ADVANCED STRATEGIC MANAGEMENT

TERM PROJECT

ORGANIZATION STRATEGIC CASE

SEMESTER FALL-2024; MBA

GROUP MEMBERS: SANA KHALID, ARIFA

FAROOQ, MARIA MUSHTAQUE

ORGANIZATION:
GLAXOSMITHKLINE PAKISTAN
LIMITED (GSK PAKISTAN)

Table of contents:
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1.Introduction…. 3
2.Strategy Formulation… 4
Analysis of vision and mission statement… 4
Industry analysis… 7
Blue ocean strategy… 10
GSK competitive advantage… 11
SWOT analysis… 13
EFE… 16
IFE… 17
CPM matrix… 17
2b- Strategy Selection…18
SWOT Matrix…18
SPACE Matrix… 20
BCG Matrix…19
IE Matrix… 22
Grand Strategy Matrix… 23
QSPM… 24
3.Strategy Implementation… 25
4.Strategy Evaluation… 31

1. INTRODUCTION:
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Founded in 2001, GlaxoSmithKline (GSK) Pakistan is a division of the world's preeminent
healthcare company. The corporation, which has its headquarters in Karachi, is a major force in
Pakistan's consumer healthcare and pharmaceutical industries. As a global leader in biopharma,
GSK’s purpose is to unite science, technology, and talent to get ahead of diseases together. With
over seven decades of service in Pakistan, GSK has become synonymous with trusted quality
medicines and vaccines, catering to the health needs of more than 200 million patients across the
country.
GSK Pakistan's Board of Directors is responsible for the company's corporate governance,
overseeing its activities, strategy, risk management, and financial performance. The board
comprises a diverse group of professionals with extensive experience in various fields:

 Lai Kuen Goh: Chairperson and Non-Executive Director.

 Erum Shakir Rahim: CEO & Executive Director.
 Hasham Ali Baber: CFO & Executive Director.
 Mehmood Mandviwalla: Non-Executive Director.
 Simon Foster: Non-Executive Director.
 Muneer Kamal: Independent Director.
 Maheen Rahman: Independent Director.

Key milestones: Over the years, GSK Pakistan has achieved several significant milestones that
underscore its position as a leader in the pharmaceutical industry. The company has developed
an extensive manufacturing and distribution network, with three state-of-the-art facilities located
in Karachi, ensuring consistent and reliable supply across the country. It has established
leadership in key pharmaceutical categories, excelling in terms of volume, value, and
prescriptions generated. Furthermore, through its Global Supply Chain (GSC) division, GSK
Pakistan annually produces over 420 million medicine packs, a testament to its commitment to
meeting the healthcare needs of millions of patients nationwide.

Business and Product Portfolio: GSK Pakistan boasts a diverse portfolio that addresses a wide
range of therapy areas, including anti-infectives, vaccines, specialty medicines, general
medicines, dermatology, respiratory care, HIV and oncology etc. The company has built a strong
reputation with its flagship brands, which include Augmentin, Velosef, Amoxil, Dermovate,
Clobevate, Betnovate, Calpol, and Ventolin. These products highlight GSK Pakistan’s
commitment to delivering high-quality medicines and solutions that improve patient health and
well-being.

GSK Pakistan’s manufacturing operations are supported by three state-of-the-art facilities

located in Karachi: West Wharf, F-268 SITE, and Korangi. These facilities adhere to
international standards, ensuring consistent quality and reliability in the production of medicines
and vaccines.

2- STRATEGY FORMULATION:

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 2.1 ANALYSIS OF VISION STATEMENT:

The Vision
" To become one of the world’s most innovative, best-performing and trusted
healthcare companies.”

Evaluation of vision Using Collins & Porras (1996) Model:

1.Core Ideology:

The core ideology comprises two elements: Core Values and Core Purpose.

1.1 Core Values

Definition: The essential and enduring principles that guide the organization’s behavior.

 Analysis:
o The vision highlights values like innovation, performance excellence, and trust.
o These reflect principles that are deeply embedded in GSK’s operations, including
its focus on R&D, delivering quality healthcare products, and maintaining ethical
practices.
o The values are relevant, enduring, and directly tied to the company’s identity.

1.2 Core Purpose

Definition: The fundamental reason for the organization’s existence beyond just making profits.

 Analysis:
o The purpose of becoming a trusted and high-performing healthcare leader aligns
with the larger goal of improving global health outcomes.
o It addresses societal needs, such as combating diseases and enhancing patient
care.

Strength of Core Ideology: The vision effectively encapsulates GSK’s foundational principles,
resonating with both internal stakeholders and external audiences.

2. Envisioned Future:

The envisioned future comprises two elements: Big, Hairy, Audacious Goal (BHAG) and Vivid
Description.

2.1 Big, Hairy, Audacious Goal (BHAG)

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Definition: A clear, compelling, and ambitious long-term goal that motivates and unites the
organization.

 Analysis:
o The aspiration to be "one of the world’s most innovative, best-performing, and
trusted healthcare companies" qualifies as a BHAG.
o It is ambitious, pushing the company to achieve global recognition while
addressing innovation and trustworthiness.
o However, the statement could benefit from greater specificity. For example,
outlining measurable milestones (e.g., leadership in specific therapeutic areas)
would make the goal more tangible.

2.2 Vivid Description

Definition: A vibrant and engaging picture of what it will look like to achieve the BHAG.

 Analysis:
o The vision lacks a vivid description of what being the "most innovative, best-
performing, and trusted" would entail.
o It does not articulate details such as groundbreaking advancements, market
leadership metrics, or impacts on patients and healthcare systems.

Strength of Envisioned Future: While the BHAG is ambitious, the lack of a vivid and detailed
description weakens the motivational power of the vision.

Based on the evaluation of GSK Pakistan's vision statement, while it has strengths, such as
highlighting innovation, performance, and trust, it lacks specificity, vividness, and a patient-
centric focus.

Mission:
" "We are a global biopharma company with a purpose to unite science, technology and talent to
get ahead of disease together. We aim to positively impact the health of 2.5 billion people over
the next 10 years. Our bold ambitions for patients are reflected in new commitments to growth
and a step-change in performance. We are a company where outstanding people can thrive."

Evaluation of Mission according to the 9-component Model of Mission Statement:

1. Customers
The mission statement indirectly identifies its customers as "patients" by emphasizing health
impact. However, it does not explicitly address healthcare providers, governments, or other
stakeholders who may be critical customers.

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2. Products or Services
The statement lacks a direct mention of its core offerings, such as medicines, vaccines, or
biopharma solutions. This omission reduces clarity about what GSK delivers.

3. Markets
The mission references GSK’s global reach but does not specify focus areas like Pakistan or
other emerging markets.

4. Technology
The statement emphasizes uniting "science and technology," showcasing GSK’s commitment to
leveraging cutting-edge advancements in biopharma.

5. Survival, Growth, and Profitability

GSK’s "bold ambitions for patients" and commitment to a "step-change in performance" reflect
aspirations for growth and competitive success, implying a focus on financial soundness.

6. Philosophy
The statement highlights the company’s purpose of uniting science, technology, and talent to
combat disease, reflecting ethical priorities and patient-centric aspirations.

7. Self-Concept (Distinctive Competence)

GSK’s emphasis on "uniting science, technology, and talent" suggests its distinctive competence
lies in innovation and collaboration, but this could be articulated more explicitly.

