Value Chain Analysis of AstraZeneca 

AstraZeneca PLC is a biotech and pharmaceutical Anglo-Swedish multinational corporation. The merger of Zeneca Group and Astra AB founded the pharmaceutical company AstraZeneca. Today, we’ll discuss the value chain analysis of AstraZeneca; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Substitutes of AstraZeneca

  • Pfizer
  • Merck & Co.,
  • GSK
  • Bristol Myers Squibb,
  • Vivus,
  • Sangamo Therapeutics, 
  • Johnson & Johnson
  • Eli Lilly
  • Novartis AG,
  • Abbott,

The Value chain analysis of AstraZeneca would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s AstraZeneca value chain analysis company example as follows;

Value Chain Analysis of AstraZeneca

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of AstraZeneca. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of AstraZeneca

Some of the five main primary activities in the value chain analysis of AstraZeneca are as follows;

Inbound Logistics of AstraZeneca

I-Suppliers Network

According to an estimate, AstraZeneca deals with approximately 57,000 suppliers and manufacturing partners across the world. They help the pharmaceutical brand to ensure the smooth supply of pharmaceutical drugs, raw supplies, and devices. The company has divided its suppliers into three categories and they’re as follows;

  • Indirect Suppliers (97%) – offer various supplies like office equipment, travel, and office supplies
  • Direct Suppliers Non-Critical (3%) – products and goods for manufacturing operations
  • Critical Direct Suppliers (1%) – offer active pharma-ingredients, devices, packaging, formulation

II-Quality Control

AstraZeneca performs quality control audits on its suppliers to make sure that its suppliers and partners are engaging in the right quality control practices. The auditing criteria comprise of following elements and they’re as follows;

  • Sustainable procurement practices
  • Environmental performance
  • Human rights practices
  • Labor
  • Ethics

Outbound Logistics of AstraZeneca

I-Distribution Partnership

AstraZeneca has recently partnered up with Yusen Logistics (a healthcare logistics service provider). The strategic partnership helps the company to ensure the global distribution of pharmaceutical drugs and medicines. They employ all the channels and medium through sea, air, and road. However, the objective is to ensure the timely delivery of drugs and medicines to the end consumers.

Operations of AstraZeneca

I-Multiple Processes & Operations

AstraZeneca engages in multiple series of operations ranging from research study, production and manufacturing, quality control, testing, marketing, distribution, strategic alliance, and partnerships. The objective of all these processes and operations is to find the cure for diseases and develop medicines and drugs for customers.

II-Sustainable Operations

Sustainability is the core area of the pharmaceutical brand AstraZeneca’s operations. The company plans to establish a sustainable future for the planet, society, and people. However, the pharmaceutical brand employs the latest biotech and scientific innovations to make a positive impact on the environment, healthcare system, and society.

  • Building green labs to promote the culture of sustainable science
  • Reforestation and Biodiversity Initiative
  • Decarbonising respiratory care
  • Health heart Africa
  • Decreased the carbon emission rate by 59.3% since 2022
  • Clean heat and renewable sources of energy

Marketing & Sales of AstraZeneca

I-Sustainable Brand Image

AstraZeneca has successfully established a sustainable and green brand image in a world that is moving towards clean energy, de-carbonization, and renewable sources of energy. Since the pharmaceutical brand has already taken all these steps, it helps the company to easily sell its green medicine and drugs.

II-Medical Reps

AstraZeneca follows the medical industry practices of promoting and selling medicines and drugs through medical reps. They have a great network of medical practitioners, doctors, and pharmacists and they prescribe medicines to the patients. Promoting and marketing through medical reps help the company increase its sales and market reach.

Services of AstraZeneca

I-Patient Focused

AstraZeneca has a strong commitment to scientific innovation, finding the cure for the disease, and producing sustainable medicines for patients and customers. The objective of the pharmaceutical brand is to build a healthy and sustainable future for the people, society, and the environment.

Supporting Activities of AstraZeneca

Some of the main supporting activities in the value chain analysis of AstraZeneca are as follows;

Infrastructure of AstraZeneca

AstraZeneca has established a corporate infrastructure along with research and development labs, production and manufacturing facilities; strategic alliances, and partnerships with distributors and suppliers across the globe. The strong and diverse infrastructure helps the smoothly perform its operations.

HRM of AstraZeneca

AstraZeneca employed approximately 83,000 employees to manage its global operations. The human resource department of the pharmaceutical brand plays a key role in recruiting and building a diverse workplace environment. However, it provides equal opportunity to all the candidates regardless of their racial, gender, or ethnic background. The company has achieved the following awards;

  • Best Place to Work – 2022
  • Bloomberg Gender-Equality Index – 2022
  • Top 50 Companies of Diversity – 2022
  • Leaders in Diversity by Financial Times – 2022

Technological Development of AstraZeneca

According to an estimate, AstraZeneca invested approximately 9.762 billion USD in research and development in 2022. The objective of the R&D facilities of the pharmaceutical brand is to find the right cure and medicine for the right patients. The R&D area focuses on the following elements;

  • Inspiring people with curious minds
  • Harnessing technology and data
  • Learning from patients
  • Inclusively working

Procurement of AstraZeneca

AstraZeneca is highly careful and cautious about sustainable procuring. In fact, the company has set up clear guidelines and standards for suppliers to implement sustainable practices while purchasing raw supplies and materials for the company. It focuses on the following areas;

  • Sustainable purchasing strategies
  • Improved environmental performance
  • Human right practices
  • No exploitation of labor
  • Ethics

Conclusion: AstraZeneca Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of AstraZeneca; we have realized that AstraZeneca is the world’s leading pharmaceutical brand. If you are learning about the AstraZeneca value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.

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