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AstraZeneca Business Model Canvas

Astrazeneca Business Model Canvas
Source: wikimedia, Edited By Grey Knight

A Brief History of AstraZeneca

AstraZeneca PLC is a British-Swedish multinational pharmaceutical and biopharmaceutical company that was formed through the merger of Astra AB of Sweden and Zeneca Group PLC of the United Kingdom in 1999. Astra AB was founded in 1913 in Södertälje, Sweden, and focused on developing and manufacturing pharmaceuticals. Zeneca Group PLC was formed in 1993 through the demerger of Imperial Chemical Industries (ICI), and it primarily focused on the agricultural chemicals and pharmaceuticals sectors.

After the merger, AstraZeneca became one of the world’s leading pharmaceutical companies, with a strong focus on research and development in the areas of oncology, cardiovascular, respiratory, and neuroscience. The company has a global presence and has continued to expand its product portfolio through acquisitions and partnerships with other pharmaceutical companies.

AstraZeneca has been at the forefront of developing innovative treatments for a wide range of diseases and has contributed significantly to advancements in medical science. The company has also been actively involved in efforts to expand access to healthcare in developing countries and has partnered with various organizations to address global health challenges.

AstraZeneca is headquartered in Cambridge, United Kingdom, and continues to be a major player in the pharmaceutical industry, with a strong commitment to improving patient outcomes and addressing unmet medical needs.

Who Owns AstraZeneca?

AstraZeneca PLC, a multinational pharmaceutical and biopharmaceutical company, is owned by a diverse group of shareholders. The top 10 shareholders of AstraZeneca PLC as of September 2021 are as follows:
1. BlackRock, Inc.
2. Norges Bank Investment Management
3. The Vanguard Group, Inc.
4. Capital Research & Management Co.
5. Dodge & Cox
6. Schroders plc
7. Legal & General Group plc
8. AXA S.A.
9. Massachusetts Financial Services Co.
10. Lindsell Train Ltd. These institutional investors and investment management firms hold significant stakes in AstraZeneca, contributing to the company’s diverse ownership structure.

AstraZeneca Mission Statement

AstraZeneca PLC’s mission statement is to “push the boundaries of science to deliver life-changing medicines.” The company is committed to creating innovative, high-quality pharmaceutical products that make a meaningful difference in patients’ lives. AstraZeneca strives to continually advance the field of medicine through extensive research and development efforts, ultimately leading to improved health outcomes for individuals around the world.

How AstraZeneca Makes Money?

AstraZeneca PLC operates within the pharmaceutical industry, specializing in the development, manufacturing, and marketing of prescription drugs. The company generates its revenue primarily through the sale of its pharmaceutical products, including treatments for a wide range of medical conditions such as cancer, cardiovascular disease, respiratory ailments, and gastrointestinal disorders. Additionally, AstraZeneca earns income through partnerships, collaborations, and licensing agreements with other pharmaceutical companies. The company’s revenue stream is bolstered by its global presence, with operations in numerous countries worldwide. AstraZeneca’s business model revolves around investing in research and development to bring innovative drugs to market, thereby generating revenue through the sale and distribution of these products.

AstraZeneca Business Model Canvas

The Business Model Canvas is a strategic management tool that provides a visual representation of a company’s business model. It is a one-page framework that allows businesses to understand and communicate how they create, deliver, and capture value. It consists of nine key components, including Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partners, and Cost Structure. In this Business Model Canvas for AstraZeneca PLC, we will explore each of these components in detail.

Customer Segments:

1. AstraZeneca PLC targets both healthcare providers and patients as its primary customer segments.
2. The company also focuses on reaching out to research institutions and government agencies.
3. AstraZeneca caters to a global customer base, addressing the needs of diverse demographics and geographic locations.

Value Propositions:

1. AstraZeneca offers innovative pharmaceutical products and solutions that aim to improve patient outcomes.
2. The company is committed to advancing scientific research and development to address unmet medical needs.
3. AstraZeneca prioritizes patient safety, access to medicines, and healthcare sustainability in its value propositions.


