Case Study of Pfizer 2009

1. Group 2 (Hazel Guevarra & Hazel
Magonles)
MBA BATCH 4
PHILIPPINE CHRISTIAN UNIVERSITY
SUBJECT : STRAMA 2
INSTRUCTOR : DR. ELIZEBER O.
MURALLOS

2. Agenda
D. Internal Factor Evaluation Matrix (IFE)
E. Competitive Profile Matrix (CPM)
F. Assumptions On The Analysis
PROBLEM STATEMENT:
A. General Statement of the Problem:
A.1 Support evidence of the problem
A.2 Time Context
A.3 View Point

3. Internal Factor
Evaluation Matrix
(IFE)
The Internal Factor Evaluation
(IFE) Matrix assesses the strengths
and weaknesses of a company
based on its internal factors. Each
factor is assigned a weight
indicating its relative importance,
and a rating indicating the
company's performance on that
factor. The weighted scores are
then summed up to determine an
overall score. Here's an IFE Matrix
tailored for Pfizer:
Group
1

4. D. Internal Factor Evaluation Matrix (IFE)
Evaluate the Internal Environment using the IFE. A Total Weighted Scoreof 2.5 and above means
favorable strength for the company. Otherwise, weakness outweighs strength.
WEIGHT RATING WEIGHTED
SCORE
Rating Values
STRENGTH:
1 - Major weakness
2 - Minor weakness
3 - Minor strength
4 - Major strength
WEAKNESS:
>2.5 - Strong
2.5 - Average
<1.0 - Weak
TOTAL WEIGHTED SCORE: 1.0
OVERALL RATING:
CONCLUSION:
2. Strong Cash Flow and Financial Stability
3. R& D Strong innovative
pharmaceuticalproducts.
1. Strong Brand Recognition
4. Experienced leadership team
0.15
0.15
0.15
0.13
4
4
3
3
1. Generic Competition
2. Potential Impact of Currency Fluctuations
3. Failure in clinical trials.
0.11
0.10
0.11
4. Reliance on traditional marketing strategies
2
2
3
0.6
0.45
0.6
0.39
0.22
0.2
0.33
0.10 2 0.2
2.99

5. Conclusion: The Internal Factor Evaluation (IFE) Matrix highlights Pfizer's significant strengths in
global market presence, brand recognition, and research and development capabilities.
However, the company faces challenges such as patent expirations, generic competition, and
regulatory hurdles. Addressing these weaknesses while leveraging strengths can enhance Pfizer's
overall competitiveness and sustainability in the pharmaceutical industry.
Overall Rating: Based on the IFE Matrix, Pfizer receives an overall rating of 2.99 out of 4,
indicating a moderately strong internal position with room for improvement in certain areas.

6. 3.57
E. Competitive Profile Matrix (CPM)
Providetablecomparisonandscoresamongmajorcompetitors.
CriticalSuccess
Factors
Weight
COMPANY
Pfizer Mercks&Co Novartis Bayer AG
Rating Score Rating Score Rating Score Rating Score
Capitalization
Brandreputation
MarketShare
Advertising
Employees
Profitability
Financialposition
T
otal 1.0
Conclusion:
0.15
0.14
0.14
0.14
0.15
0.14
0.14
4
4
3
4
3
4
4
0.6
0.56
0.42
0.56
0.56
0.43
0.6
3.73
3
3
4
3
3
3
3
3
4
3
4
3
3
3
3
3
3
3
3
3
3
0.45
0.42
0.56
0.42
0.56
0.6
0.56
0.45
0.56
0.42
0.56
0.42
0.45
0.45
3.21
0.45
0.42
0.42
0.42
0.42
0.45
0.42
3

7. Conclusion:
According to the Competitive Profile Matrix:
 Pfizer leads in capitalization, brand reputation, and profitability among the four companies.
 Merck & Co scores high in market share but lags slightly behind Pfizer in other factors.
 Novartis holds a strong position in brand reputation and advertising, trailing Pfizer by a small
margin.
 Bayer AG ranks lower across most factors compared to Pfizer, Merck & Co, and Novartis. Overall,
Pfizer emerges as the strongest competitor, closely followed by Merck & Co and Novartis. However,
all companies have areas where they can improve to enhance their competitive positions in the
pharmaceutical industry.

