Pfizer Company: A Presentation of Strategic Context

Pfizer is the number two largest biomedical and pharmaceutical look into and development companionship in the world, boasting in excess of fifty Billion dollars per family in gross revenues. While the recession has hit many companies, the bioengineering and pharmaceuticals sector has remained not only relatively insulated, but in plus to that the forecasting models for growth predict a pro crackable future.Pfizer has had its sh be of suppuration pains, a cause for reduction in gross revenues comes primarily from a growth strategy to acquire another large biopharmaceutical come with, yet kale arrested earnings have continued to increase at a rate of six percent annual average each course of study everyplace the last three twelvemonths. After Pfizers acquisitions of Wyeth they saw a substantial increase in operating profit margins due to change magnitude efficiencies between the two companies. Pfizer has recently acquired a biopharmaceutical go with named Wyeth.By get Wye th which specializes in vaccines, Pfizer has broadened their customer base by expanding their product line. This duty radiation diagram aligns with Pfizers current pro-growth Strategy. It is clear, in most part Pfizers bloodline Strategy aligns with the wild wild west model of Industry Ecosystems. Pfizer if a relatively fast growing company, in an industry that thrives on making fast and furious technological discoveries, and they have a real high-pitched rate of customer retention due to patent fosterion.Pfizer has many competing technologies in the foodstuff place for such diseases as cardiac health, mental health, and pathogenic disease treatments. Their drug Lipitor is by far the highest grossing drug the company currently has on the market. Cardiac disease is the most common and lethal disease that Ameri provokes face. Lipitor functions by lowering low density lipids (or fats) in the blood stream thus promoting cardiac and circulatory efficiency and health.Pfizers pate nt on Lipitor is set to expire in November of this year which would potentially topic in reducing their good revenues for that drug importantly because other companies could then introduce a generic shift. The net subject of Lipitors patent expiration on Pfizers laughingstock line could be a reduction as large as ten percent of total gross revenues.Pfizer would be expected to retain approximately twenty percent of users which equals tetrad percent of Pfizers total Gross Revenues. Some customers ill continue to use Lipitor, for example those patients whose policy does cover name brand medicines or patience of physicians that reject report prescriptions for generic substitutes. This problem is a perfect example of one of Porters let on strategy principals that Pfizer follows, analyzing and protecting a threat of substitute products. How Pfizer addresses the problem is how they lick his strategy. The current estimated retail cost of Lipitor is around one degree Celsius and se venty dollars per month depending on the prescribed dosage.After November of this year it is very possible that we could see a generic substitute on the Wal-Mart four dollar list. Part of Pfizers Business strategy has been to launch juristic battles for patent protections and extensions longer than the November 2011 date, which would result in a prolonged stop of increased earnings and profits. To continue with an analysis of strategy, Pfizer uses both a combining of the resource establish view in conjunction with the industry investing prospective. An example of this would be Pfizers acquisition of Wyeth which catered to a much broader and divers(prenominal) section of the drug market.The resource prospective would say that Pfizer already has long research and development capabilities, drug production and manufacturing systems, and puff up established scattering channels for its already long list of products, making Wyeth a fit for the companys growth and expansion strategies . What is different from the resource base view and supports the industry investment strategy is that Wyeth is a leading researcher, developer, and provider of vaccines, which is a very lucrative industry in and of its self.The numbers of users for vaccines are much larger than for a specialized product such as Lipitor, yet vaccines still have patent protections that stand by drug companies withstand prices high. These two companies merged together have much greater and sustainable competitive advantages than either one by itself. One of the resources that will help to fend off threats to their product lines is their pooling of resources for their in house legal team. As new products emerge from the research and development scientists, their joint capacity to protect their drug assets and keep products in the hands of the end users will unavoidably eep other drug companies from capitalizing on the opportunities to produce generics.Some of the more high-flown and inimitable prod ucts are the ability to produce ample financial gains for Pfizer if they wipe out through all the stages of FDA screening protocol. Some areas Pfizer is currently investing research and development dollars are, DNA specific drugs, new small molecule compounds, antecedent Cell therapies, Amino Acid therapies. DNA specific drugs have huge potential for Pfizer because many side effects can be stay freshed, allergies can be detected, and a shorter time line for approval to the FDA can result from better drugs.New small molecule compounds are useful because they incline to have fewer side effects which equal fewer liabilities and risk of exposure for the producer, and can be easier to develop and manufacture. Stem cell research as well as opens up a great deal of opportunity for drugs that work well on the cellular and molecular(a) level, but can even be toxic or fatal in the human body. The method of drug delivery is many times the largest hurdle in getting an legal drug to the reaction site to produce the desired effect.Finally, and quite mayhap most interestingly there are over three degree Celsius and twenty know amino acids. Our human bodies produce or lend oneself only twenty four of them. Many of the reaction mechanisms on the molecular level can be imitated or recreated by unnatural amino acids meaning that we may see a huge increase in effective drugs with decreased side effects by utilizing these products. In completion Pfizer has acquired a great addition to its company with Wyeth as part of its pro-growth business strategy.It is clear that they have used a combination of both resourced based and industry based strategy. By tapping into a broad mass market via a new product by a new company Pfizer will have a clear competitive advantage over companies like Merk and Novartis. Pfizer is definitely leveraging their human resource assets to prevent substitute products from entering the markets. I believe that by exercising these strategies Pfizer can prevent slipping into the creative destruction life stage of a company.