AN INTRODUCTION TO PFIZERPfizer Inc, founded in 1849, is dedicated to better health and greater access to healthcare for people and their valued animals. Our purpose is helping people live longer, healthier, happier lives. Our route to that purpose is through discovering and developing breakthrough medicines; providing information on prevention, wellness, and treatment; consistent high-quality manufacturing of medicines, consumer products; and global leadership in corporate responsibility. Every day we help 38 million patients, employ more than 100,000 colleagues, utilize the skills of more than 12,000 medical researchers, and work in partnership with governments, individuals, and other payers for healthcare to treat and prevent illnesses—adding both years to life, and life to years.Pfizer is a research-based global pharmaceutical company. Pfizer discovers, develops, manufacturers and markets leading prescription medicines for humans and animals, as well as many of the world’s best-known over-the-counter medicines and consumer healthcare products.Pfizer operates through five distinct divisions:1. Pfizer Global Research & Development – PGRDPGRD is dedicated to drug discovery and to the development of medicines ready for the market.2. Pfizer Global Manufacturing – PGMPGM is the manufacturing and largest division of Pfizer Inc. PGM supports our global manufacturing and distribution of Pfizer products.3. Pfizer Global Pharmaceuticals – PGPPGP markets a wide range of prescription-only medicines and consists of all the commercial departments responsible for supporting the business.4. Pfizer Animal Health – PAHPAH provides some of the most innovative and successful medicines for companion animals and livestock.5. Pfizer Consumer Health Products Company – PCHPCH is responsible for the sales and marketing of all consumer healthcare products, over-the-counter medicines, and other health related and personal care products.The company produces the impotence treatment Viagra, cholesterol lowering Lipitor and, for high blood pressure and angina, Norvasc. The animal division produces treatment both for livestock and pets. The company's consumer division produces the consumer drugs Listerine, Certs, Dentyne. Pfizer engages in international business both through their subsidiaries and distributors. The company's headquarters are located in New York, US.

CORPORATE PHILOSOPHY“At Pfizer, the importance of creating an inclusive environment where diversity of background, thought and experience is practiced and valued. Our policies reflect that philosophy by mandating equal treatment for all employees globally without regard to sexual orientation, gender identity or gender expression. So too does our recognition of same-sex domestic

partners for benefits ranging from medical coverage to adoption assistance as well as our thriving LGBT networking groups, which are involved with many charitable and educational activities both within Pfizer and in their local communities. Pfizer’s score of 100% for the Human Rights Campaign Corporate Equality Index for the second consecutive year reflects our active commitment to attracting, developing and retaining the most talented workforce available.”

VISION STATEMENT : "We will become the world's most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live."

PFIZER MISSION STATEMENT “At Pfizer, we're inspired by a single goal: your health. That's why we're dedicated to developing new, safe medicines to prevent and treat the world's most serious diseases. And why we are making them available to the people who need them most. We believe that from progress comes hope and the promise of a healthier world.”Evaluating PFIZER’S mission statement on 9 ElementsA good mission statement should comprise of the following elements:

Customers Products and services Market Technology Survival, growth & profit Philosophy Self-concept Concern for public image Concern for employee

The three features missing in Pfizer’s mission statement are Products/services Technology Concern for survival and growth Concern for employees

PHARMACEUTICAL INDUSTRY IN PAKISTANThe pharmaceutical industry of Pakistan comprises of over 400 manufacturing units including 31 multinationals, besides 10,000 retail chemists, 6,000 drug wholesaler/distributors and about 1,500 importers. Total sales of Pharmaceutical products, both locally manufactured and imported, in a year (from march 03 to march 04) was reported Rs. 60 billion1, out of which 55% sales ( Rs.33 billion) comes from multi national companies while remaining is distributed among local pharmaceutical companies of Pakistan.

