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Strategic Management Pharmaceutical - Essay Example
Pfizer, Inc. is a leading pharmaceutical company which spends of $7.4 billion in R&D activities. The company has a clear growth strategy which fit into the overall corporate strategy (www.pfizer.com). The remarkable feature of Pfizer, Inc is that the company is concerned not so much with resources, but rather with organizational capabilities and the ways of organizing activities and units within the firm, in that such ways must enable growth through a more efficient use and application of these resources.
Pfizer Inc. pays a special attention to the product mix and geographical location (Johnson, Scholes 1998). Pfizer Inc. follows two pathways: growth with the same products in the same markets and development of new products for the same markets. Pfizer Inc follows vertical-integration which allows the company to integrate upwards. Also, growth strategy involves HRM and resource location aimed to meet the highest industry requirements and customers' demands. It was stated above that marketing departments work more closely with R&D departments to ensure that the products which are developed are those which cater for the changing needs of target customers and different needs of varying customer segments. In recent years, high failure rates in the introduction of new products have led departments to be very risk averse, with most 'new' products emerging being merely extensions of existing product lines and not truly new and innovative offerings. Its best selling and innovative products include Lipitor, Diflucan, Zithromax, Viagra, Celebrex etc. ...