Essays on Glaxo Smith Kline Strategies Case Study

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The paper "Glaxo Smith Kline Strategies " is a perfect example of a business case study. A business-level strategy integrates and coordinates organizational actions and commitments towards competitive advantage. Managers use this strategy to support the corporate strategy and compete in a specific business area. The key success factors for a business-level strategy are to understand the customers’ wants and to achieve competitive advantage (Bamford & West 2010). It is important that managers are aware of the customers and their needs when formulating a business-level strategy for their brand (Berthon, Holbrook & Hulbert 2003).

They also need to know the niche customer groups and distinctive competencies that separate their products and services from competitors. This awareness determines the choice of business-level strategy: cost-leadership strategy, differentiation, focused differentiation and focused cost leadership. Glaxo Smith Kline (GSK) adopted a differentiation strategy to set the Ribena brand apart from the offerings of competitors. Ribena gained popularity over the years owing to its vitamin C content. This differentiated the brand from other beverages produced by competitors. However, a chemistry test by two New Zealand students found that Ribena ready to drink (RTD) had less vitamin C content than had been advertised.

The company failed to respond to the student’ s inquiries and was subsequently fined $NZ 227,500 for incorrect labeling and misleading advertisements (Jaques 2008, p. 394). GSK was humiliated when the incident spread to the rest of the world and had to make an apology through advertisements in New Zealand and Australia. 2.0 Coherent Actions that GSK May Have taken to avoid the Legal and Reputational Risks GSK should have taken the following actions to avoid reputational and legal consequences arising from the case: recognized the problem, apply a strategic response to complaints, correct the product mistake and apologize where necessary.

Firstly, GSK should have recognized the problem in time.

References

Bamford, C & West, G 2010, Strategic management: value creation, sustaínability, and performance, Cengage Learning, Stamford, CT.

Berthon, P, Holbrook, M, & Hulbert, J 2003, ‘Understanding and managing the brand space’, MIT Sloan Management Review, viewed 8 April 2014, http://sloanreview.mit.edu/article/understanding-and-managing-the-brand-space/

Funk, T 2012, Advanced social media marketing: how to lead, launch, and manage a successful social media program, Apress, New York.

Gensler, S, Volckner, F, Liu-Thompkins, Y & Wiertz, C 2013, ‘Managing brands in the social media environment’, Journal of Interactive Marketing, vol.27, pp.242-256.

Grundy, M & Moxon, R 2013, ‘The effectiveness of airline crisis management on brand protection: A case study of British Airways’, Journal of Air Transport Management, vol. 28, pp.55-61.

Jaques, T 2008, ‘When an icon stumbles: The Ribena issue mismanaged’, Corporate Communications: An International Journal, vol.13, no.4, pp. 394-406.

Funk, T 2012, Advanced social media marketing: how to lead, launch, and manage a successful social media program, Apress, New York.

Johar, G, Birk, M & Einwiller, S 2010, ‘How to save your brand in the face of crisis’, MIT Sloan Management Review, viewed 8 April 2014 http://sloanreview.mit.edu/article/how-to-save-your-brand-in-the-face-of-crisis/

Triantics, J 2013, Navigating strategic decisions: the power of sound analysis and forecasting, CRC Press, New York.

Turpin, S & Marais, M 2004, ‘Decision-making: Theory and practice’, Orion, vol. 20, pp. 143-160.

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