This SWOT analysis of Pfizer enumerates the strengths, weaknesses, opportunities, and threats that affect the business in reaching its long-term strategic objectives in multinational operations. Pfizer’s strengths and weaknesses (internal strategic factors) shape business capabilities, competencies, and organizational conditions for profitable operations. Pfizer’s opportunities and threats (external strategic factors) influence market and industry conditions affecting the outcomes of the company’s strategic implementations. The results of this SWOT analysis yield information for some recommendations that can improve the performance of the company in the global pharmaceutical and biotechnology industries.
The factors in this SWOT analysis determine the opportunities and limits that affect the satisfaction of Pfizer’s mission statement, vision statement, and business purpose. For example, the company’s strengths represent capabilities for growing based on opportunities in the biopharmaceutical market. Such business growth contributes to the industry leadership goals derived from Pfizer’s mission and vision.
Pfizer’s Strengths
Pfizer’s strengths in this SWOT analysis case are business capabilities and internal factors that promote the company’s growth despite competition, regulatory issues, and other challenges in the pharmaceutical and biotechnology industries. The following competitive advantages are Pfizer’s strengths:
- High equity of Pfizer brands
- Strong patent protection
- Extensive global distribution capabilities
Pfizer’s brands have high equity that helps maximize the profitability of the company’s medicines and vaccines. For example, the company’s name on a medicine label can increase the product’s sales revenues based on consumer trust in the name and brand. In this SWOT analysis case, high brand equity ensures the competitiveness of Pfizer products against lesser-known biopharmaceutical brands.
With its strong patent protection, Pfizer has the ability to maximize its profit margins for drugs and vaccines that have active patents. This internal strategic factor supports the company’s competitiveness in various biopharmaceuticals markets, especially the U.S., European Union, and Japan.
Pfizer’s extensive global distribution capabilities optimize global market reach and are a business strength in this SWOT analysis. These capabilities are based on the company’s carefully developed and maintained connections with distributors and wholesalers. The company’s control of these connections through contractual agreements is a competitive advantage in marketing medicines, vaccines, and other products.
Pfizer’s Weaknesses
Pfizer’s weaknesses are business characteristics and internal factors that limit or decrease the company’s capabilities to compete and grow its multinational business. In this SWOT analysis case, the following issues are Pfizer’s weaknesses:
- High price points of many Pfizer products
- Dependence on a limited number of high-revenue popular drugs
- High R&D costs compared to competitors in some other countries
Considering the pricing strategies in Pfizer’s marketing mix (4Ps), the high price points of many of the company’s products maximize profit margins but are also a business weakness. For example, relatively high prices make the company’s medicines less attractive to price-sensitive buyers, including patients in developing countries.
Pfizer has strong patent protection. However, active patents apply to a limited number of biopharmaceutical products. Such a limitation is a weakness in this SWOT analysis case, especially regarding generics that compete with many of the company’s products. These generics offer comparable potency at a fraction of the cost to customers, patients, or healthcare organizations.
Pfizer’s high research and development costs are a weakness in this SWOT analysis because of the relatively lower R&D costs of some competitors, such as pharmaceutical and biotechnology firms based in China. With this internal factor, Pfizer may find it difficult to compete with low-cost manufacturers and their lower-priced products in some regional markets.
Opportunities for Pfizer
Pfizer’s opportunities are external factors that support growth and development in this SWOT analysis case of the biopharmaceutical business. The following factors are opportunities for Pfizer’s business:
- New ventures with other biotechnology and pharmaceutical firms
- A bigger market share through novel biopharmaceuticals
- Enhance R&D for rapid response to health crises
The Business Innovation operating segment of Pfizer’s business structure (corporate structure) supports partnerships with other firms for the development of biopharmaceutical technology, products, and processes. In this SWOT analysis case, through this segment and other areas of its business organization, Pfizer has opportunities for new products that can add new revenue streams and increase the company’s market share.
Pfizer’s research and development efforts continue to focus on breakthrough products for current needs in the global market. The corresponding opportunity in this SWOT analysis is the attainment of a bigger market share through competitive breakthrough biopharmaceuticals resulting from such R&D efforts.
Pfizer’s research and development efforts relate to another opportunity in this SWOT analysis. Enhancing R&D can lead to higher revenue potential based on more rapid response capabilities to address health crises, such as pandemics. Enhancing R&D must account for industry trends that affect Pfizer. These trends reflect changes in the market and the kinds of biopharmaceuticals needed in target markets and healthcare systems.
Pfizer’s generic competitive strategies and intensive growth strategies influence how opportunities benefit the business. For example, the extent of the implementation of the competitive strategy of differentiation affects the breakthrough biopharmaceuticals that the company develops for gaining a bigger market share.
Threats against Pfizer
The threats to Pfizer are external factors that can lead to lower sales, a weaker market presence, and other strategic issues. In this SWOT analysis case, the following challenges are threats to Pfizer’s business:
- Low-cost and low-price competitors (generics)
- Biosimilars (vs. patent-protected Pfizer products)
- Counterfeits
Low-cost and low-price competitors of Pfizer products are a threat in this SWOT analysis case, especially in developing countries where these competitors abound. For example, price-sensitive customers are more likely to buy low-cost and low-price generic medicines instead of more expensive Pfizer products in these markets.
Biosimilars are products with different active ingredients that have similar effects or benefits to patients. In this SWOT analysis case, competitors, like Johnson & Johnson and Eli Lilly, can develop and manufacture biosimilars and reinforce the competitive challenges and obstacles affecting Pfizer and the global pharmaceutical and biotechnology industries.
Counterfeits are also a competitive threat against Pfizer. Even though counterfeits exist only in some markets with weak regulatory implementation, these products still pose a threat to Pfizer. For example, counterfeit products can erode the Pfizer brand equity in affected markets.
Recommendations – SWOT Analysis of Pfizer
This SWOT analysis of Pfizer enumerates internal factors (strengths and weaknesses) and external factors (opportunities and threats) that indicate opportunities for the biopharmaceutical business. These opportunities may create new revenue streams or improve the company’s current operation. The following recommendations address the factors in this SWOT analysis of Pfizer:
1. Establish additional partnerships with other firms for business innovation related to biopharmaceuticals. For this recommendation, the operations of Pfizer’s Business Innovation operating segment must adjust accordingly for partnership opportunities considered in this SWOT analysis of the pharmaceutical business.
2. Improve information campaigns and Pfizer’s marketing mix (4P) to address issues linked to competition with generics and biosimilars, as well as counterfeiting, which can be an issue in many developing countries.
3. Consider new joint ventures with other biopharmaceutical companies for the development and innovation of products. This recommendation relates to the opportunities in this SWOT analysis of Pfizer. New joint ventures may also provide ways for addressing trade barriers affecting the pharmaceutical and biotechnology industries.
4. Enhance Pfizer’s CSR and ESG programs by extending their reach into more markets to mitigate the impacts of the threats in this SWOT analysis case. This recommendation can help manage the competitive effects of generics and biosimilars, as well as counterfeits.
References
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