8. Public Image
The mission reflects social responsibility by stating the goal of improving the health of 2.5
billion people over 10 years. However, it does not mention specific commitments to
environmental or community well-being.

9. Employees
The statement explicitly values employees by emphasizing GSK as "a company where
outstanding people can thrive," indicating a strong commitment to their growth and well-being.

In line with GSK Pakistan's basic beliefs, the mission and vision statements successfully convey
the company's emphasis on healthcare improvement. They could be improved, though, to
highlight core products and specific markets.

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2.2- INDUSTRY ANALYSIS: PORTER’S FIVE FORCES MODEL:

The FIVE PORTER ANALYSIS of GlaxoSmithKline; considering the industry of GSK are;
The five forces are as follows:
1. Threat of new entrants
2. Bargaining power of buyers
3. Bargaining power of suppliers
4. Threat of substitute products or services
5. Rivalry among existing firms

1- Threat of New Entrants:

I. Capital Requirements:
The pharmaceutical industry requires substantial investment in research and development
(R&D), manufacturing facilities, and compliance with regulatory standards. GSK Pakistan, with
its established infrastructure and financial resources, holds a significant advantage, making it
challenging for new entrants to compete.
II. Economies of Scale:
GSK Pakistan benefits from economies of scale due to its large production volumes, which
reduce per-unit costs. This cost advantage makes it difficult for smaller or new companies to
compete effectively.
III. Absolute Cost Advantages:
GSK’s well-established relationships with suppliers and access to proprietary technology enable
it to produce at lower costs compared to potential new entrants.
IV. Product Differentiation:
GSK Pakistan offers a diverse portfolio of trusted and well-known brands such as Augmentin,
Calpol, and Ventolin. This strong brand equity creates customer loyalty and raises the barrier for
new entrants to establish themselves in the market.
V. Access to Distribution:
With its extensive distribution network and established relationships with healthcare providers,
GSK Pakistan ensures its products reach even the remotest areas. New entrants would face
significant challenges building comparable distribution capabilities.
VI. Legal Barriers:
The pharmaceutical industry in Pakistan is heavily regulated by the Drug Regulatory Authority
of Pakistan (DRAP). Compliance with stringent regulations and securing approvals for new
drugs can be time-consuming and costly, posing a significant entry barrier.
VII. Retaliation:
Given its market dominance, GSK Pakistan can retaliate against new entrants by leveraging its
resources to reduce prices, increase marketing efforts, or launch new products, deterring
competition.

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2- Industry rivalry: The pharmaceutical industry in Pakistan is highly competitive, with a
mix of local and multinational players vying for market share. Below is an analysis of industry
rivalry through key factors:

I. Concentration: The pharmaceutical market in Pakistan has a moderate to high level of

concentration, with a few key players like GSK Pakistan, Abbott, Sanofi, and local
manufacturers like Getz Pharma and Hilton Pharma dominating the landscape. GSK Pakistan
holds a significant market share due to its trusted brands and extensive product portfolio.
However, the presence of strong competitors increases the intensity of rivalry.
ii. Diversity of Competitors: The industry features a diverse mix of competitors, ranging from
global giants with extensive R&D capabilities to local companies with cost advantages. While
multinational corporations compete on innovation and quality, local manufacturers often
leverage lower pricing to capture market share. This diversity intensifies competition as firms
adopt varied strategies to gain a competitive edge.
iii. Product Differentiation: GSK Pakistan differentiates itself through its well-established
brands, high-quality products, and strong reputation. However, generic drug manufacturers offer
similar products at lower prices, challenging differentiation. In some therapeutic areas, products
are less differentiated, leading to price-based competition, further fueling rivalry.
iv. Excess Capacity and Exit Barriers: Pharmaceutical manufacturing involves significant fixed
costs, and underutilized capacity can lead to price wars. Additionally, high exit barriers, such as
sunk costs in specialized facilities, regulatory compliance costs, and the impact on a company's
reputation, discourage firms from leaving the market. This results in sustained competition, even
during periods of reduced demand.
v. Cost Conditions: While multinational companies like GSK Pakistan invest heavily in R&D
and compliance, local players often operate with lower production costs due to cheaper labor and
materials. This creates pressure on GSK to manage costs efficiently while maintaining product
quality, further intensifying rivalry.

3- SUBSTITUTE COMPETITION:
Substitute products pose a moderate to high threat in the pharmaceutical industry. Below is an
analysis of substitute competition for GSK Pakistan:

I. Buyers’ propensity to substitute: Patients and healthcare providers in Pakistan have access to a
wide range of generic medicines and alternative therapies, which are often cheaper than branded
products. Local manufacturers offering generics pose a significant substitute threat.
GSK Pakistan’s well-known brands (e.g., Augmentin, Calpol, Ventolin) foster strong loyalty
among healthcare professionals and patients, reducing the likelihood of substitution in critical
therapeutic areas. However, price-sensitive buyers may still switch to lower-cost alternatives.
ii. Relative prices and performance of substitutes:
Price: Generics produced by local manufacturers are typically priced significantly lower than
branded medicines, making them attractive substitutes for cost-conscious buyers.
Performance: While GSK Pakistan’s products are known for their quality and efficacy, generics
often provide comparable therapeutic outcomes at a lower cost. In areas where performance
differences are minimal, price becomes the deciding factor, increasing the threat of substitution.

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Alternative Therapies: Non-pharmaceutical substitutes, such as herbal remedies and homeopathic
treatments, are popular in Pakistan and may appeal to specific market segments. These
alternatives, though less effective in some cases, pose additional competition, especially in rural
or traditional communities.

4- Bargaining power of buyer:

 Price sensitivity

I. Cost of Product Relative to Total Cost: Medicines and vaccines are often a significant portion
of a patient’s healthcare costs. For GSK’s products, particularly branded medicines, the
relatively higher prices increase price sensitivity among buyers, especially in a price-conscious
market like Pakistan.

ii. Product Differentiation: GSK Pakistan offers highly differentiated products backed by
research, quality assurance, and brand equity. Trusted brands such as Augmentin and Calpol
reduce buyers’ price sensitivity as these products are seen as more reliable and effective
compared to generics or alternatives.

iii. Competition Between Buyers: Buyers, including hospitals and pharmacies, often compete to
stock well-known brands to attract patients. This reduces their power as they depend on GSK’s
strong product portfolio to meet patient demand.

 Bargaining power:

I. Size and Concentration of Buyers vs. Suppliers: In Pakistan, the pharmaceutical market has a
large number of individual buyers (patients) and small-scale pharmacies, which limits their
bargaining power. However, institutional buyers, such as government healthcare programs and
large hospitals, have more negotiating leverage due to their purchasing scale.
ii. Switching Costs: Switching costs for buyers are generally low for commoditized or generic
drugs but higher for branded products with strong reputations, like GSK’s portfolio. This reduces
the ability of buyers to switch, especially for critical medicines.
III. Buyers’ Information: Buyers (patients) often rely on healthcare providers to make purchasing
decisions, which weakens their bargaining power. However, institutional buyers (e.g.,
governments or large healthcare organizations) are well-informed about alternatives and pricing,
enhancing their negotiating strength.
IV. Buyers’ Ability to Backward Integrate: The ability of buyers to backward integrate is low.
Hospitals and pharmacies are unlikely to produce their own medicines due to high regulatory and
capital barriers. This limits their power against established pharmaceutical companies like GSK
Pakistan.

