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Pfizer Case Analysis
Pfizer Case Analysis
Analysis
CEO:
Fast Facts
Location:
New York, USA (Corporate Headquarters)
The History of
Pfizer
1849
1862
1880
1891
Founded
Charles
Pfizer &
Company
First
domestic
production of
tartaric acid
& cream of
tartar
Begun
production
of citric
acid
Death of
Charles
Erhart
1900
1919
1928
1936
Offered
shares
of
commo
n stock
to the
public
Successfully
pioneered
mass
production of
citric acid
from sugar
Alexander
Fleming
discovered
the
antibiotic
properties
of
penicillin
mold
Developed
a
fermentatio
n free
method for
producing
ascorbic
acid
Key Products
Pharmaceuticals
Cardiovascular and
Metabolic Diseases
Arthritis and
Pain
Ophthalmology
Urology
Endocrine Disorders
Infectious and
Respiratory Diseases
Oncology
Animal Health
Animal Health
Vision
We dedicate ourselves to
humanitys quest for longer,
healthier, happier lives through
innovation in pharmaceutical,
consumer, and animal health
products.
Mission
Internal
Assessment
Financial Analysis
Financial Charts
$116,000
$115,268
$115,000
$114,837
$114,000
$113,000
$112,000
$111,148
$111,000
$110,000
$109,000
2006
2007
2008
Financial Charts
$50,000
$53,592
$43,479
$40,000
$30,000
$20,000
$10,000
$0
2006
2007
2008
Financial Charts
$48,000
$47,000
$46,849
$46,000
$45,000
$44,000
$43,076
$43,000
$42,000
$41,000
2006
2007
2008
Financial Charts
$27,009
$25,000
$21,389
$21,835
2006
2007
$20,000
$15,000
$10,000
$5,000
$0
2008
Financial Ratios
Current Ratio
2.5
2.2
2.0
2.1
1.6
1.5
1.0
0.5
0.0
1
Financial Charts
2006
2007
2008
Financial Charts
$71,358
$65,010
$57,556
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
2006
2007
2008
Financial Ratios
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.0
2006
2007
2008
2006
Financial Charts
$114,837
$114,000
$113,000
$112,000
$111,148
$111,000
$110,000
$109,000
2006
2007
2008
Financial Charts
$20,000
$19,337
$15,000
$10,000
$8,144
$8,104
2007
2008
$5,000
$0
2006
Financial Ratios
ROI
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
2007
2008
0.1
0.0
0.0
0.0
2006
2006
Financial Charts
$71,358
$65,010
$57,556
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
2006
2007
2008
Financial Charts
$20,000
$19,337
$15,000
$10,000
$8,144
$8,104
2007
2008
$5,000
$0
2006
Financial Ratios
ROE
0.3
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.0
2006
2007
2008
2006
Management Analysis
Marketing Analysis
Current Markets
Marketing Strategies
Market Development
Market Penetration
Penetration of the current market in the US
during the recession
Vision
(Emerging
Markets)
Mission
(Emerging
Markets)
We will
Develop bold and innovative partnerships
Reach patients we have never reached before
Provide medicines and services in an
affordable manner
Be recognized in having the best talent in
healthcare
Become a leading biopharmaceutical
company in Emerging Markets
Research and
Development
R&D Facilities
Location
E-commerce
Pfizer.com
Strengths and
Weaknesses
Strengths
Strengths
Weaknesses
Weaknesses
Internal Factor
Evaluation (IFE)
Matrix
1.
Strengths
One of the largest pharmaceutical company in the world and spread over more
than 50 countries
2. Excellent research and development (R&D) creating innovative and
breakthrough products
3. Mergers and acquisitions with big pharmaceutical companies increasing brand
reputation
4. Has over 100,000 employees as a part of the organization
5. Strong brand name and recall globally
6. Number one pharmaceutical from sales point of view and its marketing
infrastructure is well established throughout the world
7. Therapeutic coverage is very large and the innovative researchers are
broadening it further
8. Well established reputation for years on number of products
9. Wide range of area being worked, that includes human health, animal health,
customer health, and corporate groups
10. Involved in licensing agreements with different companies for collaborative
research work
1.
2.
3.
4.
5.
6.
7.
Weight
Rating
Weighted
Score
0.03
0.12
0.05
0.15
0.07
0.28
0.04
0.07
3
3
0.12
0.21
0.05
0.20
0.03
0.09
0.05
0.15
0.04
0.16
0.07
0.21
Weighte
Weaknesses
Weight Rating d Score
Tough competition from other major pharmaceutical brands means limited scope
0.08
2
0.16
for market share growth
Negative brand image due to involvement in largest healthcare fraud of
0.05
2
0.10
marketing its drug illegally
Very limited penetration of biologics market
0.09
2
0.18
Marketing with other companies and merging with other pharmaceuticals can
0.05
3
0.15
halter its global popularity
Overreliance on the mature market (U.S.) and a small number of distributors
0.02
2
0.04
Irrational drug policies such as bringing over 70 percent of the drugs under price
0.03
4
0.12
control
Inadequate infrastructure for fermentation-based drug remedies and effluent
0.04
3
0.12
External
Assessment
Competitive Forces
Competitors
Vaccines
Prescription Drugs
Consumer Products
Animal Health
Strategies:
Competitors
Bayer AG
- Bayer HealthCare
- Bayer CropScience
- Bayer MaterialScience
Strategies:
Competitors
Novartis AG
-
Pharmaceutical
Alcon Eye care
Sandoz Generics
Over-the-counter
Strategies:
Product Development
Related Diversification
Mergers and Acquisitions
Competitive Profile
Matrix (CPM)
CPM
CompetitiveProfileMatrix(CPM)
PFIZER
CriticalSuccessFactors
Advertising
NOVARTIS
MERCKCo.
