Merck Business Analysis

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Merck: Business Analysis
Merck is a flourishing research-driven pharmaceutical company, which discovers, develops, manufacturers, and promotes an extensive variety of human and animal health products. Although Merck is one of the biggest pharmaceutical companies of the world, they still come across problems today while striving to sustain a lead against its competition. Merck has achieved success with its lengthy history of breakthrough drugs and the development of three significant pharmaceutical products: antibiotics, vitamins, and hormones. Merck’s success relies heavily on its management and how they modify the business model in place to that of the ever-changing economy.
Influence of Economic Trends
The global pharmaceutical
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In Europe and Japan, where Merck is already implementing new models, the company is growing faster than the market and is ready for further growth.
Merck has also executed a distinctive strategy that entails starting a channel of communication with health care payers, usually insurers, before working on a new medical idea. “It is important because if you’re going to get your product approved in the future… you’ve got to understand what innovations are meaningful to your customer base, which includes payers” (Scheller, para. 5-16). Merck will also utilize a Chief Medical Officer, whose function is to be the voice of the patient or an advocate for patients.
Merck also uses a supply strategy that includes implementation of manufacturing procedures, a greater dependence on outside resources, and an explanation of its inside manufacturing system. This strategy intends to plan for the future how Merck will convey its products to the market. It puts forth Merck’s vision of being the most reliable and aggressive supplier of medicines and vaccines in the pharmaceutical industry. This new strategy is meant to improve their organizational focal point, competence, awareness to customer needs, and maintaining a competitive advantage for Merck.
As part of Merck’s global manufacturing strategy, they have been in existence in China since the 1980s through
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