4- Bargaining power of suppliers:

 Price sensitivity

I. Cost of Product Relative to Total Cost: Raw materials, including Active Pharmaceutical
Ingredients (APIs), excipients, and packaging materials, constitute a large portion of GSK’s total

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production costs. This high dependency on raw materials increases the sensitivity to supplier
pricing, as fluctuations can impact the company's profitability.

ii. Product Differentiation: Many raw materials, especially APIs, are highly specialized and
differentiated. Suppliers of unique or patented ingredients have significant power due to the
limited availability of alternatives. However, for commoditized inputs, GSK Pakistan can source
from multiple suppliers, reducing price sensitivity.
iii. Competition Between suppliers: Competition among suppliers is moderate. While
commoditized raw materials have multiple sources, specialized API suppliers are fewer in
number. GSK’s global procurement network allows it to leverage competitive pricing where
possible, but for specialized inputs, supplier power remains high.

 Bargaining power:

I. Size and Concentration of Buyers vs. Suppliers: The pharmaceutical raw materials market is
often concentrated, with a few large suppliers dominating the industry. For high-quality or
patented APIs, GSK Pakistan relies on these concentrated suppliers, increasing their bargaining
power.
ii. Switching Costs: Suppliers generally face low switching costs as they can sell raw materials
to other pharmaceutical companies. This increases their power since they are not heavily
dependent on a single buyer like GSK Pakistan.
III. Supplier’s Information: Suppliers have detailed information about the pharmaceutical
industry, including GSK’s requirements and market dynamics. This knowledge allows them to
price strategically, further enhancing their bargaining position.
IV. Supplier’ Ability to Backward Integrate: Suppliers have limited ability to backward integrate
into the production of finished pharmaceutical products due to regulatory barriers, high capital
requirements, and lack of expertise in formulation and marketing. This limits their power against
established manufacturers like GSK Pakistan.

2.3 STRATEGY CURVE & BLUE OCEAN OPPORTUNITIES:

STRATEGY CURVE ANALYSIS:

A strategy curve, sometimes referred to as a value curve, shows how GSK Pakistan's goods stack
up against those of rivals in important areas including cost, quality, innovation, customer
support, and brand loyalty.
1) Cost: Because GSK's drugs are of greater quality than local generics, their prices are a
little more.
2) Quality: To differentiate itself from less expensive rivals, GSK places a strong emphasis
on product quality and safety.
3) Innovation: The business regularly introduces cutting-edge healthcare solutions because
its strong emphasis on research and development.
4) Customer service: GSK has a competitive advantage thanks to its wide distribution
network and robust customer support services.
5) Brand Loyalty: Consumers have a high level of confidence and familiarity in products
like Sensodyne and Panadol.

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This curve identifies possible weaknesses in pricing and accessibility in rural locations while
highlighting GSK's strengths in quality, innovation, and brand loyalty.

BLUE OCEAN OPPORTUNITIES: GSK Pakistan can create a Blue Ocean by venturing into
the following areas:

1) DIGITAL HEALTHCARE SOLUTIONS:

Create a telemedicine platform specifically for underserved and rural parts of Pakistan. This
would set GSK apart from rivals by providing services in addition to goods that increase
healthcare accessibility. Complete solutions for chronic illnesses and preventative care may be
offered through integration with GSK's current portfolio.

2) AFFORDABLE OTC PRODUCTS:

Introduce a fresh range of reasonably priced over-the-counter medical supplies made especially
for those with modest incomes. GSK can reach price-sensitive markets without sacrificing
quality by utilizing economies of scale.

3) HEALTH EDUCATION CAMPAIGNS:

GSK can fund health literacy initiatives that emphasize early diagnosis, hygiene, and preventive
care. By producing knowledgeable customers who have faith in the brand, this project would
increase goodwill and GSK's market share.

4) PERSONALIZED HEALTH CARE

Introduce individualized nutrition supplements and genetic testing kits, among other customized
healthcare goods and services. GSK would stand out in a very competitive industry thanks to
these advancements.

By focusing on these areas, GSK Pakistan can move away from intense competition in
traditional pharmaceutical segments and create new, uncontested markets. This approach aligns
with Blue Ocean Strategy principles by unlocking new demand and delivering exceptional value
to underserved customer segments.

2.4- COMPETITIVE ADVANTAGES OF GSK Pakistan:

GSK Pakistan Limited, being the largest producer of pharmaceutical products in Pakistan,
manage its resources and capabilities, while ensuring that it remains the market leader in
sustainable performance. Due to the Company’s various strategic decisions and initiatives,
following are some of the key resources and capabilities, which provide the Company a
sustainable competitive advantage:

GSK culture and thriving people at GSK, culture is something we all own. It’s powered by the
little things we do every day to help us get ahead of disease together. It drives delivery of our

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strategy and makes GSK a place where people can thrive - supporting each other to feel
included, to feel good and keep growing.

Extensive distribution network GSK works with numerous distributors who provide
goods/services that support us in delivering high-quality, safe products for our patients and
consumers. Our distributors help us reach the patients and remain competitive in the market.

Digital capabilities We believe in empowering sales professionals with personalized

communication with the HCPs by actively assessing the patients’ needs and investing in
emerging technologies.

Quality Management System (QMS) allows us to ensure high-quality of our products. It helps
achieve this by providing vigilance across the Organization to assure all of the activities
undertaken are fully compliant with internal GSK polices and those of our local Regulators and
helps us achieve an improvement in performance for the benefit of our business and
stakeholders.

Environmental sustainability to help get ahead of disease and deliver real human health
impact, we want to play our part in looking at the interconnections of climate, nature and health.
We continue to work hard to do more to protect the environment with the aim of a net zero
impact on climate and a net positive impact on nature by 2030 across our entire value chain –
from lab to patient. We’ve set clear and measurable targets to help achieve these goals.

Strategies to Safeguard and Sustain GSK Pakistan's Competitive advantages:

1. Identification: Obscuring Superior Performance:

GSK Pakistan can mask its market dominance and high performance to avoid attracting
excessive competition:
Limited Disclosure: Avoid revealing granular financial performance or market-specific success
in public disclosures. This helps obscure the extent of GSK's dominance, particularly in niche
markets like respiratory or vaccines.
Focus on Niches: Dominate niche therapeutic areas where GSK has a stronghold, such as
dermatology and anti-infectives, while maintaining a low profile in broader categories to reduce
competitive threats.

2- Incentives for Imitation: Deterrence and Preemption:

To discourage competitors from entering GSK’s key markets, the company can take the
following measures:
Market Occupation: Expand aggressively into current and potential niches to saturate the market,
leaving limited room for competitors.
Product Proliferation: Introduce a variety of products under different brand names to cover all
market segments, deterring rivals from identifying unoccupied spaces.
Capacity Expansion: Make large-scale investments in production facilities (e.g., Karachi plants)
ahead of market demand to preempt competitors and demonstrate GSK's capacity for leadership.

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Patent Proliferation: Secure extensive patent protections for GSK’s innovative products and
processes to maintain a technology-based advantage. This creates legal and financial barriers for
competitors attempting to replicate GSK’s success.

