Pfizer and the Challenges of the Global Pharmaceutical Industry

Pfizer and the Challenges of the Global Pharmaceutical Industry

Pfizer and the Challenges of the Global Pharmaceutical Industry
Case Study



Introduction
This report is to summarize the results of Pfizer’s challenges on global pharmaceutical industry and analyze driving factors of competition. I briefly give the industry definition describing the scope of the analysis. The paper has the following major goals:

  1) To analyze the current situation, major competition challenges and   the prospects of the pharmaceutical industry;
  2) To assess Pfizer’s position as a major players of the global pharmaceutical industry and make a comparative analysis of other business practices and financial results using the VRIO method;
  3) To recommend Kindler opportunities for further strengthening of their positions by conducting Porter 5 forces.

Pharmaceutical Industry Overview
Historically, the pharmaceutical industry has developed, produced and marketed one of the most profitable and high margin drugs for many years. This industry has gone through substantial changes in the last few decade and pharmaceutical firms face major challenges, including headline-grabbing litigation, imminent patent expirations, new technologies, rising drug development costs, generic drug substitution, international competitors, and complex public policy issues.
Competition Challenges and Prospects
A firm must develop a product-market diversification strategy otherwise it may face substantial setbacks once the product loses momentum. It’s important to know- what percentages of revenue do pharmaceutical companies get for each product segment. Table 1.1 contains information about these major pharmaceutical companies that are sorted in the order of their 2007 revenues from the sales of pharmaceutical products.
Table 1.1. Major pharmaceutical companies Analysis.
Company | Location | Total Revenue | Product | Product Profit in Million, USD | Revenue % |
Johnson & Johnson | U.S. | 53,324 | Risperdal | 11,053 | 20.7% |
Pfizer | U.S....

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