Weigh
Rating Score Rating Score Rating Score
t
0.05
4
0.20
3
0.15
3
0.15
BAYER
Rating
Score
0.15
MarketPenetration
0.10
0.30
0.30
0.40
0.30
CustomerService
0.09
0.36
0.18
0.36
0.27
StoreLocations
0.04
0.16
0.08
0.12
0.08
R&D
0.14
0.42
0.56
0.56
0.42
EmployeeDedication
0.09
0.27
0.18
0.36
0.27
FinancialProfit
0.10
0.40
0.40
0.20
0.40
CustomerLoyalty
0.06
0.18
0.12
0.18
0.18
MarketShare
0.10
0.40
0.30
0.20
0.20
ProductQuality
0.09
0.27
0.27
0.27
0.27
TopManagement
0.05
0.15
0.15
0.10
0.10
PriceCompetitiveness
0.09
0.27
0.36
0.27
0.27
Totals
1.00
3.38
3.05
3.17
2.91
Economic Issues
U.S. Economy
Recession
Proposed Acquisition
of Wyeth
Potential Benefits
Opportunities and
Threats
Opportunities
Opportunities
Threats
Threats
External Factor
Evaluation (EFE)
Matrix
2.
3.
4.
5.
Weighte
Opportunities
Weight Rating d Score
Strategic agreements with other pharmaceutical companies and organizations to
0.09
3
0.27
boost its research.
Increasing awareness about healthcare needs
0.06
3
0.18
Global penetration through mergers and acquisitions
0.07
4
0.28
Increasing demand for quality healthcare solutions
0.07
3
0.21
Restructuring strategy designed to cut costs and leaner company
0.03
3
0.09
6.
7.
1.
0.02
0.07
3
4
0.06
0.28
0.05
0.03
0.04
3
2
4
0.15
0.06
0.16
Weighte
Weight Rating d Score
0.04
2
0.08
Threats
1.
2.
0.05
0.15
3.
0.03
0.06
4.
0.06
0.18
5.
0.08
0.24
6.
0.07
0.27
7.
0.04
0.12
0.03
0.06
0.04
0.16
0.03
0.09
1.00
8.
9.
TOTALS
2.88
Strategy
Formulation
SWOT Matrix
Strengths
1.
2.
3.
4.
5.
6.
7.
8.
9.
Weaknesses
Opportunities
Threats
1.
2.
3.
4.
5.
6.
7.
8.
SO Strategies
ST Strategies
WO Strategies
WT Strategies
SPACE Matrix
SPACE Matrix
FINANCIAL POSITION
STABILITY POSITION
Rate of Inflation
-4
Leverage
Technological Changes
-3
Liquidity
-4
Working Capital
Competitive Pressure
-4
Cash Flow
-3
4.6
-3.6
COMPETITIVE POSITION
INDUSTRY POSITION
Market Share
-2
Growth Potential
Product Quality
-3
Financial Stability
Customer Loyalty
-2
Technological know-how
-4
Resource Utilization
-2
Profit Potential
Conservative
-6
-5
-4
-3
Defensive
-2
CP -7
FP
7
-1
-1
-2
-3
-4
-5
-6
-7
SP
Aggressive
Xaxis
Yaxis
1.4
1.0
Integration
Strategies
Market
Penetration
Market
Development
Diversification
Strategies
3
4
5
6
7 IP
Competitive
BCG Matrix
BCG MATRIX
International
Profits
15,326,250,000
20,059,000,000
Revenues
20,435,000,000
27,861,000,000
RelativeMarketSharePosition
HighMedium
Low
1.0.50
High+20 0.0
Star
Question Mark
US
Internationa
l
Medium
Cash Cow
Dog
BCG MATRIX
Animal health
Corporate/Other
Profits
35,339,200,000
2,118,750,000
778,200,000
Revenues
44,174,000,000
2,825,000,000
1,297,000,000
RelativeMarketSharePosition
HighMediumLow
High+20 1.0.500.0
Star
Question Mark
Pharmaceutica
ls
Animal Health
Corporate
Medium 0
Cash Cow
Dog
Internal-External
Matrix
Average
Weak
4.0 to 3.0
IFE
3.06 I
EFE 3.08
2.99 to 2.0
II
1.99 to 1.0
III
4.0
High
Pfizer
Integration Strategies
Intensive Strategies
3.0
IV
VI
Grand Strategy
Matrix
Weak
Competitive
Position
Quadrant II
Quadrant III
Quadrant I
Integration
Strategies
Pfizer
Intensive
Strategies
Related
Diversification
Strong
Competitive
Position
Quadrant IV
Quantitative
Strategic Planning
Matrix
Recommendations
Recommendation
Strategy
Implementation
Potential Risks
Regulatory Hurdles
Increases Pfizers debts
Assumption of Litigations of Wyeth
Cost cutting and Lay-offs
End