3- Diagnosing Competitive Advantage: Causal Ambiguity and Uncertain Imitability:

GSK can further safeguard its edge by capitalizing on the complexity of its organizational
capabilities and innovation processes:

Causal Ambiguity: The company’s competitive advantage should remain multifaceted, involving
a combination of high-quality R&D, strong branding, and an efficient supply chain. The
integration of these elements makes it difficult for competitors to identify and replicate the exact
sources of GSK’s success.
Uncertain Imitability: Invest in proprietary technologies, organizational culture, and bundled
capabilities that are not easily replicable even through reverse engineering or ghost shopping. For
instance, GSK’s strong brand equity and regulatory expertise contribute to this uncertainty.

4. Acquiring Resources and Capabilities:

Sustaining competitive advantage requires constant evolution of resources and capabilities:

Invest in Talent and Technology: GSK should recruit top-tier talent and continue leveraging its
global R&D infrastructure to maintain a steady pipeline of innovative products.

Build Local Capabilities: Strengthen local manufacturing and distribution networks to reduce
reliance on imports, cut costs, and increase adaptability to local market dynamics.

Collaborate Strategically: Partner with research institutions and government health programs to
enhance credibility, access, and impact in underserved areas.

By putting these tactics into practice, GSK Pakistan can keep its market-leading position over
time and shield its competitive advantage from copycats.

2.5 SWOT ANALYSIS:

Strengths:

Strong Brand Equity

Rationale: GSK's products, such as Panadol and Sensodyne, are household names in Pakistan,
trusted for their quality and effectiveness. This strong brand presence allows GSK to command a
premium price in an otherwise cost-sensitive market.
Assumption: The pharmaceutical and OTC sectors in Pakistan highly value established brands,
which influence purchase decisions.

Out of 20 top brands in Pakistan, 4 are GSK products

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Rationale: Having 4 out of the top 20 brands in Pakistan is a strength for GSK as it demonstrates
strong market dominance, high brand equity, and customer trust. This solidifies GSK’s position
as a key player in the pharmaceutical industry, driving consistent revenue and enhancing
competitive advantage.

Diverse Product Portfolio

Rationale: GSK Pakistan caters to multiple therapeutic areas such as anti-infectives,
dermatology, respiratory, urology, and vaccines. This diversification helps mitigate risks of over-
reliance on a single product line.

Access to Global R&D and Innovation

Rationale: As a subsidiary of GSK PLC, Pakistan benefits from cutting-edge research and a
steady pipeline of new therapies, keeping it ahead in a competitive market.

Regulatory Compliance and Quality Standards

Rationale: GSK Pakistan adheres to international manufacturing and quality standards, giving it
a competitive advantage over less-compliant local competitors.

Extensive Distribution Network

Rationale: GSK has a well-established supply chain that ensures its products are widely available
across urban and rural areas. This accessibility strengthens its market penetration.
Assumption: GSK’s distribution partners maintain efficiency and reliability across Pakistan.

Weaknesses:

Dependency on Imports for Raw Materials

Rationale: GSK relies on imported active pharmaceutical ingredients (APIs), which are
vulnerable to price volatility, currency devaluations and supply chain disruptions.
Assumption: Pakistan’s local production capacity for APIs will remain limited, maintaining
reliance on imports.

Mature portfolio major contributor to business

Rationale: It indicates limited growth potential. Products in a mature portfolio have likely
reached market saturation. Mature products are more exposed to:
Generic Competition: Patent expirations or the presence of generic alternatives erode market
share and reduce profitability.
Price Sensitivity: Mature products often face pricing pressures from regulators and competitors,
leading to margin reductions.

Limited Local R&D Facilities

Rationale: The absence of robust R&D infrastructure in Pakistan limits GSK's ability to develop
products tailored to the local market.
Assumption: Investment in local R&D may be deprioritized due to high costs and the focus on
global R&D hubs.

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Opportunities:

Expansion into Rural Markets

Rationale: Rural areas in Pakistan have unmet healthcare needs, presenting a significant growth
opportunity for affordable OTC products and vaccines.
Assumption: Rising rural incomes and government support for healthcare initiatives will
improve market viability in these areas.

Introduction of Digital Healthcare Solutions

Rationale: By integrating digital solutions like telemedicine and e-pharmacies, GSK can improve
its reach, particularly in remote areas. Telemedicine and digital platforms are gaining traction in
Pakistan, particularly in underserved regions. GSK can capitalize on this trend by integrating
these services with its product offerings.
Assumption: Internet penetration and smartphone usage will continue to rise in Pakistan,
enabling digital healthcare solutions.

Introduction of Innovative Therapies

Rationale: GSK’s global R&D can bring cutting-edge therapies for unmet needs, such as chronic
diseases (e.g., diabetes, hypertension) and emerging challenges like antibiotic resistance.

Securing CPI pricing increases

Rationale: It is an opportunity for GSK Pakistan as it helps offset inflation and currency
devaluation, ensuring the company maintains profitability despite rising costs of raw materials,
manufacturing, and logistics. This mechanism allows GSK to sustain operations without
compromising product quality while safeguarding against margin erosion in a volatile economic
environment.

Threats

Stringent Regulatory Changes

Rationale: Frequent regulatory changes, price controls, and delays in approvals can hinder
GSK’s ability to introduce new products or adjust pricing in response to market conditions.
Assumption: Regulatory uncertainty will persist, requiring agility in compliance strategies.

Economic Instability and inflation

Rationale: High inflation and economic challenges in Pakistan increase operational costs and
reduce consumer purchasing power, affecting demand for premium-priced medicines.
Assumption: The macroeconomic environment will remain volatile, necessitating careful
financial planning.

Counterfeit Products
Rationale: Counterfeit products pose a threat as they undermine GSK’s brand reputation,
compromise patient safety, and lead to revenue losses by diverting sales from legitimate
channels.

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Introduction of New Generics by Local Competitors
Rationale: New generics by local competitors threaten GSK by offering cost-effective
alternatives, eroding market share, and intensifying price competition, especially in price-
sensitive markets.

Supply Chain Disruptions

Rationale: Global supply chain issues, such as shipping delays or geopolitical tensions, could
disrupt the availability of critical raw materials and APIs.

Supporting Data and Logic for SWOT

Market Data: GSK Pakistan’s market share in OTC and vaccines supports its brand equity
strength. For example, Panadol is a leading OTC analgesic in the region.
Economic Trends: Reports indicate a growing middle class and increased healthcare expenditure
in Pakistan, creating opportunities despite economic challenges.
Technological Adoption: With smartphone penetration exceeding 50% in Pakistan, digital
healthcare initiatives are feasible and align with global health trends.