8. Everything is
Perfect but
there's is a
lot room for
improvement
Shunryu Suzuki

9. Assumption
of the
Analysis
General Environment Stability:
 The analysis assumes a stable global economic environment
without major disruptions such as economic downturns,
political instability, or natural disasters that could
significantly impact Pfizer and its industry peers.
 It assumes consistent regulatory frameworks governing the
pharmaceutical industry without unforeseen changes that
could disrupt Pfizer's operations or market dynamics.
 The analysis considers stable currency exchange rates and
interest rates, minimizing financial volatility in Pfizer's
operating regions.

10. Industry Growth
Prospects
 It is assumed that the pharmaceutical industry will
experience steady growth, driven by factors such as
increasing healthcare expenditure, demographic shifts,
and ongoing demand for innovative healthcare
solutions.
 The analysis accounts for potential challenges such as
patent expirations, generic competition, and regulatory
hurdles, but overall projects a positive outlook for
industry growth.
 It assumes that Pfizer will leverage its research and
development capabilities to capitalize on emerging
market opportunities and address unmet medical
needs, contributing to sustained revenue growth.

11. Financial Strength
and Competitive
Position

12. Financial
Strength and
Competitive
Position
1. The analysis assumes Pfizer's
financial strength based on
historical performance indicators,
including revenue growth,
profitability, and cash flow
generation.
3 Competitive positioning is assessed
relative to key competitors such as
Merck & Co., Novartis, and Bayer AG,
considering factors such as market
share, product innovation, and
customer loyalty.
2. It acknowledges Pfizer's leading position in the
pharmaceutical industry, supported by its diverse
product portfolio, global market presence, and strong
brand reputation.

13. Relevant Ratios
• Financial ratios utilized in the analysis
are assumed to accurately reflect Pfizer's
financial health and performance relative to
industry benchmarks.
• Ratios such as profitability (e.g., net
profit margin), liquidity (e.g., current ratio),
solvency (e.g., debt-to-equity ratio), and
efficiency (e.g., inventory turnover) are
considered relevant for assessing Pfizer's
operational efficiency and financial stability.
• It is assumed that trends observed in
these ratios provide meaningful insights into
Pfizer's strategic position and potential areas for
improvement.

14. PROBLEM STATEMENT
14
Pfizer, a renowned pharmaceutical company, faces a
myriad of challenges encompassing patent
expirations, legal complexities, shifting market
dynamics, and the need to align corporate
responsibility initiatives with business goals. These
challenges threaten Pfizer's market dominance,
financial performance, and reputation, necessitating
strategic interventions to sustain growth and
mitigate risks.
IV. ALTERNATIVE COURSES OFACTIONS
A. TOWS / SWOT Matrix
STRENGTHS WEAKNESSES
1. Strong Profit Generation
2. Strong Brand Recognition
3. R&D Strong innovative
pharmaceutical
4.Experience Leadership
1. Low Earning Per
Share
2. Reliance on traditional
marketing
3. Failure in Clinical Trials
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1. Strategic Partnership/Wyeth
Acquisition
2. Increased in demand for products
3. Advance in Biotechnology
THREATS ST STRATEGIES WT STRATEGIES
1. Patent Litigation and
Expiration
2. Supply Chain Disruption
3. Legal Issues
1. Global Market Presence
2. Research & Development
Capabilities
3. Brand Ignition
4. Diversification
1. Research &
Development
Investment
2. Strategic Partnership
3. Market Expansion
1.Product Portfolio
Diversity
2. Financial Resources
3. Global Reach
1. Patent Expirations
2. Generic
Competition
3. Regulatory
Challenges

15. REFERENCES:
STRENGT
H
2.Strong brand recognition
1. Strong Profit Generation Exhibit 5)
3 and 4. R & D Strong Innovative Pharmaceutical
products and Experience Leadership:
Leverage Pfizer's well-established brand reputation to
enhance market penetration and customer trust in new and
existing markets.

