Strategic Plan SWOT Analysis Pfizer, Inc.

Team #9 Taylor Salomon, Susan Thorp, and Caitlan Scott Due Date: October 9, 2013

Pfizer, Inc. is an international, multi-billion dollar pharmaceutical company headquartered in New York City, New York. It began as a fine-chemicals business in Brooklyn, New York founded by cousins Charles Pfizer and Charles Erhart in 1849. Since then, Pfizer, Inc. has been recognized as a powerhouse in the pharmaceutical industry by associates as well as competitors. The main products and services that Pfizer offers are pharmaceutical medications as well as research into the development of new medications and treatments. Lipitor, one of the most highly prescribed medications in the United States, is manufactured by Pfizer as are Viagra, and Zoloft. Pfizer also has a vast array of over-the-counter consumer health products including Advil, Robitussin, and ChapStick. Pfizers customer base centers on people who suffer from various illnesses and ailments. These customers are generally looking for relief and treatment of their symptoms or a cure for their affliction. In trying to reach their core group of consumers, a portion of Pfizers customers are hospitals and other health care facilities. The main focus of Pfizers pipeline to their consumers is networking. Due to the fact that Pfizers main products are prescription medications, they are largely unable to communicate with their consumers without a third party involved. Their pharmaceutical medications are shipped to various pharmacies and doctors offices as the main way of legally getting into the hands of their patients. Since Pfizers products are tangible items, they are usually shipped via commercial transportation modes such as airplanes and trucks. As for the services Pfizer provides through research, these items are not generally available to its customer base other than through clinical trials in a hospital setting.

As one of the leading pioneers in the pharmaceutical industry, Pfizer has a number of unique strengths that help stabilize and grow their company. Undoubtedly one of the most vital strengths to the past, current, and future success of Pfizer is their size and wealth. Bringing in $59 billion of revenue in 2012, Pfizer is the biggest pharmaceutical company in the world. Pfizer also demonstrates an important strength as it proves its staying power with a strong and elite research and development team. The most commonly prescribed medication in the world is the cholesterol medication Lipitor which Pfizer formally introduced in 1997. Since then Pfizer has rolled out some of the most common prescription medications in the world including Enbrel and Zithromax. In conjunction with this, Pfizer also has some drugs in their pipeline that, if successfully tried and marketed, are sure to be big hits such as ones that treat Diabetes, chronic pain, and Asthma. As the creator of many popular medications, one of the most highly valued strengths for Pfizer is their patent protection over some of their common products. For instance, Celebrex is a drug that treats arthritis. Some components of this medication are patented by Pfizer until at least 2014. This is just one example of many prescriptions that Pfizer owns the rights to ensuring their continuance as a pharmaceutical powerhouse for years to come. One of Pfizers more overlooked strengths is their marketing strategies. Pfizer has a unique way to appeal directly to consumers, such as television ads, rather than go through third parties such as doctors or hospitals. In doing so the company creates a rapport with their customers which helps to build a level of trust and bridges most gaps.

Although Pfizer has established itself as one of the top pharmaceutical companies in the world (currently the top pharmaceutical company) Pfizer is not without weaknesses. One of the strengths that Pfizer relies on is the patents to many popular medications. On the flipside of that is the fact that these patents eventually expire. For example, the patents for Lipitor and Viagra have both expired which allows generic versions of these medication giants to hit the markets. As the patents expire, Pfizer loses revenue to the cheaper generic choices. Another weakness that Pfizer encounters is shared with most pharmaceutical companies. As a medication manufacturer as well as a research and development company, it is not completely unheard of for Pfizer to have to abandon a medication in the late stages of development or trial. When this happens the company has lost not only time, but also the money they put into the medication as well as any possible revenue they may have gained from the medication making it from development to production. For example, a highly anticipated Alzheimers medication named Dimebon failed in the late stages of trial. It was found to have no greater affect than a placebo. Being one of the largest pharmaceutical companies in the world can also be construed as a weakness for Pfizer. Because the company is so large, the corporate operations are much more complex than those of smaller competitors. Another disadvantage to their size is the fact that it cannot be hidden when Pfizer makes a mistake or one of their medications is under intense scrutiny. As such a large corporation, Pfizer is often under the microscope for various aspects of their business practices as are their products and services. Due to this, it is well publicized when their medications go wrong or one of their products is found to have adverse side effects.

