March 16, 2024

AstraZeneca: PESTEL Analysis of Astrazeneca Company

pestel analysis of astrazeneca company

AstraZeneca, a global giant of the pharmaceutical industry, has been revolutionizing the lives of several patients and society as a whole. Their implementation of innovation science has led to the production of life-changing drugs. AstraZeneca operates using Innovation science mainly in three areas: Cardiovascular and metabolic, oncology, and respiratory disorders  (Schwartzman, 1978). Their growth is marked by innovation. As they progress, their business model incorporates technological advancements to make the process more patient-centric  (Snell & Yemen, 2017). Furthermore, their three major strategies include: 

  1. More efficient use of innovation science to improve the patient experience.
  2. To deliver growth and results in terms of efficient disease prevention, diagnosis, and treatment. 
  3. Streamlining the process along with the funders of healthcare to encourage value-based pricing systems
  4. Creating an empowering work environment, acknowledging the efforts of their workers 

Also Read SWOT Analysis of Astrazeneca Company

AstraZeneca’s strategic priorities include-
  1. Maintaining a continuous drop of specialty care products to ensure a balance in their existing strength in primary care. 
  2. Ensuring that the teams are globally located to better assess the differences required in the operations.
  3. Timely upgradation of Research and Development methods to ensure that the process is not obsolete. 


Additionally, it has adopted an Emerging Markets Strategy, based on the ideas of Expansion, Innovation, and Partnership. Market access, client base, portfolio selling, and retail can all be used to expand. Medicine development and launch acceleration, patient-centric, fully integrated ecosystems, and new-medicine localization are all examples of ways to innovate. Local capital markets, central and local government, local healthcare providers, and business growth can all form partnerships.

Furthermore, the expansion strategies followed by AstraZeneca are legitimate. For example- talking about AstraZeneca’s market in India has captured a huge market share owing to its therapeutic solutions  (Chaudhuri, 2015). As per records, India, unfortunately, records the highest rate of diabetes patients, along with other cardiovascular and metabolic diseases.



PESTEL Analysis of AstraZeneca:


PESTEL Analysis is a method for studying the macro-environment of a corporation. It investigates the elements that influence it from the outside. The abbreviation PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) stands for Political, Economic, Social, Technological, Environmental, and Legal  (Issa & Issa, 2014). The most serious concern that AstraZeneca confronts is the prospect of revenue loss due to generic drug popularity. Its chances and strengths, on the other hand, include a first-place ranking in the innovation index and solid financial performance.


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AstraZeneca is affected by the following political factors:

  • Political stability: Political instability hurts the company.
  • Corruption level: Working in countries with high levels of corruption and bureaucracy, as well as inadequate law enforcement, should be avoided at all costs.
  • Legal framework and taxation: AstraZeneca’s profitability will be harmed if taxes are raised too high. It should also research intellectual property rights and develop commercial plans based on them.



AstraZeneca is affected by the following economic factors:

  • In the economy, labor costs, and productivity: AstraZeneca PLC can ensure higher labor productivity in the event of flexible labor markets. Operating in a restrictive labor market, on the other hand, may result in labor pay wars, brought up by labor unions.
  • GDP growth rate: An organization’s ability to pursue a long-term business growth strategy is determined by its GDP growth rate. A high GDP also suggests that consumers have the financial means to spend.
  • Unemployment rate: A high unemployment rate indicates that there is a surplus of labor available at lower wages. AstraZeneca’s production costs could be reduced by operating in such a market.



AstraZeneca is affected by the following social factors:

  • Demographics and population skill levels. Demographic characteristics can aid AstraZeneca in selecting the right market segment with high growth potential.
  • Class, hierarchy, and power structures in society: AstraZeneca should create local teams to understand societal attitudes to customize marketing strategies across cultures.
  • Purchasing habits: Purchasing power affects consumer spending patterns. It’s essential to analyze customers’ spending patterns by studying their purchasing power parity based on given data.



AstraZeneca is affected by the following technological factors:

  • Technology’s impact on product offering: Research and development efforts are critical. AstraZeneca must analyze rival investments on a macro scale, to understand the rival’s product offering, in terms of technology incorporation.
  • Rate of technology diffusion: To have a competitive advantage, AstraZeneca should analyze current technological advancements and incorporate them in its operations to generate beneficial business outcomes through enhanced user experience and extended access.



AstraZeneca is affected by the following environmental factors:

  • Weather and Climate Change: Weather and climate change impact the company’s efficiency and its overall image since consumers are becoming more aware of the issue. Extreme conditions raise operating costs.
  • Recycling is increasingly becoming a corporate standard in various countries. Furthermore, adopting efficient waste management methods is critical.
  • Attitudes about renewable energy and support for it: Financial incentives to encourage usage of renewable energy technology. AstraZeneca should capitalize on it and invest in renewable technologies to secure long-term viability.



AstraZeneca is affected by the following legal factors:

  • Copyright, patents, and intellectual property law: AstraZeneca should focus on intellectual property laws, failing which it may lose the competitive advantage to its competitors. 
  • Employee health and safety regulations: Business organizations must stick to labor health and safety regulations, as some nations keep stringent checks on them. It should provide a safe and inclusive working environment for its employees.
  • Data Protection: In this world, data protection has become a major problem since cybercrime is on the rise. Thus, to protect consumer data, AstraZeneca must be well-equipped with data protection rules.

astrazeneca pest analysis


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