Strategy in the Twenty-first Century pharmaceutical Industry Harvard Case Solution & Analysis

Strategy in the Twenty-first Century pharmaceutical Industry Case Study Solution

With the growing population of the world and increasing national income due to revival from the financial crisis and great depression, the pharmaceutical industry has increased in a substantial way with the aggressive growth rate of 6% per annum. Such increase in pharmaceutical industry depicts the increasing use of the medical research to develop the curable medicines along with other non-curable medicines, for example Anti-aging’sand skin revitalizing medicines. In addition, it has also been found that the avenge life span of the people in US and other developing region has also increased in two years that again outlines the (1) Success of the pharmaceutical industry and research in developing the right medicine (2) the increased penetration of the pharmaceutical and healthcare agents in the market in developing the right medicines for large scale and low scale diseases like cancer and cholera respectively.

Since the pharmaceutical industry has increased globally, the developing regions have showed the great potential markets for the healthcare providers to penetrate and gain the increased market shares.On the other hand, due to increased market potential, many players have emerged in the market to offer the medical solution and improvise the medicinal field. Such players include the biotech players that offers the medicinal research but on low scale, however such increase in the market has also caused improved litigation policies and government regulations to control the adverse or negative impact of the medicines on the mankind.

Strategy in the Twenty-first Century pharmaceutical Industry Harvard Case Solution & Analysis

The case illustrates the case of Pfizer’s and Merck that has been exposed to certain market opportunities along with the challenges that have come across in the quest of becoming the market leader in US, Europe, China, sub-Saharan regions and other developing nations.

Keywords:  Pharmaceutical, Biotech, Emerging markets, Competitive advantage, value proposition. Mergers and acquisitions, Government regulations.


The pharmaceutical industry has been expsosed to great opportunity and growth mainly because of new adaptive techniques to support research and development, along with the increasing global population and increasing income of the individuals that have resulted in greater spending on healthcare facilities.In addition to this, there has been a rise in the health insurance policies and facilities mainly in Europe and US to offer substantial access of the medical facilities to the under privileged market.However regardless of the increase in the growth and market share of pharmaceutical industry in US, Europe and developing countries, the businesses have been strictly controlled and regulated by the governments in terms of pricing and in terms of developing the cure for the minor diseases like Malaria,yet that covers the major portion in the markets.

Since the market of pharmaceutical is growing, a great flux of players in entering the markets in US, Europe and Developing regions like Africa and China to gain more market share and to access the market opportunities effectively,in such regard, Merck and Pfizer’s has attained a great market share in US, Europe and China by adopting different business techniques.perhaps the main focus of both the companies remain to be the research&development and expertise to improves the process in reducing the cost of developing medicines and also offering the right antidote for disease.

In addition to the research and development Merck has remain focused on developing its internal expertise and spent on marketing to bring awareness in the market. This though has not drastically effected the shares of the company yet it has drove away the value proposition developed through certain medicines in the market.In addition to this, Merck has increased its products’ portfolio however, the lifting of the license cap from the previous medicines has poised the great threat to the sustainability of the market share.Moreover,since the size of Merck has increased in US and Europe, more laws and litigation has been imposed on the company as it has been deemed to be assisted with the medicines that cause heart attack.However apart from this, Merck has been continually improving its research and development expertise in an attempt to minimize the cost and to improvise the position and brand image in the market.

Pfizer has been using the marketing techniques and the market reps technique to spread its product in the market. This strategic move has allowed the company to gain the comparative edge even on Merck group however, this has also caused some implementation of the restrictions on the sales reps that reach out to doctors directly in the market. In addition to this, Pfizer has been using the business strategy of acquisition and mergers to accommodate its research cost and to increase its market penetration, this has given Pfizer a great competitive edge in expanding the product all over the US, Europe and in developing regions. In addition to this, the technological advancement has also played a vital role in elevating the performance of the pharmaceutical companies, since it allowed the molecular testing through technological software and also the results of different combinations on the disease, allowing the businesses to control the cost in developing the molecular antidote without the development of primary test or genome in the market.

Hence it can be analyzed, that though market opportunity is eminent for the pharmaceutical players, yet there is need of the development of technological base that could help in reducing the cost of research and development which in turn would allow the business and the government to allocate the additional resources to new field, increasing the span of operations while keeping the profits high.Also, it can be gauged that though the market is expanding yet the pricing of the medicines is still under the regulatory control of the government bodies that restricts the businesses in charging the high prices from the customers, hence the need to implement the cost effective model is required by these players so to sustain the market position and market share in the long run......................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Other Similar Case Solutions like

Strategy in the Twenty-first Century pharmaceutical Industry

Share This