A good example of how the government and political environment influence and dictate the direction of the pharmaceutical industry is through various regulations by the FDA and Department of Health and Human Services DHHSinvolving patent protection, product approvals, pricing controls, and product liability.
In the biotechnology and pharmaceuticals industry within the health care sector, Pfizer PFE is the leader. However, all the pharmaceutical companies have distributor agreements that help curb the bargaining from being overzealous. Bristol-Myers Squibb Like most other major pharmaceutical companies, Bristol-Myers Squibb derives the bulk of its revenue from a limited number of drugs, typically either expensive specialty medications or cheaper products that are widely used.
As such, buyers do have above average bargaining power that allows the wholesale distributors to dictate the price of the products.
The demographic evolvement in the world is another factor that should be considered. Recent technological developments and breakthroughs have changed the way new drugs are discovered, how they are tested, the precision that it affects the diseases, and how the drugs are being delivered or distributed to patients.
However, due to such intense rivalry, numerous companies have started to merge like Sanofi-Aventisor form alliances or joint-ventures in creating new products, to compete with other competitors.
Among its best-selling drugs are prescription treatments for cancer, multiple sclerosis and macular degeneration. In the pipeline are oncology products that, if approved, would directly compete with Pfizer pharmaceuticals.
The rivalry among the current competitors in this industry is intense due to the competitive nature of product development and patent profitability.
The effect of alternative medicine is limited however to the critical and chronic degree of the diseases and illnesses that could be treated or prevented.
Potential benefits to the process are found in the high level of profits if successful. Search Pfizer Industry Analysis The pharmaceutical industry seems to be an intermingling of growth and expansion stage.
Threat of Potential Entry The threat of potential entry for this industry at this stage growth and expansion is definitely low.
With the globalization of economy, the market of available suppliers is even bigger than it used to be — resulting in even lower concentration of suppliers and giving the pharmaceutical industry more power in bargaining for the prices of drug ingredients.
At the same time, various players in this industry have started to acquire or merge with their respective competitors, in order to expand and diversify product line, market share, or new markets.
Pfizer researches, develops, manufactures and then markets its pharmaceuticals, which include both prescription products and over-the-counter products, such as Advil and Robitussin. Other than that, there are also legal and regulatory obstacles that prevent new competitors, from the FDA and other governmental structures.
Pfizer products include both animal health products, such as vaccines, and human medicines. The concentration of buyers are high due to the fact that there are only a select few key buyers that make huge purchases from all the players in the pharmaceutical industry.
Failure comes in the form of investment losses of time and money. Several large drug manufacturers exist within the market, though their status as major competitors lies primarily within specific drug markets.
Due to the scarcity of patents and large amount of capital required for the numerous years of research and development, it is close to impossible for new smaller companies to enter this industry at this time. This industry is a non-cyclical industry, as the products, drugs and medication, are geared towards consumers and markets that are not prone to price changes, inflation, or economy fluctuations.
Other Influencing Forces Due to the nature of the drug products, there is intensive regulatory and legal implication that affects this industry. Bargaining Power of Suppliers Suppliers to the pharmaceutical industry players are in abundance.
Consumers in the market might lean towards product lines in the lower end of the affordability spectrum, rather than higher end — purchasing generic products in the market. Though several of its top 10 revenue-producing products are considered specialty drugs since they cater to illnesses that are not widespread, at least one of its drugs directly competes with Pfizer.
The recent development in stem cell research will definitely create more opportunity for growth in the pharmaceutical industry, especially in the European Union a Related posts: Pfizer The major drug manufacturing company Pfizer, founded inis based in New York but operates globally.Pfizer Analysis Essay Words | 6 Pages PFIZER ANALYSIS INTRODUCTION Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world.
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SWOT Analysis of Pfizer Strengths. R&D innovation has a broad precious coverage. Some competitors has faster research to market turn around time than Pfizer giving the competition head start in. Corporate Financial Analysis Of Pfizer Finance Essay.
Print Reference this. Published: 23rd March, Analysis of Pfizer's financial statements Balance Sheet Analysis. the larger the change of billsimas.com stock of Pfizer and its competitors, Roche and Eli Lily and Company, all can be regarded as low risk stocks.
3. Summary. Pfizer, relative to its competitors, has distinct competitive advantages. Being in the market for more than one and a half century, Pfizer had already established its 5/5(16). Who are Pfizer's (PFE) main competitors?
By Investopedia. Racing to the market in fierce competition are Pfizer, Merck, Novartis, Bristol-Myers and Johnson & Johnson. Stock Analysis; Stock.
Pfizer Industry Analysis The pharmaceutical industry seems to be an intermingling of growth and expansion stage. This is mainly due to the fact that there are so much research and development (R&D) work being conducted in the .Download