Growth Strategies in the Pharmaceutical Industry - Pfizer

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The next option is buying growth; acquisition is great when possible. This is a way for companies to buy their future pipeline, which would be great for Pfizer considering their current position. An advantage to buying growth is that is gives companies flexibility and diversity. The major downside to buying growth is that it is very expensive, and only certain big pharma companies can even afford to look into this option.

The third option for Pfizer is to chance their business model. Pfizer could look at expanding outside their normal realm of products and start a differentiation product that sets them apart from competitors. A big positive of this is that it could give Pfizer a leap ahead of competition since they are already a well-known brand, but it can be disheartening because it can affect employees well-being by having to open different departments while cut back in others. Changing the structure of how the business model works would mean changing the way finances are spent throughout the company.

Recommendations/Implementation

Based on the three strategies talked about previously, the best option here would be for Pfizer to buy/acquire growth. Earlier in the analysis, there were a few companies that were stated that Pfizer has acquired over the years. Even though it is timely and expensive to buy growth, some companies do this especially well (as Pfizer does). Pfizer’s Pipeline does not look promising for the next years to come, but other smaller companies have pipeline’s in which Pfizer could benefit from. Even though acquiring a new company can be pricey, Pfizer would: save money on Research and Development costs, save themselves from major lawsuits, benefit from specialty medicine and biotech, etc. By acquiring/buying growth, this also means that Pfizer would obtain whatever pharmaceuticals that the company being acquired currently owns, allowing them to build their product portfolio. For example, when Pfizer acquired Pharmacia, they added the medication Celebrex to their portfolio. With the success of acquiring companies in the past, Pfizer should focus solely on this. They currently have many medications that are well-known and have been being used for years. In order to keep their brand image strong and keep their customers happy, they should focus on other companies’ pipelines rather than their own.

References

Pfizer Inc. (n.d.). Retrieved October 28, 2016, from http://www.marketwatch.com/investing/stock/PFE/financials

Pfizer: Largest Drug Manufacturer's History, Products & Lawsuits. (n.d.). Retrieved October 28, 2016, from https://www.drugwatch.com/manufacturer/pfizer/

Pfizer | SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share. (n.d.). Retrieved October 28, 2016, from http://www.mbaskool.com/brandguide/pharmaceuticals-and-healthcare/2623-pfizer.html

https://cb.hbsp.harvard.edu/cbmp/content/54155061