15 Trang 5 The global pharmaceutical industry is widely known to be a highly competitive and dynamic sector that requires companies to constantly adapt and evolve their business strate
Overview of Pfizer
History development
In 1849, Pfizer was firstly found by Charles Pfizer and his cousin, Charles Erhart The business then set up to be Charles Pfizer and Company in Brooklyn, New York The Civil War (1861-1865) was a prime time of significant development for Pfizer It is noted that there were different medical supplies in high demand, therefore Pfizer was able to provide the front lines with preservatives, disinfectants, iodine, chloroform, and morphine In 1919, Pfizer invented a method for generating citric acid in large quantities, ending the dependency on imports from Europe In 1944, Pfizer produced penicillin massively and became the world’s largest producer
In 1952, the company established into greater scales as it extended into the field of animal health by acquiring the J.B.Roerig nutritional company and setting up a specialized research farm in Terre Haute, Indiana
In 2018, Pfizer and BioNTech committed to a contract to start thoroughly working into mRNA-based influenza vaccines In December 2020, the company became the first to receive an emergency use authorization from the FDA for a COVID-19 vaccine As April 2021, Pfizer and BioNTech had manufactured 316.5 million vaccine doses, which have been approved in 70 countries and territories
Since December 2020, nearly 4.6 billion Pfizer-BioNTech COVID-19 vaccines have been shipped to 181 countries, of which more than 1.8 billion have gone to low- and middle- income countries (Dangers, n.d)
Figure 1 Timeline for the development of the COVID-19 mRNA vaccine
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Mission, vision, and core value
Pfizer’s mission is to “become the world's most valued company to patients, customers, colleagues, investors, business partners, and communities.”
With the vision “Breakthroughs that change patients' lives”, Pfizer aims at innovation for product betterment and remaining competitive to make the world a healthier place First, Pfizer has always emphasized product innovation, which is reflected in its mission and vision statements The top pharmaceutical corporation concentrates on producing top-notch medical products and medicines Second, by working toward making the world a healthier place, the business demonstrates its dedication to creating and offering goods that directly enhance the health of the patient Pfizer states in its vision statement that improving patients' lives through product development is its top priority
Pfizer culture is driven by four core values: courage, excellence, equity, and joy (Pfizer, n.d)
Courage: Breakthroughs start by challenging convention, especially in the face of uncertainty or adversity They achieve this when they think broadly, speak up, and take action
Excellence: They can only change patients’ lives when they perform at their best together This occurs when people pay attention to what important, decide who does what, and track their results
Equity: They believe that every person deserves to be seen, heard, and cared for When they are inclusive, behave honourably, and lessen healthcare inequities, this occurs
Joy: Although they give themselves to their work, they also receive from it When they take pride, acknowledge one another, they are happy.
Current status on the global market & business industry
Pfizer Inc (Pfizer) discovers, develops, manufactures, and commercializes biopharmaceuticals Their products cure a range of ailments, including cancer, inflammation, rare diseases, metabolic, cardiovascular, metabolic, and pain disorders, as well as women's health issues Additionally, it offers contract manufacturing services, sterile injectable drugs, biosimilars, active pharmaceutical ingredients (APIs), and medicines Pfizer distributes its goods through distributors, merchants, pharmacies, hospitals, private physician offices, clinics,
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Kinh doanh quốc tế 100% (3)29 and public institutions Their primary manufacturing facilities are in India, China, Japan, Ireland, Italy, Belgium, Germany, Singapore, and the US (GlobalData, 2023)
Due to its COVID-19 vaccine, Pfizer has been in the spotlight since 2020 The first COVID-19 vaccination was developed by Pfizer and was broadly endorsed by national health authorities Pfizer is currently the top pharmaceutical firm in the world based on pharma sales revenue as a result of its enormous sales during the epidemic In 2022, the New York City- based business's overall income reached a new high of over 100 billion dollars, with about 42% of that coming from the US With a market valuation of more than 240 billion USD as of 2022, Pfizer was one of the top five most valuable pharmaceutical and biotechnology firms.
