Strategy in the Twenty-First Century PharmaceuticalIndustry: Merck & Co. and Pfizer Inc. Case Solution
Thiscase illustrates theimportance of determining the changes in the pharmaceutical industry in the past couple of years, and to concludea strategic impact of the particular giant companiesthat operate within a certain level of countries. However, it can be said that Maersk and Pfizer were considered to be one of the fewlarge companies, whichdominated the market through their research and marketing techniques.
On the other hand, there are several changes involved in theindustry based on the developed as well as developing countries. Therefore, in orderto highlight these changes, it is identified that the cost of production and research was always high and is directly proportional to the changes in the sales and other earnings. Same was the case of Maersk because the company was continuously bringingshifts in the product line by investing in the research and development to provide blockbuster drugs within a particular season.
In contrastto it, Pfizer was delivering advanced marketing and sales techniques in order to boost itsproduct line globally, and itconsidered itself as a competitive force over the other market giants.With all these scenarios, it is said that there are many changes executed in this particular industry such asmerger and acquisition, Biotech advancement processes, technological advancements,research and development cost management, aggressive marketing of the product line,and etc. Over the past two decades, the changes involved transitions in the full-scale production instead of pilot production criteria.
The other changes include the technological advancements in the developed countries subjected to expansion in the developing nations in order to increase the profit margins. Moreover, global marketing was done considering the changes in the culture and management’s perspective directed towards the cost efficiency of the production and to implement the strategies of price sensitivities over the consumers’ perception.In addition to this, it can be determined that developing a drug in a new way would require making complex processes.
For further elaboration, it can be said that these drugs were subjected to massive costs in the research and developmental activities, which is why many of the small companies are still suffering from managing such costs, and most of them failed to execute due to the lack of technological advancement that they include due to high-cost factor. Under this scenario, only a few players that were subjected to market giants hadimplemented advanced technology to conclude the execution of the cost efficiency of the product research and development.
Therefore, Maersk is considered as a leader in the market as it comprises of advanced tools and techniques for the research and developmental activities. It also expanded its operations globally with complete product utilization and operational efficiency byproperlyexecuting the corporate strategies such asadvanced research and marketing techniques. Pfizer, on the other hand,is another market leader with full product diversification, since it consists of blockbuster product to the modified one.
Thus, it is concludedthat pharmaceutical industry is one of the high volatile industries in the world with continuous changes in the products and technologies to manage the health and disease problems as early as possible. In developing countries,suchtrend is highly demanded to overcome the health problems because under the countries, most of the people are suffering because of the stress involved with low-income criteria and who are unable to afford basic necessitieson a daily basis. On the other hand, improper health services are also considered to contribute towards the increase in the diseases. Therefore, it can be said that without proper production and use of the product and services, every developing nation would be unable to manage the things correctly.
Significant changes in the Pharmaceutical Industry and impact on firm’s positioning
There were several changes enabled to increase the market diversification in the particular industry. For the past two decades, many strategic implementations and modificationsconsist of merger and acquisition, technological advancements, Biotech new direction phase,and etc. First of all, asignificant change was subjected to shift the manufacturing process of the products from pilot to full-scale production.
However, such change createddifficulties for the emerging and small players in the markets because they lacked continuous technological advancements due tohigh cost. The second change included the changing process of developing a drug under the concept of molecular biology based. Many scientists were not happy to implement the mostcomplicated process to develop a drug due to their traditional mindset or perception to achieve in a stable process instead of expanding the process into more complex form....................................
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