INDUSTRY HISTORY

1

The foundation of the pharmaceutical industry of Pakistan was formally laid in 1950 with the establishment of local subsidiaries of foreign firms and formulation of imported raw material based medicines by local entrepreneurs. By 1980, 170 pharmaceutical companies were set up in the country of which 150 were local companies and 20 were multinational firms. The industry was able to attract considerable investments as more firms and local entrepreneurs entered the industry due to its high profitability and prospects for growth.INDUSTRY STRUCTURE 2 The pharmaceutical industry of Pakistan is a highly fragmented industry. The Multinational companies in Pakistan hold 55% of the share in the market while the local manufacturers hold the rest, the table below shows the top 15 pharmaceutical companies in Pakistan, along with their annual sale and market share. Analysis of the Industry Using Michael Porter’s Five Competitive Forces

2

IndustryCompetitors

Rivalry AmongExisting Firms

Substitutes

Hi

High

Modera

Buyers Lo

PotentialEntrants

Suppliers

High

THREAT OF NEW ENTRANTSEntry in Pharmaceutical industry of International standard require high level of market understanding and technological know how it needs all in one skill, knowledge and abilities of the employees and advanced manufacturing and laboratory system which needs a large sum of investment but in Pakistan the situation is quite different because of Government’s inclination towards National pharmaceutical industry and corruption in providing licenses to them.

BUYERSThe prices of medicines are fixed and it is an emergency good people are bound to buy them for their cure from disease or prevention so there is no bargaining power of buyers in pharmaceutical industry.

SUPPLIERSPharmaceutical industry has various suppliers of raw materials and packaging. Glass industry is one of the major suppliers of the pharmaceutical industry; agriculture sector is also required for supply of the plants to get some extracts from them, biochemical industry other packaging materials like aluminum, paper, and plastics.

SUBSTITUTESThere are substitutes available in form of herbal and homeopathic medicines and various house hold cures.

EXISTING COMPETITORSThe competitors in pharmaceutical industry are all those who have extensive knowledge about there products and are manufacturing high quality medicines. In terms of generic medicines industries face a tough competition.

THREAT OF NEW ENTRANT

Low Moderate High

There is high threat of new entrant because of government’s favorable policy for the local pharmaceutical firm. Most of the new companies do not even have the valid license they can easily get it through bribery or there influences.

3.1.2 BARGAINING POWER OF BUYERS

|Low Moderate Strong

Customers are bound to buy pharmaceutical products due to their sensitive nature. Buyers are neither the decision makers nor they have required information or skills to take a decision. They have to rely upon the advice of their doctors.

Due to a lot of similar brands with little or no difference, buyers have acquired the power to buy the cheaper one and to reject the expensive one. But this power is simply not effective in brands with high differentiation.

There is a low bargaining power of buyers because the prices are controlled by government regulatory authorities and also change due to currency rates and inflation rates. Medicines are life savers which the customers are bound to buy for their wellbeing.

THREAT OF SUBSTITUTES

|Low Moderate Strong

There are a lot of generic products emerging in the industry lowering the overall profitability of the industry. Availability of the herbal and homeopathic medicines increases competition and the threat of substitutes.

Increased competition for Viagra as its high cost encourages use of cheaper alternative treatments. Generic products are in rise, as people tend to spend lesser amount on allopathic medications because of slow economy. There is a moderate to strong threat of substitutes because of availability of the herbal and homeopathic medicines and customers’ illiteracy rate. They get the cure from these medicines along with this there has been a failure towards the government’s end to washout fake and smuggled medicines from the market.

3.1.4 BARGAINING POWER OF SUPPLIERS

Low Moderate Strong

There is moderate to low bargaining power of the suppliers because pharmaceutical industry have specialized suppliers and those suppliers are also dependent on the pharmaceutical industries for the well being of their business. The raw material which is supplied to the pharmaceutical companies like chemicals, glass, plastic etc also has regulated prices which are affected by the government policies and economical changes.

3.1.5 DETERMINANTS OF RIVALRY AMONG EXISTING COMPETITORS

|Low Moderate Strong

There is a moderate to high competition among competitors in terms of brand equity because prices are regulated by government and political forces so they need to build strong consumer loyalty to remain in business.

MNCs are using their superior technology and research and development skills to introduce new products tailor made for specific target market needs, On the other hand, national companies are offering low prices and trying to outclass MNCs in a price war.