Analyze the international business strategy of Pfizer in the period of 2014- 2023
Analyzing the value chain model of Pfizer
Figure 2 Pfizer’s value chain model
Inbound logistics is associated with such activities as: receiving raw materials, storing them, and managing inventory As a leading global biopharmaceutical company, Pfizer owns a vast supply network that stretches throughout the world and offers capacity and redundancy as needed with more than 300 suppliers worldwide Hence, Pfizer's raw material supplies are always very stable, abundant, and decentralized from various nations
Although Pfizer’s inbound logistics in different countries have some changes to adapt to the laws and regulations of those nations, like regulations on material imports, inventory management, etc , Pfizer still sets a global standardized process and requirements for inbound logistics activities to ensure the raw materials quality, timeliness, and cost-effectiveness Pfizer always upholds very high standards, requirements, and environmental protection with all of its supply partners to guarantee a reliable supply, hence, Pfizer is extremely careful when choosing suppliers, negotiating contracts, and monitoring supplier performance Once arrived at Pfizer's facilities, raw materials have to undergo strict quality control to verify their quality, and quantity, as well as guarantee that they meet the necessary standards and adhere to regulatory requirements Additionally, Pfizer also implements a special security program that covers every step of production and delivery, including inbound logistics in every nation
In 2020, the breaking out of the COVID-19 pandemic disrupted Pfizer's global supply chain, while the demand for vaccines was increasing, Pfizer decided to develop its own raw materials to keep a stable vaccine supply for the epidemic season Not only does this shorten vaccine production time, but it also saves a part of the production costs, making the cost of vaccines affordable for everyone, including poor and underprivileged countries
The processes used in operations include those for converting raw materials into finished goods before launching them into the market, like: formulation development, production planning, packaging, quality control, and compliance with Good Manufacturing Practices (GMP)
With over 35 manufacturing sites equipped with state-of-the-art facilities spanning four continents , Pfizer assists in the yearly distribution of more than 50 billion doses of medications and vaccines to more than 181 nations, reaching over 1.3 billion patients, accounting for one- sixth of the people on earth Additionally, by leveraging the global supply chain with mass production, Pfizer can not only gain the benefits of economies of scale, which contribute dramatically to cost reduction , but also enhance the speed of manufacturing, leading to an increase in medicine supply around the world These also make up the competitive advantage of Pfizer in the pharmaceutical industry
The manufacturing of Pfizer has been decentralized to some extent as Pfizer wants to utilize benefits from such low labor costs and rich-labor countries as China, India, and Indonesia; nevertheless, the majority of operation was centralized in the USA and Europe where most of Pfizer’s manufacturing sites are located
Figure 3 Pfizer’s Global PGS Map (Source: Website of Pfizer)
As a long-established and leading company in the biopharmaceutical industry, Pfizer has applied extremely stringent product quality control to ensure that it is always providing customers with safe, effective products that meet regulatory requirements and other relevant standards and guidelines This is not only for the headquarter but applied consistently and synchronously in global manufacturing sites Accordingly, Pfizer formed a Quality Management System (QMS) to regulate and supervise all manufacturing processes to ensure the safety, quality, and efficacy of products
Outbound logistics refers to the procedures and activities involved in distributing and managing final products from a business's premises to its consumers With a more than 170- year history of development, Pfizer has established a vast distribution network that supplies more than 50 billion doses every year to more than 185 countries with 11 distribution centers and numerous distributors on multiple continents to reduce the risk of interruptions in the supply of vital medications and meet global demand Pfizer combines both centralized and decentralized distribution models in its outbound logistics activities to achieve the highest effectiveness and efficiency Besides focusing on delivering to 11 distribution centers - centralized distribution, Pfizer also distributes its products through various local distribution
