edwards. shondrell mgt 6685 phizer case analysis
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Running head: PFIZER CASE ANALYSIS
Pfizer Case Analysis
Shondrell Edwards
Troy University
MGT 6685 XTIA Management Strategy Term 2, 2011
April 9, 2023
Dr. Chekwa
Author NoteShondrell Edwards, Student, Troy University.
Correspondence concerning this sample paper should be addressed to Shondrell Edwards, Student, E-mail: sameri@troy.edu.
Pfizer Case Study EDWARDS, SHONDRELL #1138929
Executive Summary
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer’s Vision, Mission, Objectives, and Strategy
Pfizer, Inc. is a research-based, global biopharmaceutical company whose diversified
global healthcare portfolio includes human and animal biologic and small molecule medicines
and vaccines, as well as nutritional products (Pfizer, 2010). The company was founded by
Charles Pfizer and Charles Erhart in 1849 and is headquartered in New York, NY. .Pfizer’s
Vision outlined in the text, was as follows: We will be recognized for meeting the diverse
medical needs of patients in Emerging Markets around the world in an innovative, socially
responsible and commercially viable manner”. This vision or intent of the company for future
dealings outlines the new prospects for business in developing countries. The company operates
in two commercial organizations which constitute two business segments: Biopharmaceutical
and Diversified. The Biopharmaceutical segment includes the Primary Care, Specialty Care,
Established Products, Emerging Markets and Oncology Customer-Focused units, which includes
products that prevent and treat cardiovascular and metabolic diseases, central nervous system
disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer,
eye disease and endocrine disorders, among others (Pfizer, 2010). The Diversified segment
includes Animal Health products that prevent and treat diseases in livestock and companion
animals; Consumer Healthcare products that include over-the-counter healthcare products such
as pain management therapies, cough/cold/allergy remedies, dietary supplements, hemorrhoidal
care and other personal care items; Nutrition products such as infant and toddler formula
products; and Capsugel, which represents its hard capsules business (Pfizer, 2010). The mission
statement of Pfizer says, “We will build bold and innovative partnerships, reach patients we have
never reached before, provide medicines and services at an affordable manner, be recognized for
having the best talent in healthcare, become a leading pharmaceutical company in emerging
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
markets”. The objectives are to become a leader in biologics, enter the vaccines market, expand
and investing and areas, strengthen leadership in emerging markets, create new opportunities for
established products, invest in complementary businesses, and establishing a lower and more
flexible cost base. The strategies for achieving this goal are to extend global health care
leadership, improve current performance by having a unique business model, having consistent
and stable earnings, and meeting the unmet needs of patients, physicians, and other customers
(The World's Premier Pharmaceutical Company, 2009).
Mission and Vision Statements
In response to the objectives and strategies, I propose the following vision statement:
“Pfizer will continue to lead the world by helping mankind across the world”. My proposed
mission statement is as follows: “Pfizer is more than medicine. We will help patients, human
and otherwise to become healthy as possible with our products and continue to develop cutting
edge methods, provide our great products at affordable prices, while satisfying ethical and
environmental concerns”.
Pfizer External Opportunities and Threats
Pfizer has many opportunities for growth, due to their strengths. Pfizer’s opportunities
include 1) Proposed Wyeth acquisition 2) Global growth 3) Expansion into biologics/vaccine
market 4) Partnership with other countries
Pfizer’s threats include 1) Regulation hurdles in the United States and European
Commission 2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc, Celebrex, and
Bextra lawsuits abroad. 4) Major competition in the pharmaceutical industry 5) Over the counter
drug availability.
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer Competitive Profile Matrix (CPM)
Stage one (1) of the strategy analytical framework is the input stage where a CPM, IFE,
and EFE are created for the company. The purpose of a Competitive Matrix analysis is to
critically profile and compare your firm against known competitors.
As you can see from the table above Merck has the lowest score, which shows they have
the strongest position.