The rivalry is not only among national and multinational companies, National companies are against each other on battle field of cost management to offer lowest possible cost, same as; MNCs are striving to

outclass each other through advanced products based upon research and technology.

PEST ANALYSIS

The factors that affect any industry are:

1. POLITICAL FACTORS: The government designed policies and laws for the operational functions of the pharmaceutical industry tax and trade laws etc.

2. ECONOMIC FACTORS: The ups and downs in the market prices, currency rates, currency exchange rates are the factors that influence the pharmaceutical industry.

3. SOCIAL FACTORS: People’s awareness about the importance of medicines there trend to get a cure for there diseases.

4. TECHNOLOGICAL FACTORS: The manufacturing and operational systems through which medicines are manufactured and processed. Technology in modern organizations is the know-how, the Equipment, the experience, the knowledge and skills that are required for better production and better service. Growth in R&D activities is an important factor affecting the industry.

3.2.1 POLITICAL FACTORS

FAVOURABLE MODERATE UNFAVOURABLE

Threat Of New Entrants

4 1 7

Bargaining Power Of Buyers

6_

4

Threat Of Substitutes 3

_ 1

Bargaining Power Of Supplier

4 1 2

Intensity Of Rivalry Among Competitors

4 3 2

TOTAL 21 5 16

Following political factors are affecting the pharmaceutical industry:

Multilateral lawsAll the pharmaceutical industries have to comply with the rules that are formulated by WHO and Intellectual Property Rights (TRIPS). Along with that there is strong government influence in pricing strategy of the industry.

Political disturbanceLocal pharmaceutical industry also suffers because of the political disturbances in the country like strikes in both public and private sectors.

Legal factorsMinistry of health’s strong regulations about the pharmaceutical industry for launching new medicine and changing the prices for the specific medicine has affected the profit margin of the industry.

Easy issuance of license to sell drugs to the local companies has increased the price competition in the industry there are 370 national pharmaceutical units while 30 MNCs.

Import DutyImport duty on the raw material for the medicine is quite high (35%) which increase the cost of manufacturing the medicine and strict regulation about the price increase inversely affect the profitability of the industry. Most of the import takes place from UK, Switzerland & India.

Pricing policiesIn Pakistan, government decides the price for pharmaceutical products, since the past 4 years government has not allowed increasing the prices of pharma products. This creates problem with profitability of products and keeps back companies to profit from their new innovative products

Strict government control over pricing has made many medicines uneconomical, with the result that they either become available only on the black market at inflated prices, or disappear completely. In this environment, manufacturers, both local and foreign-owned, have proved unable to generate the profits needed for capital investment. This is not helped by a regulatory system best described as rudimentary. There is virtually no public drug reimbursement or IP protection; patent law was officially tightened in December 2000, although the effectiveness of this has been questioned. In 2002, further changes were made, making Pakistan's IP laws even weaker Prices of medicines are officially controlled, although the government lacks the capacity to enforce its policies in this area. Some price rises have been allowed since 2000, but the current government shows little sign of enacting any serious reform of the

pharmaceutical sector, preferring to allege profiteering on the part of the pharmaceutical industry.

Import LawAn import law allowing Indian-made drugs to enter the market was signed in June 2005, although after several months, not one permit has so far been issued.

3.2.2 ECONOMIC FACTORSA cost increase of 90% for pharmaceutical industry has arisen over the last five years generated by three factors - an inflation of 76%, a devaluation of Pakistani currency by 85% in relation to the U.S. Dollar, and an introduction of duties of 10% beginning June 1996.

Insufficient price increases which do not compensate for the cost increases for "Controlled" medicines, the price increase was only 21% in the last five years for "Decontrolled" medicines, and the price increase was only 29% in the last five years.

SOCIAL FACTORSLow human developmentLike homeopathic, and hakimi products, due to the fact that more than half of the population of Pakistan is poor and uneducated and they often resort to cheaper medicines used by their fore fathers.