11 networks, including local wholesalers, local distributors, local pharmacies, local hospitals, and local healthcare facilities to meet the huge local needs in the fastest way
As a result of the Covid pandemic's complicated development, Pfizer's distribution system has become more centralized , with the primary distribution channel being through 11 distribution centers and governments However, this does not imply that Pfizer doesn't use any decentralized distribution channels Instead of directly delivering to local distributors as before, Pfizer has participated in a multilateral distribution mechanism such as COVAX and international health organizations and coalitions like WHO, which are other forms of decentralized distribution This versatile combination of two delivery routes enables Pfizer to deliver vaccines in the fastest, safest, and most effective way possible With that remarkable and effective distribution process, Pfizer has successfully distributed millions of doses of its high-quality COVID-19 vaccines to over 165 countries, which makes Pfizer’s reputation spread all around the world and reach the peak point of Pfizer's business success
Pfizer's localization approach entails adapting marketing efforts to specific regions and nations while taking into account the particulars of each target market Pfizer customizes its products, messages, and services to suit the various requirements and cultural preferences of the local population Pfizer's localization strategy enables the business to strengthen its global client relationships and expand its market footprint
Pfizer's product strategy is centered on creating and offering high-quality and innovative pharmaceutical goods that guarantee compliance with safety and efficacy regulations as well as satisfy a variety of consumer needs from many different countries They have a diverse product portfolio, including disease treatments, vaccines, healthcare supplies, and personal care items Pfizer makes significant investments in R&D to release cutting-edge solutions that offer clients value in healthcare Additionally, Pfizer drugs are localized in terms of their designs, packaging, and usage instructions to fit each country's culture, language, customer preferences, medical standards, and safety standards Through this strategy, Pfizer has established a name for itself and won customers' trust in various markets in the pharmaceutical industry
Pfizer does not have any standard promotion strategy as Pfizer customizes its strategy to each nation in order to reach local customers more efficiently
As a pharmaceutical company, Pfizer cannot directly advertise its products to consumers Instead, Pfizer frequently promotes medicines to local hospitals and local medical professionals by organizing meetings and seminars with local doctors and other local healthcare professionals Pfizer additionally uses many local media for product promotion and medical information dissemination, including radio, print media, social media, and websites, depending on which platforms are popular in each country and how they can best appeal to local consumers' tastes and cultures In order to raise brand awareness and foster customer trust,
Pfizer also conducts local pharmaceutical education programs and local support programs, which gives it more opportunities to approach more local customers
In the pharmaceutical sector, Pfizer is a company that spends a lot on advertising Especially in the COVID-19 pandemic period, due to the company's significant investment in media, social networks, and celebrities bragging about their Pfizer injections, this vaccine has become a symbol of vaccination, generating tremendous revenue for the company
Pfizer offers a variety of top-notch customer services depending on each nation’s culture, medical regulations, and business environment, but has to follow Pfizer's global service standards to ensure service quality as well as to retain its loyal customers while also defending their safety and rights Some of Pfizer’s services include: customer support, pharmacovigilance
(PV), and medical information to address inquiries, adverse events reporting, and ensure safe and effective product usage Additionally, unlike many other pharmaceutical companies, Pfizer still bears responsibility when a drug turns into a generic one Pfizer continues to carefully monitor the quality, safety, and dependability of their generic medications rather than concentrating only on what is under development Thus, if consumers purchase generic drugs from Pfizer, they can still be assured of product quality and their rights
Reasons for Pfizer adopting transnational strategy
2.1 Business characteristics - VRIO framework analysis
