Toll free:


Corporate Strategy


Pfizer inc. is a pharmaceutical company which has experience growth in the recent past. The pharmaceutical industry saw a favorable growth in the year 2008 that is likely to continue through 2010 unlike other sectors. Most of the leading U.S. companies reported favorable earnings and this offers a favorable financial outlook Pfizer Inc for the company. in view of this positive outlook it is  recommended to any investor ‘Hold’ the Pfizer inc  share in view of its strong acceleration in earnings momentum, fair valuation, and positive price momentum while company's earnings have increased from $1.18 to an estimated $1.19  between 2007 and 2008 even this period was affected by the global financial crisis. This shows the company is experiencing growth and it will be faster when the economy recovers. Over thirty years of research have shown that the major catalyst of price performance is the change in the growth of earnings per share. This action taken have had short term profits improve and in the end. This has made them one of the greatest boosting their profits.

Forecasts of the earnings of the company shows little change in earnings to the worse. This means that they will have a good profitability. Relative to changes in earnings forecasts for other companies, company is about average. In addition, the company has reported earnings that were higher than those predicted in earlier estimates which may be a positive for future earnings growth. Changes in analysts' estimates and actual reported earnings compared to forecasted estimates provide additional insight into earnings momentum.

The management of the company is optimistic that the future is bright especially in years 2009 and 2010 in terms of growth rates in sales and profitability of their operation. This disregards the facts that there is a continued pricing pressure due increased competition worldwide. Thus, for 2010, company estimates diluted net earnings per share of $1.5, representing a 26.0% increase over 2008, with a constant currency net sales increase due to growth in shipments at its plants. Meanwhile, company expects completion of the development and initial commercialization of various plants in the third world.

Business objectives and goals

 The major objectives of the firm are;

 To increase sales by 30%- 40% in the future

To be to serve the e market with efficiency

The business shall buy more shares from its profits to be in a position of raising more capital.

 The business shall be offering permanent employment to the community after becoming stable.

Corporate strategy

The company employee’s three level channels of distribution by offering the products to distributors creating two middlemen before they reaches the market. The aim of this strategy is to ensure that the product reaches the market where we cannot reach.

The company will produce the medicines in large quantities at the same time hire the best human resource for the purpose s of benefiting from synergies from economic of scale as well as employment of efficient of human resource. These will the company the competitive advantage in the industry. The company will also use modern information technology in production which will give the company an advantage in production of goods. Pharmaceuticals industry is one f the industry that require technological techniques therefore the company will take advantage of diversified technology in production. The company shall also vertically integrate her operations by owning some of the distribution centre’s to reduce the cost of distribution. We shall also enter into strategy alliance with suppliers of raw materials as part of integration.

Business strategy

The company employs various business strategies in order for us to succeed in the market. Among the business strategies we shall employee include;

(i)cost leadership:- a the beginning we  shall offer drugs at price lower than the competitors but above contribution margin. This will aim at first acquiring the market then our prices will be adjusted into a profitable price. This strategy will not only help us acquire the market but will also help reduce number of new entrants to the market by imitating medicine. This strategy will be possible since we have enough capital that will sustain the business for one year as we market drugs. We also have good expertise in accounting and marketing, this will ensure that we do not charge the price lower than the contribution margin and marketing strategies will handled with care.

(ii)Differentiation strategy: - Drugs shall be unique because it covers various topics relating to marketing but targeting all age groups. This will be definitely medicine with a difference in the market from the competitors are offering.  Because of it uniqueness customers will buy whether change the price upwards. If the suppliers of Pharmaceuticals and unions demand for pay rise for unionisable employees it will be easy for us to pass some this to the customers without loosing the market share. It will be easy for competitors to come up with medicine of this kind because we shall pay our employees well therefore they will not lick out our secrets.

(ii)Focus strategy: - although our products has features for all age groups but most we shall focus on the market. This group will be largest consumers of the medicine and account for almost 80% of sales. This group will be very loyal to us because our medicine will touch topics of their interest. We shall be able to have loyalty from this group because of cost leadership and the differentiation strategy adopted by this company. Our research indicates that most of available medicine does not specifically target this group and this will give us a competitive advantage

The company investment opportunities

Pharmaceutical industry is likely to face challenges in the coming years, and these challenges could be no less daunting for Pfizer inc. Health-care systems around the world are experiencing growing cost-pressures due to aging populations, and more patients who demand better health care facilities. However, along with the challenges, there are also tremendous opportunities. The reduction in price is not an issue because a patient doesn’t want to save a couple thousand dollars and then learn that their drugs are not working and have paid a higher price for a premium product knowing that it could work.