Viagra RegistrationOne opportunity that company seeks is the registration of Viagra in Pakistan. Pakistani government has banned Viagra in Pakistan due to some ethical and religious reasons but Pfizer claims that except for in Pakistan Viagra is being sold in all Muslim countries including Saudi Arab. According to a WHO report, there are 25% spurious/counterfeit/substandard drugs in the under developed countries. About 10% on the whole world markets, including the developed countries have such medicines.

Self MedicationLow literacy rate cause self medication or going to the chemist for reference instead of doctor to save the cost.

TECHNOLOGICAL FACTORSPharmaceutical Products for incurable diseasesBy using its financial and human resources of Research and Development, Pfizer can make great contribution to the world by creating pharmaceutical products for AIDS, HIV and Cancer.

Research and Innovation

Rapid technological advancement and the development of the new methods to cure diseases have affected the industry. New medicines for fatal diseases are the growing sector of the industry like Cancer drugs, Hepatitis drugs and vaccines, AIDS drugs, diabetes medicines etc.

Emerging Diseases

Now pharmaceutical industry after the coming of viruses like bird flu, anthrax, Dengue Virus is involved in extensive R&D to find the cure or vaccines for these diseases.

3.2.6 EFFECT OF PEST ON PORTER’S FIVE FORCES

Factor and Effect

Opportunity or

Threat

Buyer Power

Supplier

Power

New entry

Substitute

Rivalry

Research and Innovation

Opportunity

Low Low Low High

Emerging Diseases

Opportunity

Low Low High High High

Pharmaceutical Products for incurable diseases

Opportunity

Low Low Low Low

Self Medication

Threat High High High High

Viagra Registration

Opportunity

Low Low

Low human development

Threat High High High High

ECONOMIC FACTORS

Threat Low High High

Import Law Threat High Low High Pricing policies

Threat High Low Low High

Import Duty Threat Low High High Legal factors Threat High High High High Multilateral laws

Opportunity

High Low

3.3 EXTERNAL FACTOR EVALUATION MATRIX

In the CPM it reflects clearly that GSK is highly competitive with 3.25, followed by ABOTT and PFIZER. The product quality of all the three companies is very strong. The market share of GSK (market leader), ABOTT, and PFIZER is 7%, 4% and 3.08% respectively.

(EFE)

KEY EXTERNAL FACTORS

WEIGHT

RATINGWEIGHTED SCORE

Opportunities

1. Customers interest and preference for buying foreign medicines rather than local medicines

.15 3 .45

2. Increased awareness about allopathic mode of medicine

.08 3 .24

3. Pakistan has a population growth rate of 2.6% per annum. Higher population growth means that there would be a larger market available for the pharmaceutical industry.

.05 4 .20

4. Emerging diseases .12 3 .36

5. Acquisition of local companies

.12 1 .12

6. Governments interest in having trade with India in medicines

0.05 2 .10

7. Allowing of TRIPS to have parallel trade on some generic

0.06 2 .12

medicines.

Threats

1. Continued weakening of the PKR & fluid GOP policies will put pressure on profit margins & can impede sales

.10 2 .20

2. The sale of FAKE AND SMUGGLED MEDICINES at low prices

.06 3 .18

3. Economic and political fluctuations

.09 2 .18

4. Use of herbal and homeopathic medicines

.06 4 .24

5. Government inclination of encouraging more national pharmaceutical companies

.11 2 .22

6. Self – medication 0.05 3 .15

7. Strong brand name of major competitors such as GSK, ABBOTT.

0.06 3 .18

TOTAL 1.00 2.94

3.3.1 Interpretation of EFE MatrixThe Total Weighted Score of 2.94 in the External Factor Evaluation (EFE) Matrix denotes that Pfizer is responding in an average way to existing opportunities and threats in the Pharmaceutical Industry. In other words, Pfizer strategies are only ordinarily taking advantage of existing opportunities and somewhat minimizing the potential adverse effect of external threats.