In 1991, Jay Barney published an article titled "Firm Resources and Sustained Competitive Advantage" that served as the foundation for the VRIO framework, which was further elaborated in his book "Resource-Based Theory: Creating and Sustaining Competitive Advantage." In order to establish if a company can maintain a competitive advantage, it examines its internal resources and competencies Based on the four criteria of value, rarity, imitability, and exploitation by the organization, the Barney value-rarity-imitability- organization (VRIO) framework evaluates a company's talents and resources and the potential for competitive advantage that results The VRIO framework is displayed as below
The resources and capabilities identified from Pfizer are evaluated using the VRIO framework according to the following criteria: Valuable, rare, costly to imitate, and exploited by organizations
Value: The resource adds value when it enables the business to develop and put into practice plans that will increase productivity and effectiveness An attribute provides value and becomes a resource, departing from the conventional strengths, weaknesses, opportunities, and threats (SWOT) analysis (Barney, 1991) This is because it allows for the exploitation of opportunities and/or the neutralization of threats
Rareness: If the majority of competitors possess the same valuable resource, they will probably investigate its application in comparable ways, implementing the same value-creating approach This would prevent any business from gaining a competitive edge by possessing a valued resource (Barney and Zajac, 1994)
Imitability: If scarce and precious resources are easily imitated competitors will do so right away, eliminating any chance of a competitive advantage If a resource is path dependent (Dierickx and Cool, 1989; Vergne and Durand, 2011); if there is an ambiguous relationship between the resources that strengthens competitive advantage (Barney, 1995; Dierickx and Cool, 1989; Reed and DeFillipi, 1990); if a resource is socially complex, or if there are legal property rights, it is more difficult to imitate
Organization: Competitive advantage results from how businesses use organizational processes to produce what can be viewed as intermediate products between primary resources and the firm's final products (Pan et al., 2007) These intermediate products can be thought of as being produced between the firm's primary resources and its final products
Value Rareness Costly to imitate
Yes No Can be imitated
Yes Yes Yes Yes Strong Competitive
Yes Yes Yes Yes Strong Competitive
Yes Yes Yes Yes Strong Competitive
Yes Yes No Require higher budget
Temporary Competitive Advantage Product Portfolio and Synergy
No Yes Short term competitive advantage
Pricing Strategies Yes No No Yes Temporary
Competitive Advantage Ability to Attract
Yes Yes Difficult to imitate
Brand awareness Yes Yes No Yes Sustainable
Competitive Advantage Talent to Manage
Yes No Can be imitated
Yes No Yes Can Lead to Strong
Yes Yes Risk of imitation is low
Not yet utilized Strong Competitive
Yes No Can be imitated
Yes Medium to Long Term
Yes No Each of the firm has its own strategy
Yes Potential to build on
The brief analysis using the VRIO framework shows that the sustainable competitive resources of Pfizer include: Track Record of Leadership Team, Track Record of Project Execution, Customer Community, Ability to Attract Talent in Local & Global Markets, Brand awareness, and Intellectual Property Rights, Copyrights, and Trademarks The company resources have a rather sustainable competitive advantage and as a result to a strong competitive position
This report adopts a business analysis framework called Porter's Five Forces, which is frequently used to evaluate a company's corporate strategy as well as its industry structure, to explore the general development direction of the pharmaceutical industry The concept was first introduced in 1979 in a book by a Harvard Business School professor Michael E Porter It identifies and examines five competitive forces that influence every industry and aids in identifying a sector's advantages and disadvantages Through this analysis, Pfizer can deduce the pressure it has to face and choose the most suitable international business strategy
Moderate threat of substitute products
In addition to expensive specialized medication and branded drugs that make huge profits for Pfizer, a large part of Pfizer's revenue also comes from other generic medications such as: Lipitor, a medication that lowers cholesterol, and other top-selling drugs for the treatment of cancer and HIV/AIDS These goods are up against intense competition from Pfizer's main rivals Direct competition with Lipitor from Pfizer, including Zetia, a cholesterol- lowering medication made by Merk & Co Cancer and HIV/AIDS medications from Bristol- Myers Squibb or Johnson & Johnson are both excellent replacements for comparable Pfizer products
