Pfizer Company: A Presentation of Strategic Context and Company Strategies
Pfizer is the number two largest biomedical and pharmaceutical research and development company in the world, boasting in excess of fifty Billion dollars per year in gross revenues. While the recession has hit many companies, the biotechnology and pharmaceuticals sector has remained not only relatively insulated, but in addition to that the forecasting models for growth predict a profitable future. Pfizer has had its share of growing pains, a cause for reduction in gross revenues comes primarily from a growth strategy to acquire another large biopharmaceutical company, yet net retained earnings have continued to increase at a rate of six percent annual average each year over the last three years. After Pfizer’s acquisitions of Wyeth they saw a substantial increase in operating profit margins due to increased efficiencies between the two companies.
Pfizer has recently acquired a biopharmaceutical company named Wyeth. By purchasing Wyeth which specializes in vaccines, Pfizer has broadened their customer base by expanding their product line. This business practice aligns with Pfizer’s current pro-growth Strategy. It is clear, in most part; Pfizer’s business Strategy aligns with the wild wild west model of Industry Ecosystems. Pfizer if a relatively fast growing company, in an industry that thrives on making fast and furious technological discoveries, and they have a very high rate of customer retention due to patent protection. Pfizer has many competing technologies in the market place for such diseases as cardiac health, mental health, and infectious disease treatments. Their drug Lipitor is by far the highest grossing drug the company currently has on the market. Cardiac disease is the most common and fatal disease that Americans face. Lipitor functions by lowering low density lipids (or fats) in the blood stream thus promoting cardiac and circulatory efficiency and health. Pfizer’s...
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