Pfizer External Factor Evaluation (EFE) Matrix
External Factor Evaluation (EFE) matrix method is a strategic management tool that
shows current business conditions, visualize, and prioritize the opportunities and threats that a
business is facing. The EFE matrix is concerned solely with external factors. External factors
assessed in the EFE matrix are the ones that are subjected to the will of social, economic,
political, legal, and other external forces. As you can see from the chart, Pfizer total weighted
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
score for its External Factor Evaluation (EFE) Matrix is 2.92, which shows average response to
existing opportunities and threats in its industries. The current strategy utilized is average, but
will need to be improved to keep Pfizer in the top position amongst all competitors.
Pfizer’s Internal Strengths and Weaknesses
Pfizer has many strengths and as such those things have contributed to the company
being strong and succeeding this long. Pfizer’s strengths are as follows: 1) Pharmaceuticals
dominate the majority of the business units within Pfizer 2) Lipitor is the strongest drug in its
category 3) Pfizer has the largest market cap in the world 4) Pfizer’s employee workforce is the
largest in the world .5) Pfizer’s program of helping those who need drugs and lost jobs has
helped build a loyal customer base. 6) Pfizer is very active and known in politics 7) Greatest
marketing power
Pfizer has had extremes of all factors, meaning their good things are great, and their bad
things are extremely bad. Pfizer’s weaknesses are 1) Pfizer’s continued problem with disobeying
regulations 2) Many patent protections ending and Food and Drug Administration (FDA) issues
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
in 2010 3) Customer disapproval due to medicines not being approved and/or safe. 4) Finances
need more visibility 5) Lowest earning per share (EPS) although ranked ahead all competition 6)
FDA 7) Changes in health care coverage may impact Pfizer's sales.
Pfizer Internal Factor Evaluation (IFE) Matrix
The IFE Matrix together with the EFE matrix is a strategy formulation tool that can be
utilized to evaluate how a company is performing in regards to identified internal strengths and
weaknesses of a company. Pfizer total weighted score for its Internal Factor Evaluation (IFE)
Matrix is 2.64, and that score shows the company has possesses a very strong internal position
within the industries.
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer SWOT Matrix
Strengths
1) Pharmaceuticals dominate the majority of the business units within Pfizer 2) Lipitor is the strongest drug in its category 3) Pfizer has the largest market cap in the world 4) Pfizer’s employee workforce is the largest in the world5) Pfizer’s program of helping those who need drugs and lost jobs has helped build a loyal customer base. 6) Pfizer is very active and known in politics 7) Greatest marketing power
Weaknesses
1) Pfizer’s continued problem with disobeying regulations 2) Many patent protections ending and Food and Drug Administration (FDA) issues in 2010 3) Customer disapproval due to medicines not being approved and/or safe. 4) Finances need more visibility5) Lowest earning per share (EPS) although ranked ahead all competition 6) Changes in health care coverage may impact Pfizer's sales.
Opportunities
1) Proposed Wyeth acquisition2) Global growth3) Expansion into biologics/vaccine market 4) Partnership with other countries
Threats
1) Regulation hurdles in the United States and European Commission2) Pfizer will have to take on Wyeth’s possible litigation 3) Norvasc, Celebrex, Bextra lawsuits abroad4) Over the counter drug availability
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer SPACE Matrix Values and Dimensions
CA -1 (best) to -6 (worst) IS +1 (worst) to +6 (best)
FS -1 (best) to -6 (worst) ES +1 (worst) to +6 (best)
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer Completed SPACE Matrix
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5
4
3
2
11 2 3 4 5 6
This particular SPACE matrix tells us that our company should pursue an aggressive
strategy, and has a strong competitive position in the market with rapid growth. It needs to use
its internal strengths to develop a market penetration and market development strategy. Some
suggestions are product development, integration with other companies, and acquisition of
competitors.
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Aggressive-Suggested strategy type
Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer BCG Matrix
Viagra is in the dog category because it has been found that a safer herbal supplement can
produce the same results with less risk. Pfizer must consider the question marks of the generic
drugs, and if they should venture into that area or continue their research and development.
Lipitor and Zoloft catapulted the company into its number one position.