Although some drugs can be substituted, the demand for the products as a whole is robust and increasing, thus the overall force of alternative products for the pharmaceutical industry is moderate Additionally, several of the newest medications that generate the greatest profits for Pfizer are patent-protected and do not have generic equivalents Alternative medicine might be the only other substitute option, but the customers who prefer it aren't typically those who buy modern pharmaceuticals So long as the company continues to develop new medications, there won't be much of a threat from replacements
However, Pfizer still faces some pressure for cost reduction to ensure its price is not largely differentiated from its competitors in order not to be substituted
Low potential of new entrants
The pharmaceutical industry typically has substantial entry barriers in the form of expensive R&D costs, governmental regulations, and legal impediments Additionally, due to different reasons like purchasing power, sales teams, and advertising costs, smaller manufacturers find it challenging to compete with larger healthcare supply producers (Scribd,
2014) Some businesses have developed strong brand identities centered on quality and innovation, decreasing the possibility that hospitals will choose the product of a different business According to Wipperfurth et al (2010), access to early stage finance for start-up companies in the area is frequently challenging because the majority of businesses have strong technology protection through patents Therefore, the potential of new entrants is very low because new companies have limited resources, so it is difficult to have a competitive advantage with other large long-standing pharmaceutical companies New companies that want to survive in this field must either find a niche market to develop or compete with other large companies
To fend off these potential competitors, Pfizer must constantly raise entrance barriers
As a result, Pfizer has faced significant pressure from utilizing available advantages such as the cost of raw materials, technology, labor, and economies of scale to reduce production costs and improve efficiency This makes it more difficult for new businesses to enter the market
High bargaining power of suppliers
In the pharmaceutical industry, where raw materials are frequently relatively scarce, suppliers have a lot of negotiating power With the strict requirements for quality control, there are not many vendors on the market, which provides the suppliers significant leverage over Pfizer Since there aren't many companies that provide the machinery needed for manufacturing processes, these companies will also have a lot of negotiating leverage
Inversely correlated with supplier base concentration is suppliers' bargaining strength Due to their strategic importance to the operations of the buyer, suppliers who have a concentrated or small supplier base often have more influence over buyers A fragmented supplier base, on the other hand, gives customers more power by giving them more options for where to buy goods and services Pfizer operates in a sector with a tightly knit supplier base that is dominated by a select group of significant vendors This concentration of suppliers could give them additional negotiating leverage
Due to the high bargaining power of suppliers over Pfizer, it has been under considerable pressure to reduce production costs and manage the suppliers power to maintain competitive advantage and long-term profitability
High competition in the industry
As a vital and incredibly important segment of every person's life, the pharmaceutical industry is crowded with businesses vying for the same market According to Wipperfurth et al
Pfizer’s response to cost reduction pressure and local responsiveness pressure
Although pursuing a broad differentiation strategy, when entering the global market, Pfizer also faces high pressure for cost reduction With the goal of achieving cost savings while still maintaining production differentiation and quality, Pfizer has implemented the following activities to solve this pressure:
First, Pfizer has effectively utilized horizontal integration strategies Pfizer acquired some of its major competitors from 2014 to the present, including: Innopharma Inc, Anacor, This strategy allows Pfizer to have exclusive rights to some key pharmaceuticals, which generate significant revenue and provide it a competitive advantage over its competitors Furthermore, acquisition tactics bring a lower cost structure, which makes realizing economies of scale more achievable, as well as reduced resource duplication while still improving product differentiation, innovation, and market competitiveness
