Pfizer is one of the world’s largest pharmaceutical companies. It is an America based pharmaceutical company. The headquarter is in New York. It was founded in the year 1849. The two founders of Pfizer are cousins Charles Pfizer and Charles F. Erhart. It started its journey as a manufacturer of fine chemicals. SWOT Analysis of Pfizer will elaborate it’s internal and external condition.
Pfizer produces and distribute medicines and vaccines for a wide range of medical products and satisfy a wide variety of needs. These products include the medications of oncology, immunology, cardiology, endocrinology, and neurology.
Throughout the history of the operations of Pfizer, it has received numerous awards in many areas. The areas include business operations, corporate governance, and retention of employee, workplace safety, and philanthropy. The company also received honors for providing the innovative prescription medicines and pharmaceutical products.
SWOT Analysis of Pfizer
Strengths of Pfizer
- Market Leader – one of the market leaders in the industry. It made revenue of US$48.85 billion in the year of 2015.
- Size – Pfizer is the largest pharmaceutical company in the US pharmaceutical industry.
- Historical Background – has a long historical background of producing and providing healthcare products.
- Strong Knowledge Base – as it is one of the oldest pharmaceutical company in the industry, it has built a strong knowledge base of its markets.
- Experience – staying for long time in the market (founded in the year 1849), it gathered a strong experience base about the business.
- Reputation – The business or selling of drug companies is related to the reputation it earns.
- Pfizer was ranked in the second-most familiar among 14 drug companies. It was analyzed by the Reputation Institute.
- Research and Development – It maintains a strong R&D department. It budgeted 7690 Million USD in the year 2015 for R&D department.
- Global Presence – Pfizer operates in 180 countries. By this, it has ensured strong global presence.
- Strong Workforce – as of December 2015, it had approximately 78,300 employees.
Weaknesses of Pfizer
- Low Spending in R&D comparing to its competitors – I allocates lower expenses for R&D department comparing to its competitors. It can make Pfizer weaker as the R&D is the heart of a pharmaceutical company.
- Reducing Budget for R&D – Moreover, it reduced the budget for R&D in the recent years.
- Affected Brand Reputation – when working with other companies to achieve market advantage, it may achieve bad reputation as well. Because, there maybe are some external factors on which the company does not have direct controls.
Opportunities for Pfizer
- Increasing demand in Developing countries – people are becoming more caring to their health. It will increase the sales of healthcare products.
- Merger and Acquisition – Pfizer can acquire more companies to grow larger.
- Strategic Partnership with other companies – it will create scope to make more business in developing countries where the main competitors are local pharmaceutical companies.
- Broader Portfolio – portfolio diversification may increase the stabilization in the profit or may grow it further.
Threats for Pfizer
- Competition – there is increasing competition in the pharmaceutical industry.
- Price War – Price war between competitors may result in price reducing pressure. It may reduce the profit margin in future.
- Government Regulation – There is intensive government regulation in the sector of healthcare products. So, Pfizer maybe is developing a new product but, a government regulatory board may not be agree to accept that product in their country.
- Economic Downturn – this happens in the developed countries. It may result in decrease in sales.
- Negative Publicity –
- Cheap Substitutes – there are chances of growing substitute products which can be offered at lower price. It may result in reduction of sales.
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