Pfizer and the Challenges of Pharmaceutical Industry Harvard Case Solution & Analysis

Pfizer and the Challenges of Pharmaceutical Industry Case Solution


The proposed threat for the company is tough competition in the market and every company tries to havea competitive edge in the market. With the highest number of rivalry firms; it has the threat of expansion in the market.

5. Challenges of Pharmaceutical Industry

The pharmaceutical industry has higher challenge because of the entrants of new firms as well as the current circumstances, because of Covid-19. As there is an industrial change and every company is trying to be autonomous,to increase the automation in their production. This creates tough challenge for every company because it takes higher cost to implement the modern machineries.(Laínez, 2012)

Apart from that, there are many rival firms, like: Gsk, Abbott and many others, which have the same products and they sell at the similar prices. These are the companies that generate higher revenues, which is in trillions and the incubated firms do not have such market capitalization, which is the greatest challenge for the industry, because the new entrants face difficult time to sustain in the market.

Moreover, there are some issues like the higher taxes, lack of raw materials and the concept of economies of scale, which create profit maximization. Every company tries to make its operations efficient in order to have effective results. Apart from that, there is some bad market reputation, which impacts the pharmaceutical industry, because of which the industry is expected to incur a higher cost. Moreover, the pharmaceutical industry consists of vertical integration where the research, market demand and the remedies of many unpredicted diseases are to be done, which is the main challenge for the industry. There is also the government policy to reduce the price of medicines, which brings loss to the industry, making it unable to reach the profit level.


The study is comprised of Pfizer Company mainly and the company’s market conditions its situational analysis. However, the pharmaceutical industry is the highest revenue generating industry, which saves the people’s lives as well. The current situation is tough for every industry but for the drug industry; there is a high challenge of new entrants and the substitutes. Moreover, the existing firms have taken their place in the market and there is a threat for new entrants because of not having the public trust. There are the hurdles, whose solutions are described, through which the companies can get the competitive edge in the market.

6. Recommendations

The proposed recommendation for the company is that it should emphasize on the primary drugs as well, alongside its top notch products. However, the company hasa good market image with an inclusion of having the highest market capitalization, but in order to reduce the prices of medicines as imposed by the government; it should reduce its costs by taking the concept of economies of scale and it should produce in the bulk quantity. Moreover, the company should make strategic partnership with other companies, in order to increase the market reputation and make the customer integration. In the recent times, where the pandemic has become the stressed condition globally, the pharmaceutical companies should start the awareness programs and campaigns to make the people aware about the disease and the possible remedies to overcome the situation.........................

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