Second, Pfizer successfully took advantage of economies of scale by leveraging the global supply chain and mass production of generic drugs Pfizer possessed more than 35 production plants around the world, some of which were located in labor-rich and low-cost nations like China, Indonesia, and India This not only makes its goods more cost-savings but also accelerate the manufacturing process, allowing Pfizer to supply millions of doses of pharmaceuticals to various countries throughout the world and strengthening Pfizer's position in the pharmaceutical market
Third, Pfizer has consistently revolutionized and optimized its operations to enhance efficiency and productivity As a market leader in the pharmaceutical industry with powerful and plentiful capital, Pfizer invested heavily in state-of-the-art facilities and cutting-edge technology, particularly in automation, digitalization, and environmentally friendly technologies All of these contribute to process standardization, process efficiency, and cost reduction by reducing redundant expenses like personnel costs, energy consumption costs, maintenance costs, etc In addition to lowering labor costs, automation in production may
23 increase product quality, quantity, and productivity In the near future, Pfizer's investment in digitization may result in even greater cost savings if it can streamline some procedures while maintaining efficacy
Fourth, Pfizer has expanded and optimized its supply chain with the aim of providing drugs and vaccines to the consumer more effectively, rapidly, and safely Pfizer saves procurement expenses, lowers inventory holding costs, and boosts supply chain effectiveness by forming more strategic partnerships, negotiating better deals, continuing to implement horizontal integration, and enhancing inventory management systems
3.2 Response to high local responsiveness pressure
Pfizer operates in a dynamic and complex business environment that influences its transnational strategy Various factors shape the environment in which Pfizer conducts its business, including regulatory frameworks, competitive forces, technological advancements, and social expectations
Regulatory frameworks significantly impact Pfizer's operations As a pharmaceutical company, Pfizer operates in a highly regulated industry characterized by stringent safety and efficacy standards Compliance with regulations is essential for market access and maintaining public trust The evolving regulatory landscape poses challenges and opportunities for Pfizer, requiring the company to adapt its strategies and operations to meet changing requirements
Competitive forces also shape Pfizer's business environment The pharmaceutical industry is highly competitive, with numerous players vying for market share Pfizer faces competition from both large multinational pharmaceutical companies and smaller biotech firms Rival companies invest in research and development to develop innovative therapies and gain a competitive edge Pfizer must continuously innovate, differentiate its products, and demonstrate superior efficacy and safety to maintain a competitive position in the market
Technological advancements significantly impact Pfizer's operations and its transnational strategy The integration of computational modeling, bioinformatics, and AI allows Pfizer to analyze vast amounts of data, identify potential drug candidates, and streamline research processes, digital health solutions, etc Pfizer embraces these technologies to enhance its drug discovery and development processes, improve manufacturing efficiency, and optimize patient care Pfizer's transnational strategy involves leveraging these technological advancements to adapt its operations to local contexts and meet specific market needs
Social expectations and public sentiment also influence Pfizer's business environment
There is a growing demand for sustainable and responsible business practices, including responsible sourcing, environmental stewardship, and diversity and inclusion initiatives Pfizer recognizes these expectations and integrates them into its transnational strategy, i.e incorporates responsible sourcing practices, aligning with high ethical, social, and environmental standards, establishes a Supplier Code of Conduct and conducts audits and assessments to ensure suppliers comply with these standards By actively collaborating with suppliers, Pfizer enhances its reputation, builds trust with stakeholders, and strengthens its long- term sustainability
In response to the environmental factors discussed above, Pfizer has developed a transnational strategy that emphasizes high local responsiveness pressure The company recognizes the importance of tailoring its strategies and operations to local contexts to effectively navigate regulatory requirements, meet competitive challenges, leverage technological advancements, and address social expectations Pfizer's transnational strategy encompasses various aspects of its business, including procurement, technology development, human resource management, and firm infrastructure.
