Strategic Analysis Of Pfizer

1. INTRODUCTION

This is the second of three reports I will complete as part of the strategic analysis of Pfizer. This report focuses on strategy analysis and includes the following sections. First, the major concepts related to generic, corporate and international strategies analysis will be defined. Second, those concepts will be applied to the case of Pfizer in order to analyze its strategies. The analysis of Pfizer will be followed by its evaluation to identify the major problem the company is facing and propose a solution that Pfizer can adopt. A short conclusion will close the report.

2. CONCEPTS This section will define the concepts involved in using generic, corporate, and international strategies. These basic concepts defined will

In this section I will define the following corporate strategies. Horizontal integration occurs when a business expands its control over other similar or closely related businesses. Vertical integration occurs when a business expands its control over other business that are part of its overall manufacturing process. Related diversification is a process that takes place when a business expands its activities into product lines that are similar to those it currently offers. Unrelated diversification is a process that takes place when a business expands its activities into product lines that are not similar to those it currently

Pfizer has little pressure to respond to local wishes. This is also due to the fact that Pfizer cannot apply adaptations to a product which has costs years to develop and has costs millions to market. This is also supported by the fact that Pfizer licenses their products on very strict terms which do not allow any changes to the drugs. Since Pfizer needs to maximize returns during the patent protected time of its products it should use an International strategy.

4. EVALUATION

4.1. Problem:

The problem Pfizer is some unsuccessful partnership experience with companies in foreign markets. One factor that resulted in unsuccessful partnership experience were internal high pressure to achieve a foot hold in the market place by using joint ventures.

4.2. Solution:

One solution to lowering unsuccessful partnership is for Pfizer to adapt to the changing environment by morphing into a dynamic company that is well-positioned for the future of pharmaceuticals industry. That uses a hybrid approach to conquering foreign markets utilizing a multitude of strategies. Pfizer should continue to expand overseas to take advantage of changes in the global economy. Further, expansion overseas will lessen the Company’s reliance on the U.S. economy which is becoming less of a profitable environment due to the entrance of the government via Medicare Part D and through our national health