DECEMBER 17, 2023

individual essay
Advanced Strategic Management

[student id]
word count: 985
FACULTY OF BUSINESS AND LAW
 Strategic Audit of Pfizer Inc. &
Recommendations for Strategic Improvement

Introduction
Pfizer Inc., a long-standing pharmaceutical company with a history of 174 years,
exemplifies innovation and commitment to patient well-being in the healthcare
industry (Pfizer, 2022). Pfizer, a well-known multinational company, has achieved
notable progress in various parts of the world. One of its major accomplishments is
the creation of PAXLOVID®, an innovative oral remedy for COVID-19. This highlights
Pfizer's crucial contribution to addressing worldwide health crises (Pfizer, 2022). The
purpose of this strategic audit is to thoroughly evaluate Pfizer's strategies and its
competitive position in the pharmaceutical industry. The objective is to thoroughly
assess the company's existing strategic approach, pinpointing strengths and
opportunities for improvement, in order to guarantee its continued dominance and
influence in the ever-changing global healthcare industry.

Company Overview
Pfizer, established in 1849, has transformed over its 174-year existence to emerge
as a prominent figure in the pharmaceutical sector, renowned for its dedication to
pioneering advancements and the well-being of patients (Pfizer, 2022). Pfizer has
recently reached a noteworthy achievement by exceeding $100 billion in revenues
for the first time. This accomplishment highlights Pfizer's robust financial
performance and its substantial influence on the global healthcare sector (Pfizer,
2022). This achievement is evidence of the company's long-lasting heritage and its
capacity to adjust and prosper in a swiftly evolving industry.

Strategic Audit
Market Analysis
According to a SWOT analysis of Pfizer, the company's strengths include robust
research and development, a diverse product portfolio, and a presence in markets all
over the world. According to Kotler and Keller (2016), opportunities are abundant in
developing markets as well as discoveries in the field of biotechnology. Some of the

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potential dangers include stringent regulatory environments and intense competition,
while some of the weaknesses include a dependence on blockbuster drugs and
patent cliffs. With the help of this analysis, a strategic overview of Pfizer's market
position is provided, with an emphasis on the company's capacity to capitalise on its
strengths and opportunities while simultaneously mitigating its weaknesses and
threats.

Table 1 SWOT Table

Strengths Weaknesses
i. Robust R&D capabilities
i. Reliance on specific key products
ii. Strong global brand presence
ii. Challenges with patent expirations
iii. Diverse product portfolio
Opportunities Threats
i. Expansion in emerging markets
i. Intense industry competition
ii. Advancements in healthcare
ii. Regulatory challenges
technology

Competitive Positioning
The analysis of Pfizer using Porter's Five Forces reveals that there is a significant
amount of competition in the pharmaceutical industry, that buyers have a substantial
amount of bargaining power, particularly large healthcare providers, and that generic
substitutes pose a significant threat (Porter, 2008). Regulatory and research and
development costs are high, which makes it difficult to enter the market; however,
the power of suppliers is relatively low. The competitive pressures that Pfizer is up
against are illustrated by this framework, as is the necessity of strategic agility in
order to maintain its dominant position in the market.

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 Figure 1 Porter's Five Forces

Internal Capabilities
Internal capabilities, particularly in research and development and strategic
acquisitions, are the primary drivers of Pfizer's competitive advantage. For Pfizer,
2022, the company's innovation is fuelled by its financial strength, which includes
revenues that exceed $100 billion. The framework known as the Resource-Based
View illustrates how Pfizer maintains its market leadership by utilising both its
tangible and intangible resources, such as highly developed research facilities and a
skilled workforce (Barney, 1991). With the help of this internal analysis, Pfizer has
demonstrated how it makes strategic use of its resources in order to innovate and
effectively respond to changes in the market.

Figure 2 RBV Framework

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Evaluation of Current Strategy
Pfizer's approach, especially in addressing the COVID-19 situation, showcases its
ability to adapt to market needs and underscores its prowess in innovation. The swift
advancement and dissemination of PAXLOVID® highlight the company's ability to
promptly respond to urgent health emergencies (Pfizer, 2022; Mallhi, 2020). In
addition, Pfizer's dedication to ensuring fair and equal availability of medications,
particularly in economically disadvantaged nations, demonstrates a conscientious
stance towards global health issues (Pfizer, 2022; Asundi et al., 2021). The
company's sustainability strategies, which are incorporated into its business model,
exemplify a proactive approach that is in line with worldwide movements towards
ethical and sustainable healthcare solutions (Sachs et al., 2021). Pfizer's strategic
positioning not only strengthens its market dominance but also enhances its
reputation as a socially responsible and innovative leader in the pharmaceutical
industry.

Recommendations for Strategic Improvement

It is recommended that Pfizer increase its focus on emerging health technologies,
such as artificial intelligence and biotechnology, which are transforming healthcare
(Topol, 2019). This will allow the company to strengthen its strategic position.
According to Porter and Kramer (2011), expanding into new markets, particularly in
parts of the world that are still developing, could also offer significant opportunities
for growth. Further strengthening Pfizer's competitive edge and meeting the ever-
changing needs of patients could be accomplished by placing a greater emphasis on
personalised medicine and sustainability, which would be in line with the trends that
are occurring in the healthcare industry worldwide (Schork, 2015). Through the
implementation of these strategic directions, Pfizer would not only be able to support
its growth, but it would also strengthen its commitment to innovation and the
improvement of global health.

Conclusion
The strategic audit of Pfizer Inc. highlights its formidable market position, which is
bolstered by its vigorous research and development efforts, strategic acquisitions,
and adept handling of global health challenges. The company's emphasis on

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innovation and ensuring fair availability of medicines underscores its flexibility and
commitment to societal obligations. Future strategies should prioritise the expansion
into emerging health technologies and markets, alongside a heightened focus on
sustainability and personalised medicine. The purpose of these recommendations is
to enhance Pfizer's growth and strengthen its position as a pioneering leader in the
pharmaceutical sector. Pfizer's trajectory indicates favourable prospects, with the
potential to enhance its influence in the global healthcare sector.

Bibliography
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