16. Weaknesses
1. Low Earning per Share/
In 2009, Pfizer faced weaknesses
related to its earnings per share (EPS)
performance, which could have
impacted investor confidence and
overall financial health.
3. Failure of Clinical Trials: Clinical trial failures posed
significant challenges for Pfizer, leading to setbacks in the
development of new pharmaceutical products and
potential loss of investment. Failures in late-stage clinical
trials could result in the discontinuation of promising drug
candidates, regulatory setbacks, and reputational
damage.
2. Reliance on Traditional Marketing:
Pfizer's marketing strategies relied heavily on
traditional approaches such as direct-to-
physician marketing and mass advertising.

17. Opportunities:
1. Wyeth Acquisition 2. Increased in demand for products
Higher demand can translate into increased revenues for
Pfizer, particularly if the company can effectively
capitalize on market opportunities and meet the needs
of patients and healthcare providers.
3.Advancement in Biotechnology Integrating digital
health technologies such as wearables, remote monitoring
devices, and data analytics into Pfizer's biotechnological
advancements can enhance disease management,
treatment optimization, and patient engagement.

18. 1.Patent Litigation and Expiration: Patent litigation
posed a significant threat to Pfizer's intellectual property
rights and revenue streams. 3.Legal Issues: The company has been involved in various
legal disputes and
settlements, including the recent record settlement
related to off-label drug promotion, posing financial risks
and damaging its reputation.
THREATS:

19. General
Statement of the
Problem:
Pfizer, a renowned pharmaceutical company, faces a myriad
of challenges encompassing patent expirations, legal
complexities, shifting market dynamics, and the need to
align corporate responsibility initiatives with business goals.
These challenges threaten Pfizer's market dominance,
financial performance, and reputation, necessitating
strategic interventions to sustain growth and mitigate risks.

20. SUPPORTIN
G EVIDENCE
OF THE
PROBLEM
1. Patent Expirations: Key products such as Lipitor and
Viagra are approaching patent expiration, exposing
Pfizer to increased competition from generic
alternatives. This jeopardizes Pfizer's revenue streams
and market share in critical therapeutic areas.
2. Legal Complexities: Recent settlements related to off-
label drug promotion and ongoing litigation pose
financial liabilities and tarnish Pfizer's reputation.
Regulatory approvals for strategic initiatives, like the
Wyeth acquisition, introduce uncertainty and potential
delays.
3. Market Dynamics: Evolving healthcare policies, pricing
pressures, and changing consumer preferences
challenge Pfizer's business model and profitability.
Declining sales forces and intensified competition
necessitate adaptive strategies to maintain
competitiveness.
4. Corporate Responsibility Alignment: While Pfizer's
corporate responsibility initiatives are commendable,
there's a need to integrate them more effectively with
business objectives. Aligning these efforts can enhance
Pfizer's brand reputation and resilience to economic
downturns.

21. Time
Context:
21
The challenges faced by Pfizer are evident in the current
pharmaceutical landscape, with patent expirations, legal
disputes, and evolving market dynamics impacting the
company's operations and strategic decisions. The urgency
to address these issues is underscored by Pfizer's ongoing
efforts to navigate regulatory hurdles, sustain revenue
growth, and enhance its corporate image amidst industry
disruptions.
The viewpoint is from the perspective of
Pfizer's senior management, responsible
for overseeing the company's strategic
direction, operations, and stakeholder
relations. This viewpoint encompasses
an understanding of Pfizer's internal
capabilities, external challenges, and the
imperative to devise proactive strategies
to address the identified issues and
ensure long-term success in the
pharmaceutical industry.
View
Point

22. Thank you