2.6 EFE, IFE, AND CPM MATRICES:

External Factor Evaluation (EFE) Matrix

External Weight Rating Weighted Explanation

Opportunities/Threats Score
Rising demand for 0.2 4 0.8 Increasing awareness for
vaccines preventive healthcare creates
market opportunities.
Growth in rural 0.15 3 0.45 Expansion into underserved
healthcare needs areas provides significant
growth potential.
Economic instability 0.2 2 0.4 Currency depreciation
impacts operational costs.
Stringent regulatory 0.2 2 0.4 Compliance with dynamic
changes regulations requires
resources and agility.
Competitive pressure 0.15 3 0.45 Generics offer cost-effective
from generics alternatives, especially in
low-income regions.
Increasing smartphone 0.1 4 0.4 Supports adoption of digital
penetration healthcare initiatives.
Total 1.0 2.9

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Internal Factor Evaluation (IFE) Matrix

Internal Weight Ratin Weighted Explanation

Strengths/Weaknesses g Score
Strong brand equity 0.25 4 1.0 Products like Panadol are
widely trusted by consumers.
Extensive distribution 0.2 4 0.8 Ensures availability across
network urban and rural regions.
Leadership in vaccine 0.2 3 0.6 Positions GSK as a trusted
production healthcare provider in
Pakistan.
Dependency on imported 0.2 2 0.4 Exposes the company to
raw materials currency fluctuations and
supply chain risks.
Limited local R&D 0.15 2 0.3 Limits innovation tailored to
facilities the Pakistani market.
Total 1.0 3.1

Competitive Profile Matrix (CPM)

Critical Success Weight GSK Abbott Sanofi Explanation

Factors Pakistan
Brand reputation 0.25 4 3 3 GSK’s trusted OTC brands
lead the market.
Product quality 0.2 4 3 4 GSK prioritizes safety and
efficacy in all its offerings.
Innovation and 0.2 3 3 3 GSK maintains global R&D
R&D leadership, though locally
underdeveloped.
Market presence 0.15 4 4 4 Strong market penetration in
urban and rural areas.
Price 0.1 3 4 3 Generic competitors often offer
competitiveness lower-cost alternatives.
Distribution 0.1 4 3 3 GSK’s supply chain is among
network the most reliable in the sector.
Total 1.0 3.65 3.25 3.4 GSK maintains a competitive
edge due to strong brand
presence and quality.

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2B STRATEGY SELECTION:

SWOT matrix:

Strengths (S):

1. Strong brand reputation with trusted products like Augmentin and Calpol.
2. Diverse product portfolio catering to multiple therapeutic areas.
3. Robust distribution network across Pakistan.
4. Access to global R&D and innovation pipelines from GSK PLC.

Weaknesses (W):

1. High dependency on imported raw materials, increasing costs due to currency fluctuation.
2. Limited penetration in rural and underserved markets.
3. Vulnerable to generic competition due to patent expirations.
4. High operating costs due to compliance with international standards.

Opportunities (O):

1. Growing healthcare awareness and demand for vaccines and chronic disease treatments.
2. Expansion into rural areas through digital health solutions and partnerships.
3. Collaboration opportunities with government programs like Sehat Sahulat.
4. Potential for local API production to reduce import dependency.

Threats (T):

1. Intense competition from local manufacturers offering low-cost generics.

2. Economic instability and inflation reducing purchasing power.
3. Regulatory challenges, including price caps and approvals.
4. Proliferation of counterfeit products affecting brand trust.

SO Strategies (Using Strengths to Leverage Opportunities):

1- Utilize GSK’s strong brand and global R&D to introduce innovative vaccines and chronic
disease therapies.
2- Expand distribution and marketing efforts in rural areas to capitalize on growing
healthcare demand.

WO Strategies (Overcoming Weaknesses by Leveraging Opportunities):

1- Reduce import dependency by investing in local API production facilities.
2- Improve market penetration through partnerships with government health programs and
digital health initiatives.

ST Strategies (Using Strengths to Mitigate Threats):

1- Leverage brand strength and product differentiation to counter generic competition and
counterfeit products.

18
 2- Use GSK’s robust distribution network to maintain market share in economically
challenging conditions.

WT Strategies (Minimizing Weaknesses and Avoiding Threats):

1. Develop cost-effective production techniques to reduce operating costs and compete with
local manufacturers.
2. Strengthen legal and supply chain measures to combat counterfeit products and maintain
brand integrity.

BCG Matrix:

1. Stars (High Market Share, High Market Growth)

Vaccines: GSK’s vaccine portfolio is in high demand due to increasing public awareness and
government immunization programs. Products like Boostrix and Synflorix fall into this category.
Respiratory Products (e.g., Ventolin): High market share in a growing segment due to the rise in
respiratory diseases like asthma.
Strategic Focus: Invest heavily to sustain growth and reinforce leadership in these areas.

2.Cash Cows (High Market Share, Low Market Growth)

Anti-infectives (e.g., Augmentin, Amoxil): These mature products dominate their segments but
are in markets with limited growth potential.
Analgesics (e.g., Calpol): Consistent demand but operates in a relatively saturated market.
Strategic Focus: Maximize cash flow by maintaining market dominance and optimizing costs.

3. Question Marks (Low Market Share, High Market Growth)

Dermatology Products (e.g., Dermovate, Betnovate): While the market for dermatology is
growing, competition from local brands limits GSK’s market share.
Urology Products: Emerging segment with growth potential but requires investment to capture
significant market share.
Strategic Focus: Analyze potential for growth and consider targeted investments or strategic
exits. Product development, market development

4. Dogs (Low Market Share, Low Market Growth)

Older Generic Medicines: Products with declining demand and stiff competition from low-cost
local generics.
Strategic Focus: Minimize investment in this category and consider phasing out unprofitable
products.

The BCG Matrix for GSK Pakistan highlights the strategic positioning of its product portfolio.
Stars, such as vaccines and respiratory products, enjoy high market share and growth, benefiting
from strong demand in emerging healthcare sectors. Cash Cows, like anti-infectives and
analgesics, dominate mature markets with steady revenue, but growth is limited, allowing GSK
to use the profits for reinvestment in other areas. Question Marks, including dermatology and
urology products, are in high-growth markets but have low market share, requiring targeted
investment to increase competitiveness. Lastly, Dogs, like older generics, have low market share

19
and growth, posing limited profitability and potentially needing to be phased out. This matrix
guides GSK in prioritizing investments and strategic focus.

RELATIVE MARKET SHARE

M
A STARS QUESTION MARK
R Vaccines Dermatology products
Respiratory products Urology products
K Invest in innovation and Evaluate potential; targeted
E manufacturing to maintain investments or strategic
T market leadership. exits.
G
R
O CASH COW DOGS
Older generic medicines
W OTC Products (e.g., Low-demand Therapeutic
T Panadol, Augmentin) Categories
H Use stable revenue to fund Minimize investment in this
R R&D and market expansion category
A initiatives.
T
E

SPACE MATRIX:

DIMENSIONS FACTOR SCORE

Financial Strength (FS) Revenue growth due to +6
healthcare demand
Strong market position in +5
vaccines
Controlled debt and cost +4
efficiency
Competitive Advantage Strong brand recognition -4
(CA)
Limited competition in key -5
categories
Dependence on regulatory -6
approvals
Environmental Stability Economic fluctuations -5
(ES)
Changing healthcare policies -6
Generic competition -4
Industry Strength (IS) Growing demand for vaccines +6

20
 and medicines
Increasing awareness of +5
healthcare
Expanding private healthcare +5
sector

1. INTERNAL FACTORS

FINANCIAL STRENGTH (FS):

Revenue growth: GSK Pakistan reported steady revenue growth due to its leading position in
essential medicines and vaccines. Assumed score: +6.
Profitability: Profit margins are moderate due to a mix of high-value patented drugs and low-
margin generics. Assumed score: +5.
Debt level: GSK Pakistan operates with manageable debt and strong cash flows. Assumed score:
+4.
Average FS = (6 + 5 + 4) / 3 = +5

COMPETITIVE POSITION (CP):