1. AstraZeneca utilizes direct sales channels to reach healthcare providers and institutions.
2. The company also leverages digital platforms and online resources to engage with patients and consumers.
3. AstraZeneca partners with distributors and wholesalers to ensure product availability and delivery to various markets.

Customer Relationships:

1. AstraZeneca maintains strong relationships with healthcare professionals through personalized interactions and medical education initiatives.
2. The company engages with patients and advocacy groups to understand and address healthcare needs.
3. AstraZeneca fosters collaborations with government agencies and regulatory bodies to ensure compliance and regulatory support.

Revenue Streams:

1. AstraZeneca generates revenue through the sales of prescription pharmaceutical products and biologics.
2. The company also earns revenue from licensing and collaborations with other pharmaceutical companies and research organizations.
3. AstraZeneca may receive royalties and milestone payments from successful products and partnerships.

Key Resources:

1. AstraZeneca’s key resources include its scientific expertise, research and development capabilities, and intellectual property portfolio.
2. The company relies on its manufacturing facilities, distribution networks, and supply chain infrastructure to support its operations.
3. AstraZeneca values its talented workforce, including scientists, medical professionals, and business leaders, as key resources.

Key Activities:

1. AstraZeneca engages in extensive research and development activities to discover and develop new pharmaceutical products.
2. The company conducts clinical trials, regulatory submissions, and partnerships to advance product pipelines.
3. AstraZeneca also focuses on marketing, sales, and market access activities to promote and commercialize its products.

Key Partners:

1. AstraZeneca collaborates with research institutions, academic centers, and government agencies to access scientific expertise and funding opportunities.
2. The company forms strategic partnerships with biotechnology companies and other pharmaceutical organizations to enhance its product portfolio.
3. AstraZeneca may engage with patient advocacy groups and healthcare providers as key partners in disease awareness and education efforts.

Cost Structure:

1. AstraZeneca incurs costs in research and development, including preclinical and clinical studies, intellectual property protection, and regulatory compliance.
2. The company invests in manufacturing and supply chain operations to ensure product quality, safety, and accessibility.
3. AstraZeneca also allocates resources to marketing, sales, and general administrative expenses to support its commercial activities.

AstraZeneca’s Competitors

AstraZeneca PLC faces strong competition in the pharmaceutical industry from several major players. The top 5 competitors of AstraZeneca PLC are Pfizer Inc., Novartis AG, GlaxoSmithKline plc, Merck & Co., Inc., and Johnson & Johnson. These companies are well known for their extensive product portfolios and global presence, posing a significant challenge to AstraZeneca in the highly competitive market. AstraZeneca must continue to innovate and develop new drugs to stay ahead of its formidable competitors.

AstraZeneca SWOT Analysis


1. Strong portfolio of pharmaceutical products
2. Focus on research and development
3. Global presence and market reputation
4. Strong financial performance


1. Dependence on a few key products
2. Patent expiration on some key drugs
3. Litigation and regulatory challenges
4. Reliance on partner organizations for drug development


1. Expansion into emerging markets
2. Development of new products and therapies
3. Strategic partnerships and acquisitions
4. Growing demand for healthcare in developing countries


1. Competition from generic drug manufacturers
2. Regulatory challenges
3. Pricing pressures in major markets
4. Potential disruptions in the supply chain due to geopolitical or environmental factors.

Concluding Analysis

So, based on my analysis, I believe that AstraZeneca PLC has a strong business model that is poised for continued success in the future. With a focus on innovative drug development, strategic partnerships, and a diverse portfolio, the company is well-positioned to maintain its competitive edge in the pharmaceutical industry. While there may be challenges and uncertainties ahead, I am optimistic about the company’s ability to adapt and thrive in an ever-changing market. In my opinion, AstraZeneca PLC is a promising investment with the potential for long-term growth and success.

Additional Resources

To keep learning and advancing your career, we highly recommend these additional resources:

Business Model Canvas of The Top 1,000 Largest Companies by Market Cap in 2024

A List of 1000 Venture Capital Firms & Investors with LinkedIn Profiles

Peter Thiel and the 16 Unicorns: The Legacy of Thiel Fellowship

9 Biggest IPOs of All Time

List of Fortune 500 Companies in 2023

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