The strategic signals Customer’s interest and preference for buying foreign medicines rather than local medicines Emerging diseases, Acquisition of local companies, Continued weakening of the PKR & fluid GOP policies will put pressure on profit margins & can impede sales, Government inclination of encouraging more national pharmaceutical companies) from the EFE are giving a clear picture of their opportunities and industry threats, on which Pfizer has started and should do more to increase their market share and revenues. By acquiring good strategies to achieve potential opportunities to reduce the effects of the threats Pfizer should adopt good strategies.1 MICRO-ENVIRONMENTAL ANALYSIS

4.1 INDUSTRY ANALYSISFrom the internal analysis, we get the strengths and weaknesses of the company. Which are derived from the following four components:

Value chain Core Competencies Strategic Costs Financial Trends

4.1.2 VALUE CHAIN ANALYSIS

Product Research& Development

Human Resource Management

Raw material from China, India & Germany

Final ConsumerDistributors Sales &

MarketingRetail

pharmacists

General Administration

Operations

SUPPLIERS OF RAW MATERIALS

SUPPLIERS FOR CHEMICALS: PFIZER purchases its raw materials from regional supplier that is selected by the head office after inspection and testing their chemicals according to their quality standards and also approved by the FDA. Presently for Asia china is the major supplier.

SUPPLIERS FOR PACKAGING: PFIZER purchases its packaging material from the local manufacturers of the company in which it’s operating.

OPERATIONS

Operational activities are done at the plant located at 12 Dockyard Road, West Wharf, Karachi in Pakistan.

DISTRIBUTORS

PFIZER uses four major channels for the distribution of their products: drug wholesalers, retail pharmacists, hospitals, and doctors.

The distributors are hired by PFIZER. PFIZER distributors have structured route plans for distributing all its products. No expenses are shared by the company.

Trade Margin: The trade margin is set for this industry, 10% for distributors and 15% of retailers. However there are trade promotions deals to keep them happy and also incentives provided by PFIZER to retailers on good performance.

SALES AND MARKETING

PFIZER has a well trained sales and marketing staff who personally visit the doctors and tell them about the effectiveness of their medicines they also go to the chemists for the same purpose.

RETAIL PHARMACISTS

Drugs can only be sold through authorized chemists. Retailers have to get registration approved by the government to sell drugs. The main focus of companies like PFIZER is to convince doctors through their sales team to prescribe their drugs. This sales team is on the company’s payroll and especially trained. The distributor’s sales force is responsible for distributing medicines to chemists, retailer-cum-chemists and hospital pharmacies.

4.1.2 CORE COMPETENCY

A core competency is a well-performed internal activity that is central (not peripheral or incidental) to a company’s competitiveness and profitability. Often, a core competency results from collaboration among different parts of an organization.

The core competency of PFIZER is their research and development department.

Research & Development

With a 2006 estimated Pfizer budget of $7.8 billion in research & development (R&D), Pfizer boasts the industry's largest pharmaceutical R & D organization: Pfizer Global Research and Development.

Pfizer's search for new treatments spans hundreds of research projects across 18 therapeutic areas - more than any other company. Pfizer’s scientists, clinicians, technicians, and other professionals employ state-of-the-art tools ranging from robotic high-throughput screening (a method pioneered by Pfizer) to sophisticated genomic studies, to deliver a steady stream of innovative new products that enhance human and animal health.

Painkiller medicine, antibiotics and cardiovascular. Pfizer has largest share in antibiotics

Animal Health product

Skilled, Technical, Innovative and diversified staff because Pfizer has 4 companies under one name Pfizer, Pharmacia, Upjohn and Parke Davis.

Links with more than 250 partners in academia and industry strengthen its position on the cutting edge of science and biotechnology by providing access to novel R&D tools and to key data on emerging trends. A half century ago, despite daunting odds and great risk, Pfizer pioneered the mass production of penicillin, ushering in the modern pharmaceutical era. Now, more than 12,500 Pfizer scientists at our research facilities around the world continue the quest for new medicines with the same pioneering spirit.STRENGTHS AND WEAKNESSES

STRENGTHS

1. A strong product portfolio 2. Pfizer has established itself as a global provider of innovative healthcare solutions, and rather than focusing on a small number of specialist therapeutic areas, Pfizer has, instead, concentrated on product innovation in any attractive therapy area, and its current portfolio and R&D pipeline reflect this. It has strengths in a number of therapeutic areas, and its size and strong market presence is sufficient to support this diversity.

