AstraZeneca is the second biggest organization in the United Kingdom and was formed to research and create medications expected to provide medical (Arnold, 2003). In the pharmaceutical Industry, AstraZeneca has done exceptionally well and figured out how to exceed the competition and stay profitable throughout the years. The business is lucrative to the point that made the American pharmaceutical goliath, Pfizer, to consider purchasing it. AstraZeneca works in an industry with the most noteworthy rate of patent dangers with low minimal item returns. In this way, such organizations must endeavor hard to decrease auxiliary inefficiencies and cut on their operational expense with a specific end goal to make benefits. The achievement of Astra Zeneca is as a consequence of the great environment in its site and a noteworthy history of good execution throughout the years (Arnold, 2003).
AstraZeneca is focused on becoming the scientific leadership in the pharmaceutical industry through their innovative products. The company wants to return to growth and to realize more profits from their sales. Since the company respects human resources, AstraZeneca is determined to be a great place for everyone to work by creating a conducive working environment.
The objective of the company is to work closely with the patients and the healthcare providers to gain insight that would benefit the two groups of persons. The company is also determined to come up with innovative practices that promote quality service delivery in the health sector.
AstraZeneca serves an international market with various drugs that cure several diseases (AstraZeneca, 2015). Most of the sales come from cardiovascular and metabolic disease followed by drugs that cure infectious diseases. Most of the drugs are used in Europe, while others are also sold in the United States, Asia, and Africa.
AstraZeneca is resolved to upgrade development past their authoritative limits with the point of enhancing development in their associations. The company is also planning methods for conveying unmistakable game changer and lead from the front with responsibility and an awareness of other’s expectations (Plumridge, 2014). Moreover, the company is additionally determined to rearrange their procedure and working models to elevate proficiency and to improve the general efficiency.
How Astra Zeneca Handled the Euro Crisis
Blue Print Strategy
By employing the blueprint strategy AstraZeneca PLC has focused their skills and resources on major key areas, so as to establish some marketplaces that are free from competitors (Bowman & Graves, 2005). They have focused on some of the world’s most serious illnesses that give less attention by other organizations offering medication and health services, with an aim of competing against no one. They have further conducted research and a lot of scientific innovation, which has made them, to come up with new treatment methods and medical services that their competitors don’t have in place. In this case, they have differentiated their pharmaceutical and medicinal products from those of the other Medicare organizations, creating new demands for their medical services. Some of those areas where they have come up with new products include cardiovascular and metabolic, neuroscience, gastrointestinal, oncology, infection and respiratory services to their services that have been given less consideration by their competitors. Due to this they have done away with competition and their different medical fields of operations.
Porter Generic Analysis
By employing porter generic analysis, AstraZeneca PLC has reduced the cost of their medical services with an aim of luring customers. They have realized an increase in the number of clients to their organization, accompanied by an increase in the marginal revenue and profit as well, and enabling them to increase their savings (Hodgson, 2012). The organization has further passed part of this savings to their clients by reducing prices of the healthcare and Medicare services, thereby attracting more clients due to the affordable rates. AstraZeneca PLC further offered discounts on the cost, patients incur during the various treatments including both inpatient and outpatient services.
Porter Five Forces
The strategy of Astra Zeneca can also be explained in terms of Porter Five Forces that analyses its external business environment. Astra Zeneca operates in pharmaceutical company with high barriers to entry due to high costs of R&D. This is because a company that is willing to explore the pharmaceutical business finds it hard to carry out enough research and development that is required for them to venture into the business (Gautam and Ron, 2001). The right research in the industry takes a long time of analysis and this becomes a challenge that many companies are not in a position to cope with. However, their failure to venture into the business leads to less competitors of Astra Zeneca whereby, lack of many competitors leads to high returns on investment to the company.
According to Michael and Susannah (2003) suppliers of Astra Zeneca are faced with a bad relationship with the company, which need to be improved to better the transactions that are carried out between them and the company. Astra Zeneca is well known to have leverage over its buyers despite the competition that they face form the United Kingdom leading pharmaceutical company having decreased its leverage power. However, Astra Zeneca is competent in having high power when it comes to the individual hospitals and pharmacies, which are newly formed and emerging at a high rate (Byrne, 2011). The national health systems are the largest Astra Zeneca’s clients whom they attend to accordingly.
Medicine produced at Astra Zeneca is comprised of treatments such as the acupuncture and the homeopathy based on personal experience of major expertise in the medical world. Claims prove that the alternative medicine is comprised of non-scientific validations and mostly comprised of what experts have researched on their own (Hayward, 2006). Astra Zeneca pharmaceutical they are very strict in that they use what has scientifically been proven and researched through the many clinical trials that are carried out in the company.
According to Hayward, (2006) there is a lot of competitive rivalry that is currently taking place at Astra Zeneca and this comes from other companies like the Amgen pharmaceutical company, Genentech Company, Novartis Company, GlaxoSmithKline pharmaceutical Company all based in the United Kingdom. This was the main reason as to why Astra Zeneca decided to implement the blue ocean strategy as it would help in the competition reduction and diversifying many factors, which are of high benefit to the company. Astra Zeneca was established early compared to many of its competitors a factor that has seen it sails through the medicine world. This is because, it has power over its customers and in case of new entrants in the industry it is safe as they will take a long period of time before matching them.