AstraZeneca Plc provides complete information about current challenges present in the healthcare sector. The company is highly exposed to these challenges and competitors. For example, a profitable company can’t produce encouraging results in those regions where the political system and economic situation are unstable.

Without further wait, let’s start the PESTEL analysis of AstraZeneca Plc.

 

Political Factors | PESTEL Analysis of AstraZeneca

In determining the factors that can affect the long-term growth of AstraZeneca Plc, political factors like corruption level, political stability, and political framework can play a huge role. It is crucial to analyze the political factors of a specific country or market in which AstraZeneca Plc is operating. Currently, the healthcare company is operating in more than a dozen markets/countries, so it is open to different challenges and threats in the region. These systematic risks can disrupt the overall functioning of the company in a particular region. The following factors should be analyzed thoroughly before entering a new market,

  • Importance of political parties in the country and influence of these parties on the healthcare sector.
  • Political stability.
  • Risk of invasion from the military.
  • Corruption levels in the government departments, especially in the healthcare sector.
  • Interference of influence of government officers on healthcare business.
  • Legal proceedings regarding contract enforcement.
  • Tariffs, trade restrictions, and other limitations.
  • Protection of intellectual property rights by legal institutions.
  • Preferred trading countries and their political system.
  • Laws related to healthcare, especially antitrust laws.
  • Price wars and regulations in the country.
  • Tax rates.
  • Minimum wage and overtime legislation.
  • Working hours and timetable in the healthcare sector.
  • Employee benefits.
  • Safety regulations in the healthcare sector.
  • Labeling of products and related requirements.
 

Economic Factors | PESTEL Analysis of AstraZeneca

The impact of economic factors is also big on the company. There are several risks associated such as inflation rate, foreign exchange, savings rate, and interest rate. These factors determine the average investment and average demand in a country or business environment. Economic factors also increase competition in the market. AstraZeneca Plc can exploit different economic indicators like purchasing power of consumers, growth rate, and others for determining the economic growth of the company in a specific region, market, or country. Here are some vital economic factors that must be analyzed,

  • Type of financial and economic system in the specific country or region.
  • Economic stability.
  • The intervention of government.
  • Stability of currency and exchange rates.
  • The efficiency of economic markets in the country.
  • Infrastructure standard.
  • The competence level of employees.
  • Comparative advantages.
  • Literacy level in the country.
  • Overall productivity and labor costs.
  • Economic recession.
  • Interest rates.
  • Inflation.
  • Economic growth.
  • Unemployment rate.
 

Social Factors | PESTEL Analysis of AstraZeneca

The way of doing things and overall culture of the society can also upset the business operations of AstraZeneca Plc in a particular country. People’s leisure interests, attitudes, and beliefs also have a huge impact on the business. AstraZeneca Plc must understand the market dynamics by analyzing the behavior of customers or demographics in the region also. Being a healthcare company, AstraZeneca Plc should review the given social factors,

  • Skill level of people.
  • Demographics.
  • Power composition, hierarchy, and class structure in the country or society.
  • Education level of people.
  • Culture such as social conventions and gender roles.
  • Entrepreneurial skills.
  • Attitudes toward environmental consciousness and health.
  • Leisure interests.
 

Technological Factors | PESTEL Analysis of AstraZeneca

It is slightly difficult for companies to stay technological advance all the time. Technology is an ever-evolving thing and it requires a lot of investment. We are taking the example of transportation here. It has been growing with the passage of time and several transportation services such as Uber and Lyft have disrupted the business of common taxi business.

Indeed, every company is moving towards automation and there is a lot of scope in the healthcare segment for new technology and automation. This fast-changing technology can affect the business of AstraZeneca Plc in the long run. By exploiting the latest technologies, AstraZeneca Plc can take a competitive lead and can also make its business profitable. Below, we have curated imperative technological factors,

  • Latest technological advancements by the competitors of AstraZeneca Plc.
  • Product offering and impact of technology on this factor.
  • Cost structure and impact of technology on it.
  • Value chain structure and impact of technology on it.
  • Technological diffusion rate.
 

Environmental Factors | PESTEL Analysis of AstraZeneca

Every country has specific norms and environmental standards. Today, people are highly conscious of environmental factors. Any violation of climate laws can impact the revenue stream and overall reputation of the organization in the market. Being an international healthcare company, AstraZeneca Plc should evaluate the liability and environmental laws of every country in order to run the business smoothly. Many countries are giving a tax break to companies that produce renewable energy sources.

Before launching a new business in the market or venturing into any market, AstraZeneca Plc must scan the environmental standards, needed to run the business in that country. Some of the standards that AstraZeneca Plc should study,

  • Climate change.
  • Renewable energy sources.
  • Recycling.
  • Weather.
  • Air pollution.
  • Water pollution.
  • Laws regarding environmental pollution.
  • Waste management, especially in healthcare.
  • Attitudes toward eco-friendly and greener products.
 

Legal Factors | PESTEL Analysis of AstraZeneca

In numerous countries, the legal institutions and frameworks are not so influential. So, protecting intellectual property rights, copyrights, and patents is not easy in those countries. Companies like AstraZeneca Plc must review these factors carefully in order to run their business operations smoothly. By evaluating such factors, a company can enhance its competitiveness as well as profitability in the market. The managers at AstraZeneca Plc should consider the following legal factors before entering a new region,

  • Data protection.
  • Employment laws.
  • Safety and health laws.
  • Copyrights.
  • Consumer protection.
  • E-commerce.
  • Antitrust laws.
  • Discrimination laws.
 
 

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