Since late 1980s, the company set a goal of growth in sales that now stands at 48.296 billion dollars, and it has scrupulously maintained the growth momentum. According to management the goal has been challenging since the beginning but he did not ever feel it was unattainable. It is the philosophy of grow and divide that explains the continuous growth attainment of the company.

According to management, there is a sound reason behind company’s acquisitions and growth. The focus of the company has been to come up with enough ideas from within without having to go outside. At the same time, they never reject an idea without ever examining it. The company believes in organic growth policy.

Critics have accused companies of spending too less on R&D. While Pfizer Inc enhanced its R&D expenditure. The company doesn’t specify the dollars needed to spend on the R&D, even as the division heads are instructed to spend enough so as to deliver enough products to generate profit growth.

The company has gone from strength to strength to grow ever bigger, stronger and more profitable over years. Today, the company is perched on a high growth trajectory winning the confidence of its investors.  The company is among the top ten players in the industry riding high on its philosophy of helping and connecting to millions of customers the company has worldwide. The other strong point of the company is coming out with solutions to medical challenges in the form of marketable innovations.

Apart from the U.S market the company has made a significant presence in the global markets like Japan and Pacific. The company has partnered with or acquired the other companies to come out with better and state of the art products in the frontier areas. The company is looking forward to breakthrough in biotech solution to bone problems and will most possibly corner the benefits accruing to the early bird. Pfizer Inc is also slowly and gradually reaching out globally, and is hopeful of its recent foray in the Indian market.

There are however certain cautions that must be addressed before the company can ride with pride on its past laurels and future performance. On the positive side, the company has the fortune of a strong leadership that successfully sailed the company through rough waters in the past and remained optimistic, and met the goals and challenges and delivered to the investors and customers alike.

2. Competitive Analysis

The company will be operating in an environment with stiff competition from revival companies who offer similar services this is because no single company in the world today is operating without competitors.  In such situation it is a monopoly which is left to government owned institutions.

Competitors offer challenges to business and ensure there is fair prices in the market for the benefit of the customers.  In our case there will be many competitors.  We are planning to offer rival companies a challenge on capture there market driving some of them out of business.  However the company has come up with structures that will enable them remain in business, this will include product differentiation and cost reduction strategies.  We shall also use focusing strategies.  We shall engage ourselves in various strategies to help us deal with our competitors.  This will include diversification, outsourcing, and differentiation.  We shall analyze possible competitor’s steps to ensure we remain competitive in the market.  The possible steps that are likely to be taken by our competitors include possible product diversification, expanding product to various parts of the town, reducing costs due to outsourcing, investment in digital equipment and expanding product base.

Value chain analysis

Pharmaceutical company will adopt a value chain that will result into the maximization of value while maintaining the costs to their minimal levels. Activities where value will be created and costs reduced include procurement of raw materials, Human Resource Management and Technology development. Other areas include Research & Development, Sales, and Marketing.

In procurement, Pharmaceutical company management will ensure that the raw materials and other supplies are close to their proximity to reduce transportation costs. Production of drugs will be on high technology while ensuring that their products cannot suffer from poor quality. We have incurred a significant cost in research and development but this cost will be covered by the value generated.

Value is also added when it comes to outbound logistics. To reduce the distribution costs of drugs and other products, the company distributes them in large quantities distributors using vans and opening Pharmaceutical Company in various towns to reduce the number of the distribution channels. Recruitment and hiring of staff will be done online to reduce costs. The benefits/value of the exercise is enhanced by recruiting and hiring staff of high integrity, professionalism and expertise. 

Core competencies

Target market: - The product will be unique and will target market, people who are planning to have families and many members of the society. This target group will form a large portion of the target market share. The Pharmaceuticals will be the best to this group.

Positioning the Pharmaceutical company is the most superior, best and most reliable drugs dealing with the issues and contains high quality and day-to-day color development that will be added to enable customer satisfaction.

Distribution: - the Pharmaceutical Company was manufactured in various towns to reduce the cost of distribution and to reach a wide market at a minimal cost.

Service: - Quick and available services.


They have collected enough resources that will ensure that this company becomes a success. The proprietor is a trained business administrator with marketing techniques and will include a staff team that will deliver the services. While the financial resources that will push this company to the next level are available and the first years transactions have been budgeted.

Buy custom Corporate Strategy essay

← Comparative Analysis PepsiCo, Inc. VS Coca-Cola Company →
Search essay
On your first order you will receive 10% discount
Order now PRICES from $11.99/page ×