Evaluate the international business strategy of Pfizer
Achievements
Here are some of Pfizer's major achievements from 2014 to present:
Acquisition of Hospira (2015): Pfizer acquired Hospira in a $17 billion deal, strengthening its position in the global biosimilars market and expanding its portfolio of injectable drugs
Launch of Ibrance (2015): Pfizer's breast cancer drug, Ibrance, was approved by the FDA and launched in the US It has since become a blockbuster drug, generating over $4 billion in sales in 2020
Merger with Mylan (2020): Pfizer merged its Upjohn division with Mylan (Netherlands) to create a new company called Viatris, focused on bringing affordable medicines to patients around the world
Development of a covid vaccine (2020): Pfizer collaborated with BioNTech (Germany) to develop a COVID-19 vaccine, which has been authorized for emergency use by regulatory agencies in many countries
Revenue surged (2021): Revenue of Pfizer doubled compared to the previous year (2020), reaching 81,2 billion dollars, following the development of Pfizer covid vaccine (Statista)
Number of countries exported to reached 181 countries (2023): From 55 countries in 2015 to
Factors contributing to the success
Successfully taking advantage of economies of scale: As mentioned above, Pfizer gains the benefits of economies of scale by leveraging the global supply chain and mass production of generic drugs This has a significant impact on cost reduction and accelerates manufacturing, increasing the availability of medicines globally
Strong Research and Development Capabilities: As mentioned above, Pfizer is a leading global pharmaceutical company that invests heavily in research and development (R&D) to develop new and innovative treatments The company has a significant investment in R&D, with around $11,4 billion spent on R&D in 2022 according to Statista Pfizer has a collaborative approach to R&D, partnering with academic researchers, biotechnology companies, and other pharmaceutical companies to leverage expertise and knowledge within the industry Additionally, Pfizer has a global R&D organization that operates across six research centers worldwide The company uses a variety of research techniques and methods, including high-throughput screening, genomics, proteomics, and other advanced technologies to identify and advance potential drug candidates Pfizer's R&D pipeline includes a broad range of compounds that are in various stages of development, from preclinical studies to late-stage clinical trials
Strategic Acquisitions: Pfizer has a long history of making strategic acquisitions to strengthen its product portfolio For example, the acquisition of Warner-Lambert in 2000 helped Pfizer to gain access to Lipitor, which became one of the best-selling drugs of all time The acquisition of Hospira in 2015 expanded Pfizer’s portfolio of injectable drugs and biosimilars, which are lower-cost alternatives to biologic drugs.
Challenges of Pfizer in the global market
Intense Competition: There is intense competition in the pharmaceutical industry, and Pfizer faces competition from both branded and generic drugs This competition can make it challenging for Pfizer to maintain market share and pricing power
Regulatory Issues: The pharmaceutical industry is highly regulated, and Pfizer must navigate complex and constantly changing regulatory requirements in different countries.
Pricing Pressure: Healthcare costs are rising, and governments and payers are placing increasing pressure on pharmaceutical companies to lower drug prices This can impact Pfizer's revenue and profitability.
In conclusion, Pfizer's international business strategy from 2014 to the present has been characterized by a proactive and adaptive approach to navigate the challenges and opportunities in the global pharmaceutical market The company has successfully expanded its presence in new markets, forged strategic partnerships, tackled regulatory complexities, driven innovation, and implemented effective marketing and branding strategies
Pfizer's market expansion efforts have allowed it to establish a strong foothold in various international markets Through careful market analysis and strategic decision-making, the company identified key target markets and adapted suitable entry strategies, including acquisitions, joint ventures, and organic growth By establishing local manufacturing and distribution capabilities, Pfizer has been able to cater to local needs and enhance its competitiveness in different regions
