Merck Inc - Shareholders Report

Topics: Management, Stock market, Strategic management Pages: 2 (669 words) Published: October 18, 2014
Strategic Management.

Shareholders Report.

Merck Co Inc.

Merck Co Inc. (hereinafter referred as “Merck”) is US pharmaceutical company which have had created, manufactured and made various distribution models of drugs avalaible. One of the german Mercks' chemists Anton Kollisch was the first to synthesize 3,4 metilendioxide-N-methamphetamin (also known as MDMA. Merck was the first company to get the patent to MDMA numbered 274 350 in 1914. Firstly, the competitive advantages that Merck possesses is economies of scale and the extremely high level of efficiency of capabilities of manufacturing. High quality analyzing of past market trends and forecasting future market trends are the corporate skills that differentiates Merck from its main market competitors, which are: Phizer Inc., GlaxoSmithKline pls and Novartis AG. It is necessary to add that corporate policy realized by Merck brings to a high level of client satisfaction rate by supplying high-quality products all over the world.

Merck does its best to develop a strategy of penetration to the to Middle-East, Africa, Latin America and Pacific-Asia region. Permanent keeping our technology, research and developing of new products up-to-date is the key factor bringing us to the position of market challenger with notable market share. Numbers for September 2012 were the following: Merck reached the level of $125 billon in market capitalization and return equity of 11%.

In order to keep our market challenger place on the market Merck developed and applied three managing strategies cost advantage, innovation and corporate governance policy.

First of all, cost advantage policy brought us to the aboventioned position of market challenfer and does its best during penetreating to new markets as Merck increases its sales and profit level reducing the price of its products. This strategy brought Merck to success during entering markes in Asian, particularly in China. Furthermore, developing a...
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