Pfizer has seven blockbuster drugs, each with revenues exceeding $1B each year. Topping the list is Lipitor, a cholesterol reduction drug (Sales of $6.3B per year). The list continues: Norvasc, a calcium channel blocker for treatment of hypertension and angina ($3.7B); Zoloft for treating depression and panic attacks ($2.4B); Neurontin for epilepsy and neuropathic pain ($1.7B); Viagra ($1.6B); Zithromax, an oral and injectable liquid azalide antibiotic ($1.5B); and Diflucan, also an injectable and oral broad-spectrum antifungal medication ($1.1B).

3. Research & Development

With a 2006 estimated Pfizer budget of $7.8 billion in research & development (R&D), Pfizer boasts the industry's largest pharmaceutical R & D organization: Pfizer Global Research and Development. Pfizer's search for new treatments spans hundreds of research projects across 11 therapeutic areas - more than any other company. Medicines library includes approximately 2 million compounds, and our pipeline holds more than 160 projects in development and over 300 projects in discovery research in 11 therapeutic areas.4. Strong Marketing

Pfizer has a global marketing strength, which has made it a very attractive marketing partner for, smaller or less experienced companies. The company's recognized marketing strength will mean that opportunities for promising products are likely to be discussed with Pfizer, giving it access to an array of promising compounds for sale on the international market.

Pfizer’s strong marketing and sales operations have enabled the company to become the “partner of choice” for the marketing innovative products developed by others. Pfizer has been extremely skilled in creating alliances with other pharmaceutical companies via co-promotion agreements. Through co-promotion and licensing agreements, Pfizer promotes and markets such highly promising products as Celebrex, Bextra, Aricept, and so on with alliance partners5. Mergers , Acquisitions and Collaborations

One of the strengths of Pfizer is its ability and strategy of mergers, collaborations and acquisitions. The recent and most important such act was acquisition of Pharmacia On July 15, 2002. Pfizer with Pharmacia moved from fourth to first in Europe; from third to first in Japan; and from fifth to first in Latin America in pharmaceutical sales. Before the acquisition by Pfizer, Pharmacia merged with Upjohn. Pfizer had also acquired Parke Davis, making Pfizer the biggest Pharmaceutical Company in world.

Other alliances include a partnership with IBM and Microsoft to create Amicore, an independent company that is developing practice management systems; and a chronic disease management program developed with the State of Florida’s Agency for Health Care Administration.

6. World’s largest Animal Health company

Pfizer’s animal health units market is one of the largest selling and broadest product lines in its field.

7. Social Responsive

Pfizer’s tradition of Philanthropic activities in making every community a better place to work and live like wise Helping the tsunami orphans, Teaching about vaccine preventable diseases and Women and children in health education program etc.

8. World’s largest selling medicine, Lipitor

Lipitor totaled Full-year sales of $12.2 billion reflected 12-percent growth over 2004. Lipitor totaled $3.4 billion in the fourth quarter, reflecting growth of 3 percent over the previous year's quarter, a difficult comparison in light of Lipitor's 23-percent revenue growth in the fourth quarter of 2004, exacerbated by four fewer business days in the 2005 quarter. Full-year sales of $12.2 billion reflected 12-percent growth over 2004.

9. Competent sales force Pfizer has a competent and strong workforce reaching the customers needs. Majority of the sales revenue is generated by the efforts of the sales force.

WEAKNESSES

1. Decreasing market shareAfter 2003, Pfizer is facing a decline in the market share of pharmaceutical industry.

2. No internal supplier network Pfizer rely on the imports from limited suppliers, which are China, India, and Germany. This increases the import duties and thus the cost of the output.

Internal Factor Evaluation Matrix (IFE) Internal Analysis evaluates Strengths and Weaknesses in the functional area of Pfizer’s business and it also provide the basis for identifying and evaluating relationships among those functional areas. The strategy

formulation tool used for Internal Analysis is called Internal Factor Evaluation (IFE).

