Pfizer and the Challenges of the Pharmaceutical Industry A Case Solution

2. Targeting high-priority medicines

Pfizer target some of the most high-priority therapeutic areas, including oncology, neurological disorders, pain management, etc. making the most demanded drugs (Renate Kratochvil, 2019). Pfizer has the patent for the commonly used drugs in the United States and the rest of the world, including Advil, Lyrica, Celebrex, Viagra, etc. The ownership of these patented drugs differentiates them from other companies producing the generics. Lipitor is the most profitable prescription drug in the world. Listerine, Nicorette, Benadryl, Sudafed, Visine, Purell, and other over-the-counter drugs are manufactured in the consumer healthcare category. The demand for many drugs increases as the population ages and becomes prone to more physical and psychological conditions. Overall, a combined development of Over The Counter (OTCs) and prescription medication has helped the company boost its sales.

3. Loyalty establishment and acquisition of multiple companies

Establishing brand loyalty takes time and effort, and Pfizer has a competitive edge in the pharmaceutical industry as it is one of the oldest in the market. Pfizer has devoted clients who believe in their products since they bear the Pfizer name. Smaller businesses struggle to make the public aware of their product's existence. In contrast, larger pharmaceutical corporations like Pfizer have substantial sales and marketing teams as well as well-established advertising budgets and plans. Furthermore, without a demonstrated track record, smaller or start-up enterprises may struggle to persuade companies of their product's reliability. Larger corporations recognize that this gives them a competitive advantage over smaller companies; therefore, they strive for synergistic benefits by purchasing companies with promising research. Pfizer has done the same by doing mergers with multiple companies, including Warner Lambart, for $111.8 million (mainly to get control of the drug Lipitor). It has also taken acquisition of many notable vaccinations, including Hospira for 16.1 billion dollars, Anacor for $4.9bn, and Medivation for $14.3bn. These acquisitions have greatly transformed the pharmaceutical dynamics for them and have made them a leading brand in the industry (Renate Kratochvil, 2019). 

4. The huge international market of Pfizer

Pfizer has a huge international market. By 2017, they had extended their operations to more than 55 countries in the world. Over there, Pfizer has gained the trust of the population through conducting certain activities, including Research on different diseases, their management, prevention, and cure. They have also created awareness regarding different conditions and have altered their strategies intelligently, keeping in mind the cultural aspect. An example of this is their work in India and China. India is the largest hub for the R&D of Pfizer in Asia, and by building 4 Research centers and five drug manufacturing units, Pfizer has developed its strength in Asia. Pfizer has also partnered with the Indian Institute of Technology to work on innovation in the healthcare sector. Its partnership with IIT has encouraged innovators to come up with comprehensive modern technology software to bring transformations to the healthcare sector.