There are many opportunities that are currently in sight of Pfizer, Inc. that will help ensure that they continue to be one of the largest pharmaceutical companies in the world. Pfizer can look forward to global growth and penetration through acquisitions and mergers. Pfizer has demonstrated a strong history in this aspect with powerful mergers in recent years. In 2009 Pfizer merged with fellow pharmaceutical company Wyeth helping to secure Pfizers position as the top pharmaceutical company in the world. Pfizer also has a huge opportunity in the global market with their initiatives to step up as a healthcare leader worldwide. Pfizer has created the Global Regenerative Medicine Unit which focuses on stem cells and how they can open doors for regenerative medicine. Pfizer also began a program titled Mobilize against Malaria which is designed to help address gaps in the treatment and education of Malaria. Also helping Pfizer on the global stage is a licensing agreement with two companies based in India. This agreement will help Pfizer provide the underserved populations of different nations with essential medications and treatments. One of the greatest opportunities that Pfizer currently has is in their agreements with other pharmaceutical companies to help boost its research. As an abundance of research is performed, new medications can hit the market which increases revenue for both Pfizer and the company they have an agreement with. As the worldwide population grows older, one of the opportunities that is before Pfizer is to continue to readily address the growing healthcare needs of the aging population. Continuing with their history of providing effective medications and treatments, Pfizer is looking at a potential gold mine of revenue and growth as people become more aware of their healthcare needs while Pfizer can provide the treatments.

The population is aging at a rate seldom seen in history. Due to this and other underlying factors, pharmaceutical business is booming. Although this is good for Pfizer, this is also good for Pfizers competitors. A major threat to Pfizer is competing companies such as GlaxoSmithKline and Merck. Although research and development is a huge part of Pfizer, it is also one of their threats. Research and development takes time and revenue which can be lost when a product is not successful. In this same vein, it is essential to Pfizer to make sure they secure their product patents in time to ensure other companies cannot capitalize on new products. A big threat to Pfizer is the upcoming or recent products that have expired patents. Lipitor is easily one of Pfizers most successful medications, yet with its expired patent it will no longer be the revenue powerhouse that it has been in past years. Generic medications are often cheaper yet viewed as the same caliber as their brand-name counterparts by most consumers. As medical and prescription costs rise, there is no doubt customers will turn to the cheaper generics that are offered. A major threat that Pfizer and all pharmaceutical companies face is when one of their already marketed products is deemed unsafe for consumption. For instance, Bextra was a common pain reliever that was withdrawn from the market in 2005 after it was learned of the adverse cardiac effects this medication may cause. This medication was produced by G. D. Searle & Company, which is now a part of Pfizer, Inc. When a medication is withdrawn from the market, the producing company may face scrutiny for years to come in forms of consumer litigation and federal fines. It can also be a combination of these two that Pfizer has to face due to a withdrawn medication.

An action plan for Pfizer, Inc. would be a straight-forward plan in which we capitalize on its strengths, pursue its opportunities, downplay their weaknesses, and eliminate their threats to the best of our ability. The continuation of Pfizers strengths would be a core goal in our action plan. The importance of creating new medications would remain at the top of our list of priorities. It would be essential to focus on treatments for common diseases and ailments in order to assure Pfizers continued placement as the largest pharmaceutical company in the world. It would also be important to continue to utilize the strengths of Pfizers marketing strategy and continuing on the same path that they are on now. As their marketing strategy seems to be very effective at this time, no immediate changes are needed. It would be essential for us to examine the research and development aspect of the corporation and make sure it is running as efficiently as possible. In doing so we would most likely increase our own investment in this department as well as continue outside solicitation of other corporations, much like Pfizer is already doing. Continuing the globalization efforts for Pfizer would be at the heart of our action plan. To remain a major pharmaceutical competitor for years to come, it is essential to grow Pfizer on a global stage. The Global Regenerative Medicine Unit is something that we would focus on as a way to keep up with new ideas and treatments. It will also be extremely important to take advantage of merger and acquisition opportunities as they present themselves to the company. This way we can focus on growing our own company while also eliminating some of the competition.