Internal Factor Evaluation Matrix (IFE)

Key Internal FactorsWeight

Rating

Weighted Score

Internal Strengths

1.  A strong product portfolio 0.12 3 .36

2.  Strong Research and development Network

0.20 4 0.80

3. Strong Marketing 0.07 3 0.21

4. Mergers, Acquisitions and Collaborations

0.17 3 0.51

5.  World’s largest Animal Health company

0.12 4 0.48

6. Socially responsive 0.09 3 0.27

7. World’s largest selling medicine, Lipitor

0.09 4 0.36

Internal Weaknesses

1. Decreasing market share 0.08 1 0.08

3.  No internal supplier network 0.06 2 0.12

TOTAL1.00 3.19

Interpretation of IFE MatrixThe Total Weighted Score of 3.19 in Internal Factor Evaluation (IFE) Matrix indicates that Pfizer is above average in its overall internal strength. The major strengths are strong Research and Development Network, largest animal health company and mergers and acquisitions whereas the major weakness is decreasing market share.

The strategic signals from the IFE indicates as follows: Strong Research and development Network Mergers, Acquisitions and Collaborations World’s largest Animal Health Company

Decreasing market share

These indicators could be utilized for improvement of there strategic implementation as, by strong RD Global using as a cousion in Pakistan, Pfizer can develop a strong RD division to have more research base medicines to be produced according to the current needs and emerging dieses of Pakistan.

Pfizer can also utilize their skills of mergers and acquisitions (as previously done with Pak Davis, which made them very strong globally) in order to retain its market share and have strong grip in Pakistan by acquiring those local companies that have a powerful supplier and distributions which will help it in integration.

As Pfizer is world’s largest animal health care research base institute, they can utilize there this strength over their weaknesses of decreasing market share, by catering more products in animal sectors, which will also help them, as Pakistan is already an agricultural state requiring more animal health care products.

CURRENT GENERIC POSITIONS AND STRATEGY

Of all the generic strategies, PFIZER is currently using BROAD DIFFERENTIATION STRATEGY. Pfizer is practicing Broad differentiation strategy because:1. With differentiation in the various divisions, Pfizer caters its customers by

providing products for animal health, consumer health care, and personal care.

2. Medicines which Pfizer manufactures serve larger segments of the society. For example Pfizer is conducting a research in 11 therapeutic segments, making medicines for cholesterol patients like Lipitor and concentrating to maintain the world’s largest animal health segment.

3. Pfizer remains dedicated to serve people by making heavy investments in Research & Development and producing and innovating new products for various diseases better than rivals.

TYPES OF FEATUREBROAD

DIFFERENTIATION STRATEGY

PFIZER’S POLICIES

Strategic target A broad cross section of market

PFIZER international is physically present in 180 countries

Basis of competitive advantage

An ability to offer buyers something

PFIZER only pharmaceutical

M

ark

et T

arge

tN

arro

w B

uyer

Bro

ad

Ran

ge o

f

Seg

men

t

Buy

ers

Best-cost provider strategy

Overall Low-cost Provider Strategy

Differentiation Strategy

Focused Differentiation

Strategy

Focused Low-cost Strategy

Low Cost Differentiation

different from competitor

company which deals in animal health care and keeps on innovating and producing new medicines, as a research-based pharmaceutical company

Product line Many product variations, wide selection, emphasis on differentiating features

With a 2006 estimated Pfizer budget of $7.8 billion in research & development (R&D), Pfizer boasts the industry's largest pharmaceutical R & D organization: Pfizer Global Research and Development. Pfizer's search for new treatments spans hundreds of research projects across 11 therapeutic areas - more than any other company. Medicines library includes approximately 2 million compounds, and our pipeline holds more than 160 projects in development and over 300 projects in discovery research in 11 therapeutic areas.

Marketing emphasis Build in whatever features buyers are wiling to pay for.

One of the main Pfizer’s corporate philosophies is the role of diversity which in company means that to be aware of the contribution that can be made by

everyone with whom they make business including customers and stakeholders.