Pfizer, Inc., one of the world’s largest research-based pharmaceutical and biomedical companies, is dedicated to discovering, developing, manufacturing, and marketing prescription medications for humans and animals. Headquarters are in New York City. Pfizer was established in Brooklyn, New York, in 1849 as Charles Pfizer & Company by the German scientist and entrepreneur Charles Pfizer and his cousin Charles Erhart, a confectioner. The company, then a fine-chemicals business, was financed with a $2,500 loan from Pfizer’s father. (1). Pfizer works with professionals, governments, and local communities to improve healthcare access. Its medications and vaccinations benefit healthcare practitioners and patients by treating illnesses and improving health. (2).
SWOT Analysis of Pfizer
By analyzing Pfizer’s internal strategic strengths and weaknesses, we can better understand the company’s strengths and weaknesses overall. Because it conducts business all around the globe, the pharmaceutical company may take advantage by creating brand recognition and a global presence. As a result, it will help to sustain in the industry. Based on the companies and areas where Pfizer does business, employees have both opportunities and threats to consider. Therefore, Pfizer must develop innovative ideas and tactics to expand the business while also safeguarding it from the competition. Pfizer will not be able to develop or survive long-term if it does not address the issues raised in this Swot Analysis of the firm.
Related SWOT Analysis: Beximco Pharma | Square Pharma | Johnson & Johnson | Abbott Laboratories
Strengths of Pfizer
Market Leading Position: Pfizer is the world’s 49th biggest publicly traded corporation by market capitalization and the second-largest pharmaceutical firm by revenue in 2020, according to Forbes. The company generates annual revenues of roughly $50 billion. According to the most recent available data, it has a market valuation of $194 billion as of February 2021. (3).
Highly Successful Brand & Recognition: Pfizer is the producer and marketer of many well-known brands and products. Over the last 170 years, the company has gone from a one-stop-shop to an international business. Pfizer also offers a diverse product portfolio that includes numerous best-selling medications. (2).
Response to Pandemic: Pfizer’s efforts to develop and mass-produce a vaccine for the COVID-19 virus are unmatched. For the first time, a vaccination has been licensed, rolled out, and given to the public in such a short period. A pandemic reaction has also been the quickest in recent history. (3).
Research and Development (R & R&D) Sector: Pfizer invests over $8 billion per year in research and development, a significant sum in the pharmaceutical sector. Pharmaceutical development business that works in various sectors, with a particular emphasis on vaccines and medications. Immunology, oncology, cardiology, and neurology are some of the specialties available. (1).
Weakness of Pfizer
Drug Lawsuits: Thousands of lawsuits have been brought against Pfizer, mostly for medical damage caused by its popular drugs. It was the biggest healthcare fraud fine ever paid. The court fined Pfizer $2.3 billion in improper marketing claims. (6).
Supplying Issues of Vaccines: Pfizer failed to reach those targets to satisfy delivery quotas for the first doses of the coronavirus vaccine by the end of 2020. As a result, Congress has begun to probe the administration’s vaccine research and distribution plans. Moreover, they have pointed out that Pfizer benefitted from billions of dollars in public financing to mass-produce the vaccine right after it was approved. (4).
Lack of Investment in the R&D sector: The industry’s fastest-growing companies invest less in R&D. Despite spending more on R&D than the industry average, Pfizer has been unable to compete in terms of innovation. It seems to be a mature company eager to provide items with proven market characteristics. (6).
Poor Demand Forecasting & Marketing Strategy: Poor Demand forecasting results in more lost opportunities than rivals. Pfizer’s inability to estimate demand leads to greater inventory levels both internally and outside. In addition, the product promotion of Pfizer is seriously lacking. Its positioning and unique selling proposition are not well defined, leading to competitive threats in this area. (6).
Opportunities for Pfizer
Current Market Share: Pfizer now has the greatest market share of any firm in the prescription pharmaceuticals sector, which is predicted to expand at a Compound Annual Growth Rate (CAGR) of 6.9 percent through 2024 and to continue to grow indefinitely afterward. (3).
New Merger: The recent Pfizer acquisition that united its Upjohn subsidiary with Mylan M.V. resulted in a loss of diversity for the corporation. In the long term, this may lead to a more focused Pfizer. The separation of Upjohn’s business allows for faster growth in the pipeline of prospective medicine candidates. (5).
Focusing on Emerging Markets: Innovating consumer behaviors may open up new markets. It enables new revenue streams and product categories. (1). The market evolution will reduce competitors’ advantages enabling Pfizer to sustain. The company has recently invested considerably in online platforms. This investment gave Pfizer a new sales channel. (2).
Vaccine Development: Following the outbreak of COVID-19, Pfizer formed a partnership with BioNTech in April 2020 to produce a vaccine against the virus. The vaccine, BNT162b2, developed by the two businesses, was granted the world’s first temporary authorization in the United Kingdom in December 2020. The Food and Drug Administration (FDA) approved the license for the vaccine’s distribution in the United States a week later. (3).
Threats for Pfizer
Inconsistent Supply of Innovative Products: Even though the firm has produced various goods throughout the years, many of them have been developed in reaction to the growth of other competitors. Secondly, the supply of new items is not consistent, resulting in fluctuations in sales numbers that are both high and low over time. (4).
Intense Competition: In the previous two years, stable profitability has boosted industry competition, lowering profitability and total sales. Newer, better medications are creating enormous competition in the pharmaceutical industry. Several businesses are developing oral anti-inflammatory medications to compete with Pfizer, creating a big threat for a company like Pfizer. (5).
Government Regulations: Since liability rules fluctuate from country to country, Pfizer may be subject to various liability claims depending on the policy changes in those markets as the pharmaceutical sector is heavily regulated. (5).
Allergy and Complexity Issues: People who received the Pfizer and BioNTech COVID-19 vaccination had severe allergy-like symptoms and complexities such as fever, headache, tiredness, and different forms of sickness. Polyethylene glycol (PEG) is an ingredient in the vaccination (PEG). This is the first time it has ever been used in a vaccination that has received FDA approval. However, PEG has been detected in many medications that have caused anaphylaxis in the past. (2).
Recommendations
This SWOT Analysis tells us that brands like Pfizer should target rising markets by offering innovative products at a cheap rate or offering at a discount price. Moreover, the company must develop more inventive medications to compete with the numerous new and effective drugs being developed by other nations. In addition, the company must also resolve its legal challenges. As a result, it will lead to an increase in the company’s financial resources to sustain.
References
- https://www.britannica.com/topic/Pfizer-Inc
- https://www.reuters.com/companies/PFE
- https://www.pfizer.com/
- https://www.ryerson.ca/content/dam/accounting-finance/smif/research/FIN65-G4-Pfizer-Analysis.pdf
- https://www.fool.com/investing/value/2010/08/12/pfizer-strengths-weaknesses-opportunities-threats.aspx
- https://www.projects4mba.com/swot-analysis-of-pfizer/4977/
- Pfizer Drugwatch
- Pfizer Pharmawords
- Pfizer Wikipedia
- Company Reputation Ranking
