Application of Business Level Strategy by Glaxosmithkline in Responding to Competition in Kenya

Abstract

The objective of this study was to determine the responses by GlaxoSmithKline to competition on the basis of its business level strategy by assessing the response in Kenya. The study adopted a case study method focusing on managers in various business units involved in the development and implementation of GlaxoSmithKline's business level strategy in the face of competition. An interview guide was used to collect data from the sample. GlaxoSmithKline's' application of business level strategy was to remain competitive and meet customers’ needs to enable people do more feel better and live longer. The researcher established that: the main forces in the external environment of GSK were legal and socio-cultural factors. The main source of competition was the violation of intellectual property with the major competitive response being advertising while expansion into regional markets was cited as being a major growth strategy employed by GSK. Legal challenges were cited as the major challenges faced in the implementation of the business level externally while the lack of adequate resources was mentioned as the main internal challenge. The change management issue that stood out during the implementation of the business level strategy was the fear of losing positions. The main response in managing change was training of employees to enable them effectively implement the business level strategy. Organizational structure handicaps were smoothened out through consultations as a way of aligning the organizational structure to the business level strategy.