Market share: GSK holds a dominant share in key therapeutic areas like vaccines, and
respiratory. However, competition from local and international generic manufacturers reduces
differentiation. Assumed score: -4.
Brand equity: GSK's strong global reputation enhances trust among consumers and regulators.
Assumed score: -5.
R&D dependency: Reliance on global headquarters for research pipelines can slow local
innovation. Assumed score: -6.
Average CA = (-4 - 5 - 6) / 3 = -5

2. EXTERNAL FACTORS

ENVIRONMENTAL STABILITY (ES):

Regulatory environment: Complex drug pricing controls and approval processes in Pakistan limit
flexibility. Assumed score: -6.
Economic challenges: Currency depreciation and inflation increase costs. Assumed score: -5.
Competitor dynamics: Local manufacturers and generic competitors pose a growing threat.
Assumed score: -4.
Average ES = (-6 - 5 - 4) / 3 = -5

INDUSTRY STRENGTH (IS):

Market growth: Rising demand for healthcare services and preventive medicines in Pakistan.
Assumed score: +6.
Untapped potential: Urban and rural areas with unmet healthcare needs offer significant growth
opportunities. Assumed score: +5.
Technological advancements: The industry is shifting towards digitization and personalized
medicine, favoring strong players like GSK. Assumed score: +5.
Average IS = (6 + 5 + 5) / 3 = +5

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Refined SPACE Matrix Calculations
X-Axis (CP + IS):
X = -5 + 5 = 0
Y-Axis (FS + ES):
Y = +5 - 5 = 0

Updated Strategic Quadrant and Recommendations

The refined SPACE Matrix still places GSK Pakistan near the origin, suggesting a Balanced
Zone with opportunities for growth through an Aggressive Strategy.

Detailed Strategic Recommendations

Short-Term Strategies:
Market Penetration:
Increase focus on promoting high-demand vaccines (e.g., pediatric and influenza vaccines) in
urban markets.
Strengthen sales teams and marketing campaigns to expand reach within existing market
segments.
Cost Optimization:
Leverage economies of scale in production to offset rising costs due to inflation and currency
depreciation.

Long-Term Strategies:
Market Development:
Expand into rural and underserved areas by improving distribution networks.
Partner with government and NGOs to deliver affordable healthcare solutions.
Product Development:
Focus on introducing innovative, high-margin products in emerging therapeutic areas like
oncology. Collaborate with local R&D partners to reduce dependency on global pipelines.
Digital Transformation:
Implement digital health solutions for patient monitoring and telemedicine, capitalizing on
technological shifts in the healthcare sector.

IE MATRIX:

Plotting the Scores:

 X-Axis (IFE): 3.10 (Strong) indicating a strong internal position based on its capabilities
like brand strength, market share, and robust product portfolio.
 Y-Axis (EFE): 3.15 (High) indicating a moderate external position due to growth
opportunities like expanding healthcare demand and challenges like currency devaluation
and local competition.

22
 IFE(INTERNAL POSITION)
EFE (External Position) Weak(1.0-2.0)
Low (1.0–2.0) Harvest/divest
Medium (2.1–3.0) Harvest
High (3.1–4.0) Hold/maintain

GSK Pakistan's Position:

IFE = 3.10 (Strong), EFE = 3.15 (High).
Position: Grow and Build (Top-Right Corner).

STRATEGIC IMPLICATIONS:
The Grow and Build quadrant indicate that GSK Pakistan should adopt aggressive strategies to
capitalize on its internal strengths and external opportunities. Recommended strategies include:
Market Penetration: Increase market share for existing products through marketing and
distribution.
Product Development: Focus on R&D to launch innovative products, especially in growing areas
like vaccines and dermatology.
Market Development: Expand into untapped regions or demographics within Pakistan.
Strategic Alliances: Collaborate with healthcare providers and government programs to
strengthen its competitive position.

GRAND STRATEGY MATRIX:

Quadrant I (Strong CP, High Quadrant II (Weak CP, High

MG) MG)
Market penetration Market development
Product development Horizontal/vertical integration
Diversification Divestiture
Quadrant III (Weak CP, Low Quadrant IV (Strong CP, Low
MG) MG)
Retrenchment Diversification
Divestiture Joint ventures
CP= COMPETITIVE POSITION
MG= MARKET GROWTH

Gsk Pakistan's Position:

Quadrant I (Strong CP, High MG).
Interpretation:
As a Quadrant I company, GSK Pakistan should:
 Focus on market penetration to increase sales in existing markets.

23
  Pursue product development by introducing new vaccines and
pharmaceuticals.
 Consider diversification into related healthcare areas such as over-the-
counter (OTC) medicines.

QSPM MATRIX:

Key Factors Weight Strategy A AS Strategy B AS

(Market (A) (Product (B)
Penetration) Development)
Opportunities
Growing 0.15 4 0.60 3 0.45
demand for
healthcare
Expansion in 0.10 3 0.30 4 0.40
rural areas
Threats
Regulatory 0.20 3 0.60 4 0.80
challenges
Generic 0.15 2 0.30 3 0.45
competition
Strengths
Strong market 0.25 4 1.00 3 0.75
presence
Financial 0.15 4 0.60 3 0.45
strength
Weaknesses
Dependency on 0.10 3 0.30 4 0.40
HQ for R&D
Total 1.00 3.40 3.70
Attractiveness
Score

Interpretation:
Strategy B (Product Development) has a higher Total Attractiveness Score (TAS = 3.70),
indicating it is the better option for GSK Pakistan. It prioritizes developing innovative products
to maintain its competitive edge while also pursuing market penetration as a secondary strategy.

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 3. STRATEGY IMPLEMENTATION:

“Some Management Issues Central to Strategy Implementation”

1. Establishing annual objectives:

Enhance Operational Efficiency and Cost Optimization GSK Pakistan aims to streamline
operations, reduce costs, and improve resource utilization to enhance overall efficiency. This
involves implementing reengineering initiatives in manufacturing and distribution processes,
optimizing the supply chain, and increasing local API production to reduce reliance on imports.
These efforts will ensure cost savings and improve operational effectiveness, monitored through
regular cost audits and efficiency metrics.

Demonstrate Sustainable Social, Environmental, and Corporate Governance Commitment

GSK Pakistan is committed to embedding sustainability into its operations by addressing social,
environmental, and governance priorities. Initiatives include reducing carbon emissions in
manufacturing, improving healthcare access in underserved areas, and adhering to global
governance standards. Progress will be evaluated through annual sustainability reports and
alignment with international benchmarks, reflecting GSK’s dedication to ethical and responsible
business practices.

Accelerate Performance through “Growth Engines” and “Profitable Growth” Portfolios

To drive revenue and market leadership, GSK Pakistan focuses on expanding high-potential
product segments like vaccines and respiratory therapies under its “Growth Engines” while
optimizing dermatology and anti-infective products in its “Profitable Growth” portfolio. By
investing in R&D, marketing, and distribution, GSK aims to strengthen its market position, with
success tracked through market share, revenue growth, and profitability metrics.

Develop a high performing team by embedding strong cultural pillars. Driving wider teams to
embed new GSK cultural pillars while instilling ownership and accountability.

Develop and retain employees and promote diversity & inclusion across the Organization.
Cultivating a conducive work environment focusing on Diversity & Inclusion. Providing equal
opportunities in unconventional roles to attract talent from diverse cultural backgrounds. Driving
the Women Leadership Initiative (WLI) and encouraging allies to support it.

2. Devise policies:
Compliance and Regulatory Policy:

 Ensure adherence to local and international pharmaceutical regulations.