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Phizer IE Matrix
Strong Average Weak
4High
3HOLD AND MAINTAIN
Medium2
1 Low
4 3 2 1
The IFE matrix score for Pfizer is 2.64, which means they have an above-average internal
strength. The EFE matrix for Pfizer is 2.92, which suggest a less than average ability to respond
to external factors. The total weighted score calculated on this page is 2.78, which points at a
company with an above-average internal strength. Cells IV, V, and VI suggest the hold and
maintain strategy. For Pfizer this means tactical strategies should focus on market penetration
and product development.
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EFE Score 2.92
IFE Score 2.64
Pfizer Case Study EDWARDS, SHONDRELL #1138929
Pfizer GSM Matrix
Pfizer is in Quadrant 1 of the GSM. Pfizer has competitive situation and rapid market
growth, and is in excellent strategic position. Therefore, Pfizer must focus on current market and
appropriate to follow market penetration, market development, and products development are
appropriate strategies.
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Pfizer GSM
Pfizer Case Study EDWARDS, SHONDRELL #1138929
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
Stage 3 is the QSPM, which is the decision stage for the strategy framework.
Pfizer Recommended Strategies, Objectives, Policies, Review, and Evaluation
My recommendations for Pfizer are as follows: (1) Focus on short-term goals and
orientation when it comes to working with drugs that have a patent expiration coming up. (2)
Continue their focus on customer relationship to build customer loyalty and have their brand
become the preference, due to the number of pharmaceutical companies in existence today. (3)
Continue cutting edge technology of pills that can treat more than one ailment (Caduet). (4)
Make safety a number one priority by providing more information about their products, side
effects, and consumption. (5) Continue and focus on global expansion and international sales.
(6) Consider lowering prices to compete with competitors.
Pfizer is able to maintain their spot at the number one position. Pfizer trail blazes in a lot
of new ways, such as their joining the United Nations Global Impact (that focuses on corporate
responsibility and citizenship). The Research & Development business unit has been very
successful as far as their new developments and this is where spending exuberant amounts of
money has paid off for Pfizer. Between their workforce, investments in R & D, and global goals
Pfizer should continue to dominate the pharmaceutical market. Pfizer should adopt the
expansion program and indulge in backward, forward, or horizontal integration in a careful way
that includes biannual review and evaluation. Pfizer may also want to exploit the external
opportunities and magnify the wealth in numerous areas of dealings.
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Pfizer Case Study EDWARDS, SHONDRELL #1138929
REFERENCES
2010 Financial Report (2010). Pfizer.com. Retrieved from http://www.pfizer.com/investors/financial_reports/financia l_reports.jsp
American Psychological Association (2010). Publication Manual of the American Psychological
Association (6th ed.). Washington, DC: American Psychological Association. Company Symbol PFE (2011). MSN Money. Retrieved from
http://investing.money.msn.com/investments/company-report? symbol=PFE David, F. (2011). Strategic management: Concepts and cases (13th ed.). New Jersey: Prentice
Hall.
Pfizer. (2010, September 30). Retrieved October 30, 30, from CNN Money: http://money.cnn.com/quote/profile/profile.html?symb=PFE Pfizer, Inc. and Subsidiary Companies (2010). 2010 Financial Report. Retrieved from
http://www.pfizer.com/files/annualreport/2010/financial/fi nancial2010.pdf Pfizer, Inc. (2011). Pfizer’s commitments for a healthier world. Retrieved from
http://www.pfizer.com/files/about/pfizer_commitments.pdf PricewaterhouseCoopers (2007). Pharma 2020: The vision. Which path will you take? Retrieved
from http://www.pwc.be/en/pharma/pdf/Pharma-2020-vision- PwC-09.pdf.
The World's Premier Pharmaceutical Company. (2009, January 26). Retrieved October 30, 2011, from Pfizer : http://www.pfizer.com/files/investors/presentations/q4earnings_january012509.pdf
U.S. Department of State (2011). Why population aging matters: A global perspective. Retrieved from http://www.imshealth.com/portal/site/imshealth/menuitem.a9 53aef4d73d1ecd88f611019418c22a/vgnextoid=bb967900b55a5110V gnVCM10000071812ca2RCRD&vgnextfmt=default
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www.strategyclub.com S& P Industry Survey material in the college library
http:// finance. yahoo. com or http:// moneycentral. msn/ investor/ home. asp
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