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“You have to be careful about being too careful” ~ Beryl PfizerBY: Peter MorganID #: 2057061

Industry breakdown

Pfizer

GlaxoSmithKline

Sanofi-Aventis

Novarts

Others

~ $1 Trillion Industry made up of

of the big 12 pharmaceuticals

High cost of drugs $1.5 Billion

Time consuming

Increasingly shorter patents

Competitive market Similar drug developed Drive cost of marketing also cost cut strategy Others have diversified their portfolio to remain competitive

Industry Background

Oldest pharmaceutical company out of the 12 big corporate giants

Mamas work force 35,000 sales representatives make average of $621,032 15,000 scientists and R&D personals. R&D and manufacturing facilities on almost every content

Diverse products and services Pharmaceuticals such as Vigra, Lipitor and the up and coming Eliquis

(apixaban) Health care products such as Advil, Centromere and chap stick Health care insurance (small and local). World leading in veterinary medicine

Pfizer

Second biggest market capital of $190 Billion

Strong and transparent media and social media presences Continues updated media release on their website Facebook presence Twitter Youtube TV presence Total of 2 million followers

Strong government relationship

Pfizer

Market Segmentation

Asia-Pacific Europe

Americans

12 major pharmaceuticals world wide including Pfizer.

Either European or American based

Stronger internet presence

Diversification of product

and services

The Competition

Block buster drugs are less desirable

Budget and personal cuts R&D budgets cut by up 3 billion dollars per year Reduction in sales representatives

Pfizer by 3000 GlaxoSMithKline 4000

Patent expiry generic drugs 42% of drugs off patent by 2013

End of an Era

Competitors with similar drugs

Small market space

Product orientated (Pharmaceuticals and health care products).

Have segmented the market but not yet implemented any market or corporate strategies

Lack of diversification

The problem

Move into preventative medicine

Compete and or collaborate in production of medical instrument

Use their resources to remain market orientated

Anticipate competitors next move

Medical instrument

Goloblise Health Care insurance

Use their strong brand value

Maintain customer relationship

Use their media and social media presence

Show the end users that they care not only about how they are treated by what they eat (Preventative measures).

Health insurance

Orphan Drugs

To treat a minority group 200,000 people

Highly risky, but not many companies want to venture there

High return Anti lung caner drug at $115,210 per patient per

year

Opportunity for diversification of product and services

Currently a Niche market

Not too many competitors

Potential to expand

High profit margins

GM Food

World wide shortage of food by 2030

Less regulation surrounding it

Can rely on trade secrets than patents

Faster turn over of product, BUT

Not widely understood

Organic produce are still very popular

GM Food

References

Johnson and Johnson 2012, Johnson and Johnson medical products and technologies, accessed on October 20th, http://www.jnj.com/connect/healthcare-products/medical-technologies/

Johnson, N 2012, 'Branded Pharmaceuticals Major Manufactures', Henry Fund Research, The University of IOWA, School of Management.

Johnson Rockoff 2011, The Wall Street Journal, Pfizer's FutureL A Niche Blockbuster, accessed on October 27th http://online.wsj.com/article/SB10001424053111903352704576538683370950462.html

Herper, M 2012, Forbes Magazine, The best drug Companies of The Past 15 Years, accessed on October 1st http://www.forbes.com/sites/matthewherper/2012/02/09/the-best-drug-companies-of-the-past-15-years/

Herper, M 2012, New York Times, Pfizer Inc., accessed on September 20th http://topics.nytimes.com/top/news/business/companies/pfizer_inc/index.html

Herper, M 2012, Forbes Magazine, Experimental drug business, accessed on http://www.forbes.com/2006/11/27/pfizer-experimental-drugs-biz-cz_mh_1127pfizer.html

Market Watch 2012, Pfizer Inc., accessed on October 26th http://www.marketwatch.com/investing/stock/pfe

Pfizer Inc. 2012, Pfizer History 1849-1899, accessed on August 18th http://www.pfizer.com/about/history/1849_1899.jsp

Pfizer Inc. 2012, Pfizer History 1900 to 1950, accessed on August 18th http://www.pfizer.com/about/history/1900_1950.jsp

Pfizer inc 2012, Pfizer History 1900 to 1950, accessed on August 27th http://www.pfizer.com/about/history/1900_1950.jsp

Pfizer inc 2012, Pfizer History 1951 to 1999, accessed on August 27th http://www.pfizer.com/about/history/1951_1999.jsp

Pfizer inc 2012, Pfizer about Australia, accessed on August 18th <http://www.pfizer.com.au/sites/au/about_pfizer_Australia/Pages/OurHistory.aspx>

References

Pfizer inc 2012, Pfizer History 2000 to present, accessed on September 3rd http://www.pfizer.com/about/history/2000_present.jsp

Pfizer inc 2012, Pfizer about, accessed on August 18th http://www.pfizer.com/about/

Pfizer 2012, Pfizer social media, accessed on October 12th http://www.pfizer.com/news/social_media/social_media.jsp

Standard & Poor’s, 2011, 'Industry Survey; Healthcare: Pharmaceuticals’.

Pfizer Inc. 2012, Pfizer product pipeline, accessed on August 18th, http://www.pfizer.com/research/product_pipeline/product_pipeline.jsp

Pfizer Inc. 2012, 'Pfizer Reports Fourth-Quarter and Full-Year 2011 Results; Updates 2012 Financial Guidance', accessed on October 1st.

The Official board 2012, Pfizer's Corporate structure, accessed on September 29th, http://www.theofficialboard.com/org-chart/Pfizer

Roger Bate 2008, The American, Bad Medicine, accessed on October 26th http://www.american.com/archive/2008/may-june-magazine-contents/bad-medicine

Yahoo Finance 2012, Pfizer Inc., viewed on October 26th <http://au.finance.yahoo.com/q/ks?s=PFE>

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