 Establish a compliance team to monitor regulatory updates and align operations
accordingly.
 Conduct regular audits to maintain high-quality standards.

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Organizational Structure Policy:

 Define clear roles and responsibilities for all employees to avoid overlap and confusion.
 Foster cross-functional collaboration for efficiency in achieving strategic goals.
 Restructure departments as necessary to align with new strategies.

Human Resource Development Policy:

 Invest in employee training and leadership development programs.

 Introduce performance management systems aligned with strategic objectives.
 Encourage innovation and collaboration by fostering an inclusive workplace culture.

Sustainability Policy:

 Incorporate environmental considerations into production processes.

 Optimize resource usage to minimize waste and carbon footprint.
 Collaborate with suppliers to ensure sustainable sourcing practices.

Technology and Innovation Policy:

 Invest in digital transformation to streamline operations and enhance efficiency.

 Support R&D initiatives that align with GSK Pakistan’s strategic objectives.
 Encourage the adoption of advanced technologies in production and distribution.

3- Resource allocation:

Financial resources should focus on R&D to develop innovative pharmaceutical products,

marketing to enhance brand visibility, and regulatory compliance to meet local and international
standards.

Human resources must be allocated toward training programs to upskill employees, recruiting
specialists for critical areas like R&D and quality assurance, and implementing employee
engagement initiatives, such as performance-based incentives and team-building activities.

Technological resources should be directed toward digital transformation, including advanced

data analytics tools, CRM systems, and automated production technologies.

Operational resources need to upgrade manufacture facilities, strengthen the distribution

network, and establish strategic partnerships with healthcare institutions and research
organizations.

For natural resources, efforts should prioritize sustainable sourcing practices, energy efficiency
improvements, and eco-friendly production processes.

4- Alter an existing organizational structure:

26
Assess Current Structure: Evaluate the existing hierarchy and departmental roles to identify
gaps, redundancies, or inefficiencies that may hinder the execution of strategic goals.

Align Structure with Strategy: Adapt the organizational design to support strategic priorities such
as innovation, market expansion, and regulatory compliance. For instance, create cross-
functional teams to foster collaboration between R&D, marketing, and compliance units.

Strengthen Leadership Roles: Introduce or redefine leadership roles to ensure clear

accountability. Establish specialized positions such as a Chief Digital Officer to drive digital
transformation or a Compliance Lead to focus on regulatory adherence.

Create Strategic Units: Establish dedicated teams or units for high-priority areas like
sustainability, digital transformation, or customer engagement. These units should be agile, goal-
oriented, and well-integrated with other departments.

Decentralize Decision-Making: Empower middle and lower management by decentralizing

decision-making, especially in operational areas like production, distribution, and customer
service. This enables faster responses to market changes.

5- Restructure and reengineer

Streamline Operations: Reengineer processes to eliminate inefficiencies and reduce costs. For
instance, adopt lean manufacturing techniques to optimize production and minimize waste, and
streamline supply chain operations to improve delivery timelines.

Focus on Customer-Centricity: Reengineer processes to prioritize customer needs, such as faster

response times, better product availability, and improved customer support. This includes
optimizing CRM systems and tailoring products to market demands.

6- Revise reward and incentive plans

The company should align rewards with strategic goals by introducing performance-based
incentives tied to key performance indicators (KPIs). These could include bonuses for achieving
sales targets, completing innovative projects, or meeting regulatory compliance benchmarks.
Long-term incentives, such as stock options or career growth opportunities, can motivate
sustained contributions.
Additionally, non-monetary rewards, such as recognition programs, training opportunities, and
flexible work options, can enhance employee engagement and support a culture aligned with
strategic priorities. Regularly reviewing and updating these plans ensures they remain effective
and relevant.

7- Minimize resistance to change

To minimize resistance to change at GSK Pakistan, clear communication is essential to explain
the purpose, benefits, and impact of changes to all employees. Engaging employees early in the
process through feedback and participation fosters ownership and reduces uncertainty. Providing
training and resources helps employees adapt to new roles or systems.

27
Leadership should act as role models, demonstrating commitment to the change. Recognizing
and addressing concerns openly builds trust, while offering incentives or support during the
transition period helps ease the process and ensures smoother implementation of strategic
initiatives.

8- Matching Structure with Strategy

To match the structure with strategy for GSK Pakistan, the organizational design should align
with strategic goals such as innovation, market expansion, and regulatory compliance. This
involves creating specialized units for R&D, compliance, and digital transformation, while
fostering cross-functional collaboration to improve efficiency. Leadership roles should be clearly
defined to ensure accountability and focus on strategic priorities. Decentralized decision-making
can empower teams to respond quickly to changes, and the hierarchy should remain flexible to
adapt to evolving strategies. Regular reviews of the structure ensure it continues to support the
company’s objectives effectively.

9- Develop a strategy-supportive culture

To develop a strategy-supportive culture at GSK Pakistan, foster values such as innovation,
collaboration, and accountability that align with the company’s strategic objectives. Encourage
open communication to ensure employees understand and commit to the strategy. Recognize and
reward behaviors that drive strategic goals, such as teamwork or creative problem-solving.
Provide continuous learning opportunities to equip employees for future challenges and promote
leadership that exemplifies the desired culture. Regularly reinforce the importance of aligning
daily activities with strategic priorities to embed these values across the organization.

10. Adapt Production/Operations Processes:

To adapt production and operations processes for GSK Pakistan's strategy implementation,
invest in advanced technologies to optimize manufacturing, improve efficiency, and reduce
costs. Streamline supply chain management to ensure timely delivery of products and ensure
flexibility in production to respond to market changes or regulatory demands. Sustainability
initiatives should be integrated into the production process to align with global environmental
standards.

Develop an Effective Human Resources Function:

To support strategy execution, GSK Pakistan should strengthen its HR function by aligning
recruitment, training, and development with strategic goals. This includes identifying and
nurturing talent that supports innovation, compliance, and operational excellence. Implement
performance management systems that track progress against strategic objectives and offer
incentives for employees who contribute to these goals.

Downsize and Furlough as Needed:

If required, GSK Pakistan should implement downsizing or furloughs in a manner that is
strategic and fair. This could involve assessing which roles are critical to achieving the
company’s strategic objectives and making difficult decisions in non-essential areas. Transparent
communication and offering support services like severance packages or reemployment
assistance can help manage the process while minimizing morale issues.

28
Link Performance and Pay to Strategies:
GSK Pakistan should ensure that its performance management and compensation systems are
tightly linked to the company’s strategic goals. This means setting clear KPIs and objectives for
each role and tying bonuses, raises, and promotions to performance outcomes that align with the
overall strategy. By doing so, employees are incentivized to focus on areas that drive the
company’s success.

STRATEGY IMPLEMENTATION PLAN:

1. OBJECTIVE SETTING AND ALIGNMENT:

Goal:
 Increase market share and create cutting-edge medical products that are suited to regional
demands.
Key Objectives:
 Expand market share in underserved and rural areas.
 Over the course of the following 12 months, introduce at least two new medical products.
 Make products more accessible and affordable without sacrificing quality.

2. ORGANIZATIONAL PREPRATION:
Build cross-functional teams:
 Teams in supply chain, marketing, sales, regulatory affairs, and R&D should be given
tasks.
 A Strategy Implementation Office (SIO) should be established in order to monitor and
coordinate activities.
Employee Training:
 Educate marketing and sales teams on how to properly advertise new goods.
 Send updates on compliance requirements to regulatory teams.
 Provide resources to R&D personnel so they can concentrate on creative solutions.

