Pfizer Inc. Business Analysis and Strategic Implications

3386 WordsMay 1, 200714 Pages
PFIZER INC. BUSINESS ANALYSIS AND STRATEGIC IMPLICATIONS OVERVIEW OF THE COMPANY Pfizer Inc. is a global pharmaceutical company that creates and manufactures products for both humans and animals. Pfizer is headquartered in New York City and employs about 115,000 people. PRINCIPAL PRODUCTS AND SERVICES Pfizer currently has ten different divisions and promotes thirty-one different major products. The divisions and largest major products within each group are: Cardiovascular and Metabolic Diseases (Lipitor, Caduet, Norvasc), Central Nervous System Disorders (Aricept, Geodon, Lyrica, Zoloft), Diabetes (Exubera), Arthritis and Pain (Celebrex), Infectious and Respiratory Diseases (Diflucan, Zithromax), Urology (Detrol, Viagra),…show more content…
Fourth, Pfizer must streamline the business processes in order to reduce costs and improve shareholder returns. The Economist Magazine mentions that all 110,000 Pfizer employees were recently sent a memo, written by the newly named CEO named Jeffrey Kindler, informing them that they all must "focus make good and strong decisions in order to reduce costs". EXTERNAL ANALYSIS Porter's five forces model of competitive pressure can be used to analyze the global pharmaceutical industry. Three forces are sources of "horizontal" competition: product substitutes, established rivals, and new industry entrants. Two forces are sources of "vertical" competition: bargaining power of suppliers and buyers. COMPETITION FROM PRODUCT SUBSTITUTES The threat of substitution of new products can be high or low depending on the type of product offered. If there are two similar products in the market then there is a high threat of substitution of new products. Pfizer's Zyrtec allergy medicine faces high threat from substitute products because of the availability of over-the-counter and generic allergy products that are available. If a product is unique to the industry, then there is low threat of substitution. Pfizer takes a pro-active approach against the threat from product substitutes by making and marketing generic versions of their drugs through the generic subsidiary named Greenstone. Most recently, as of July 1, 2006, Greenstone is making the generic version of

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