In addition, Pfizer's commitment to research and development has been crucial in fostering innovation and supporting company expansion The business has significantly generated numbers of investments in the R&D aspect, concentrating on important therapeutic areas and technological breakthroughs This commitment to innovation has produced ground- breaking goods and therapies that have greatly influenced patient care and enhanced health outcomes on a worldwide scale
Effective marketing and branding strategies have been vital in establishing Pfizer as a trusted and recognizable brand in international markets The company has employed targeted marketing campaigns, product positioning, and market segmentation to effectively reach diverse customer segments These efforts have not only driven product uptake but also contributed to building a strong brand reputation
Overall, Pfizer's international business strategy from 2014 to the present reflects the company's commitment to growth, innovation, and adaptability in the global pharmaceutical industry By expanding into new markets, forging strategic partnerships, addressing regulatory challenges, driving innovation, and implementing effective marketing strategies, Pfizer has successfully positioned itself as a leading player in the international healthcare market As the company continues to evolve, it will be crucial for Pfizer to stay attuned to emerging trends, changing patient needs, and evolving regulatory landscapes to maintain its competitive edge and drive sustainable growth in the future
1 Drug Dangers (n.d.) Pfizer - History of Pfizer, Products & Legal Claims [online] Available at: https://www.drugdangers.com/manufacturers/pfizer/
2 Kevin, D (2023) The top 20 pharma companies by 2022 revenue [online] Fierce Pharma Available at: https://www.fiercepharma.com/pharma/top-20-pharma-companies-2022-revenue [Accessed 29 May 2023]
3 MBA Knowledge Base (2019) Case Study: Pfizer’s Strategy Analysis [online] Available at: https://www.mbaknol.com/management-case-studies/case-study-pfizers-strategy-analysis/
4 Thorn, C.R., Sharma, D., Combs, R., Bhujbal, S., Romine, J., Zheng, X., Sunasara, K and
Badkar, A (2022) THE JOURNEY OF A LIFETIME – DEVELOPMENT OF PFIZER’S COVID-19 VACCINE Current Opinion in Biotechnology, [online] 78, p.102803 doi:https://doi.org/10.1016/j.copbio.2022.102803
5 Pfizer.com (2015) Pfizer Completes Acquisition of Hospira | Pfizer [online] Available at: https://www.pfizer.com/news/press-release/press-release-detail/pfizer-completes-acquisition- hospira
6 Pfizer.com (2016) Pfizer Receives Expanded FDA Approval For IBRANCE (palbociclib)
In HR+, HER2- Metastatic Breast Cancer | Pfizer [online] Available at: https://www.pfizer.com/news/press-release/press-release- detail/pfizer_receives_expanded_fda_approval_for_ibrance_palbociclib_in_hr_her2_metastati c_breast_cancer
7 www.pfizer.com (n.d.) U.S FDA Approves Pfizer’s XELJANZ® (tofacitinib) for the Treatment of Active Polyarticular Course Juvenile Idiopathic Arthritis | Pfizer [online]
Available at: https://www.pfizer.com/news/press-release/press-release-detail/us-fda-approves- pfizers-xeljanzr-tofacitinib-treatment [Accessed 31 May 2023]
8 Pfizer (2020) Shot of a Lifetime: How Pfizer and BioNTech Developed and Manufactured a
COVID-19 Vaccine in Record Time | Pfizer [online] Pfizer.com Available at: https://www.pfizer.com/news/articles/shot_of_a_lifetime_how_pfizer_and_biontech_develop ed_and_manufactured_a_covid_19_vaccine_in_record_time
9 Statista (2018) Pfizer R&D expenditure 2006-2018 | Statista [online] Available at: https://www.statista.com/statistics/267810/expenditure-on-research-and-development-at- pfizer-since-2006/
10 www.pfizer.com (n.d.) Warner Lambert | Pfizer [online] Available at: https://www.pfizer.com/about/history/pfizer_warner_lambert
11 Mikulic, M (2023) Pfizer total revenue 2006-2022, Statista Available at: https://www.statista.com/statistics/266171/revenue-of-pfizer-since-2006/ (Accessed: 03 June
12 2015 ANNUAL REVIEW Human Health Impact > Global Reach WE’RE WORKING ON
EXPANDING OUR PRESENCE AND IMPACT WORLDWIDE (n.d.) Available at: https://www.pfizer.com/sites/default/files/investors/financial_reports/annual_reports/2015/ass ets/pdfs/pfi2015ar-global-reach.pdf
13 Pfizer (2021) Global Supply | Pfizer [online] Pfizer.com Available at: https://www.pfizer.com/products/how-drugs-are-made/global-supply
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