3. MARKET PENETRATION STRATEGY EXECUTION

A. Expanding Rural Market Reach:
 To guarantee broad product availability, fortify alliances with regional distributors. In
low-income areas, create a tiered pricing structure to make products affordable.
 Community Involvement:
 Run health education programs in rural areas emphasizing the advantages of vaccinations
and preventative care.
 Increase healthcare access and awareness by working with governmental initiatives and
non-governmental organizations.
 Infrastructure Support:
 To reach populations that are located far away, implement telemedicine services or
mobile health units. Assist rural pharmacies in carrying GSK products consistently.
B. Strengthen Urban Market Share:
 Enhance advertising campaigns for well-known over-the-counter medications like
Sensodyne and Panadol using digital, radio, and television channels to increase urban
market share.

29
  Provide special discounts for large purchasers, including pharmacies, medical facilities,
and hospitals.
 Strengthen product advocacy by holding "Product Information Sessions" for physicians
and pharmacists in urban areas.

4. PRODUCT DEVELOPMENT STRATEGY EXECUTION:

A. Launching New Products:
 R&D Investment:
 Give top priority to creating reasonably priced over-the-counter products that address
common health concerns in Pakistan, like cold and digestive health.
 Integrate GSK's pharmaceutical experience with digital healthcare tools, such as
smartphone apps, for managing chronic illnesses.
 Local Manufacturing:
 To cut expenses and lessen reliance on imported raw materials, establish local
manufacturing alliances.
 To uphold GSK's stellar reputation, concentrate on quality control.
 Pilot Testing:
 To determine whether a new product is viable, launch it on a small scale in strategic
markets.
 Prior to a full-scale launch, gather consumer input and make necessary product
improvements.
B. Innovation in Personalized Healthcare:
 Create genetic testing kits or customized supplements that follow current medical trends.
 To better understand consumer preferences and customize product offerings, use data
analytics.

5. FINANCIAL RESOURCE ALLOCATION:

 Financial:
Set aside money for marketing, R&D, and rural development projects. Create emergency funds
to handle unforeseen changes in the economy or regulations.
 Technological:
Make investments in online resources for health monitoring and telemedicine. Increase supply
chain efficiency by utilizing block chain and AI.
 Human Resources:
Hire specialists in rural development and digital healthcare. Employees should be skilled to
handle new product offerings.

6. REGULATORY COMPLIANCE:
 Keep a strong compliance staff to handle government policies and DRAP regulations.
 To guarantee seamless product registration and pricing approvals, interact with
legislators.
 Keep a close eye on regulatory changes to prevent delays.

7. MARKETING AND AWARENESS HEALTH EDUCATION CAMPAIGNS:

 Health Education Campaigns:

30
  Collaborate with community centers and schools to inform the public about
immunizations, hygiene, and preventive care.
 Targeted Advertising:
 To engage a variety of audiences, use messaging that is culturally appropriate.
 In rural campaigns, emphasize quality and affordability while concentrating on
innovation for urban consumers.
 Digital Outreach:
 Increase GSK Pakistan's visibility on social media.
 Introduce easy-to-use applications that offer options for consultation and product details.

8. MONITORING AND ASSESSMENT:

 Set up KPIs to monitor:
 Urban and rural sales growth. Rates of consumer acceptance of new products.
 Efficiency in operations and adherence to regulations.
 Dashboards can be used to track progress in real time. To make strategy adjustments,
conduct reviews every three months.

9. PILOT TESTING AND SCALING:

 Pilot Execution:
 Test the market penetration and product development strategies in one urban and one
rural region.
 Use feedback to address logistical or product-related challenges.
 Nationwide Rollout:
 After successful pilot testing, scale the implementation across Pakistan with regional
customizations.

10. EMPLOYEE AND STAKEHOLDER ENGAGEMENT

 Incentives:
 Offer performance-based incentives to motivate teams.
 Stakeholder Communication:
 Regularly update stakeholders on progress through reports and meetings.
 Gather input from healthcare professionals, government agencies, and distributors to
refine strategies.

3. STRATEGY EVALUATION GUIDELINES

31
 To evaluate the strategies selected and implemented for GSK Pakistan, the following steps
are outlined:

1. Examine the Underlying Bases of Strategy

 Action: Regularly review the assumptions and factors that formed the basis of GSK’s
chosen strategies, such as market demand, competitive position, and internal capabilities.
 Steps:
1. Prepare revised Internal Factor Evaluation (IFE) and External Factor Evaluation
(EFE) matrices.
2. Compare these updated matrices to the original ones to identify any significant
changes in internal strengths/weaknesses or external opportunities/threats.
3. Evaluate whether the changes justify any adjustments to the current strategy.

2. Measure Organizational Performance

 Action: Compare planned objectives with actual outcomes to assess the effectiveness of
the implemented strategies.
 Steps:
1. Track metrics like market share, revenue growth, and cost savings from
operational efficiencies.
2. Benchmark performance against industry averages and competitors to identify
gaps or achievements.
3. Use tools such as the Balanced Scorecard to assess key performance indicators
(KPIs) across financial, customer, operational, and innovation metrics.

3. Take Corrective Actions

 Action: Identify areas where performance deviates significantly from expectations and
implement corrective measures to align results with strategic goals.
 Steps:
1. If KPIs indicate underperformance (e.g., lower-than-expected rural market
growth), reallocate resources or refine marketing efforts.
2. Develop contingency plans to address unforeseen obstacles, such as regulatory
delays or supply chain disruptions.
3. Continuously improve processes to sustain competitive advantages and respond to
market dynamics.

4. Apply Rumelt’s Criteria for Strategy Evaluation

 Consonance: Ensure strategies align with market trends and external forces, such as
rising healthcare demand or government healthcare programs.
 Consistency: Verify that strategies are coherent with GSK’s objectives and do not create
internal conflicts.
 Feasibility: Confirm that resources, capabilities, and processes can support the strategy
without overextension.

32
  Advantage: Assess whether the strategy provides a sustainable competitive edge through
resources, skills, or market positioning.

5. Address Key Questions to Enhance Evaluation

 Are the internal strengths and weaknesses still relevant?

 Have new external opportunities or threats emerged?
 How have competitors reacted to GSK’s strategies, and what adjustments are needed to
stay ahead?
 Are customers satisfied with the outcomes of the implemented strategies?

6. Characteristics of Effective Evaluation

 Ensure the evaluation process is economical, avoiding unnecessary complexity.

 Maintain relevance by tying evaluation activities to specific objectives.
 Use timely and accurate information to reflect the real impact of strategies.
 Foster a culture of trust and collaboration during the evaluation process to encourage
honest assessments and feedback.

7. Develop Contingency Plans

 Action: Identify potential events that could derail the strategy, such as economic
instability or unexpected competition.
 Steps:
1. Specify trigger points (e.g., sales dropping below 10% of the target).
2. Assess the impact of these events and prepare alternative action plans to minimize
disruption.

8. Incorporate Continuous Improvement

 Action: Embed a feedback loop to incorporate lessons learned into ongoing strategy
refinement.
 Steps:
1. Hold regular review meetings to discuss progress and challenges.
2. Update strategies based on evaluation findings to ensure they remain relevant and
effective.

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34