Pfizer Company Industry Analysis Essay
The Company is Pfizer
Please Read All Instructions
I. Introduction:
a) Project Overview: Provide an overview of your entire proposal.
II. Industry and Customer Value: Identify the factors that are valuable to the customers of your industry and write a summary of your findings.
a) Industry Overview: Brief description of industry revenues and where the company fits within the industry.
b) Top Competitors: Discuss the top three to five competitors based on revenue.
c) Company Selected: Justify your company choice. Provide background information on the company selected. Background information should
include the size of the industry in revenue, primary competitors, primary suppliers, and customer base.
III. Network Design:
a) Suppliers: Identify the top three criteria the company will use to select suppliers. Consider factors such as cost, location, quality, and value
added work.
b) 3PL Firms: Identify the top three criteria the company will use to select third-party logistics (3PL) firms. Be sure to address quality, delivery, cost,
wavelength, and tech support.
c) Distribution Centers: Identify the top three criteria the company will use to select distribution centers. Be sure to address cost, location,
delivery, and space.
d) Retail Stores: Identify the top three criteria the company will use to select retail stores.
IV. Pricing Management:
a) Customer Categories: Provide a description of the customer categories from a product-pricing management perspective.
b) Organization Categories: Provide a description of how the company would choose to use customer categories for pricing management and why.
V. Inventory Management:
a) Product Selling Season: Determine whether seasonal or generic products or both are sold. Determine if the selling is seasonal, steady, or hybrid.
b) Retail Inventory Strategy: Using the information you received from your interview with the industry retail store manager, determine what
inventory policy strategies the store has adopted for order quantity, safety stock, and reorder level.
c) Impact of Manufacturer’s Production Strategy: What impact does the nature of selling have on the supply chain? Consider domestic and foreign
supply base, safety stock levels, reorder points, and demand variability. Identify the production strategy for the company (continuous/mass
production, batch production, or project-based).
VI. Distribution Management:
a) Centralized Distribution Strategy: Describe your centralized distribution strategy. Explain why the strategy was selected and identify potential
risks based on your distribution strategy.
b) Decentralized Distribution Strategy: Explain why the strategy was selected and identify potential risks based on your distribution strategy.
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VII. Product Supply Contracts:
a) Production strategy and contracts: Complete an analysis of the impact of the production strategy on the supply chain. Identify the appropriate
production strategy and contracts for the supply chain, such as daily deliveries, weekly deliveries, and monthly deliveries of supplies. Consider
stable ordering versus high variability. Be aware that multiple strategies may be employed. If more than one strategy is used, be sure to discuss
when the contract approach is used and why.
VIII. Performance Measurements: Complete an analysis on how the industry supply chain performance is measured. Explain the performance measures
used to measure performance for each of the following parts of the supply chain.
a) Manufacturing: Identify the performance measure and explain how they attempt to perform better than their competitors. Be sure to address
addresses quality, cycle time, and takt time.
b) Distributors: Identify the performance measure and explain how they attempt to perform better than their competitors.
c) Retailers: Identify the performance measure and explain how they attempt to perform better than their competitors.
d) Third-Party Logistics Company: Identify the performance measure and explain how they attempt to perform better than their competitors. Be
sure to addresses cost, efficiency, and wavelength.
e) Supply Chain Competitive Edge: Discuss how the supply chain creates a competitive edge. Be sure to consider low cost, service levels, wide
distribution network, and quality level in your response.
Final Submission: Supply Chain Management Plan
In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
reflect the incorporation of feedback gained throughout the course and examine how performance is measured, and discuss how the supply chain creates a
competitive advantage. This submission will be graded with the Final Project Rubric.
Pfizer Company Industry Analysis
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Institution
Due Date
Pfizer Company Industry Analysis
Introduction
The global Consumer Healthcare network uses its sales and marketing channels to promote the company products and occasionally utilizes distributors in cases of smaller markets. The advertising and promotions are disseminated through print media, digital platforms alongside other media advertising channels, and in-store promotions. Consumer Healthcare products are distributed and sold through various channels that include pharmacies, retail chains, grocery, and convenience stores (Gereffi, 2017). There is a need for the company to implement business strategies to ensure long-term growth irrespective of various major challenges and changes within their patent portfolio. This proposal entails different aspects of the company that includes: industry and customer value, network design, pricing management, inventory management, distribution management, product supply contracts, and performance measurements (Gereffi, 2017).
Industry and customer value
The pharmaceutical industry comprises many big players. The various players entail Pfizer Inc., Merck & Co, Novartis AG, GlaxoSmithKline, Takeda, and Amgen. In this case, Merck is considered the top competitor of Pfizer within the pharmaceutical field, generating 114% the Pfizer's revenue. The second is Norvatis generating approximately 6 billion more revenue than Pfizer. Then there is Bristol Myers Squibb, a public company with headquarters in New York, and has fewer employees than Pfizer (Lakdawalla, 2018).
Pfizer's single largest market includes the United States and accounts for approximately 45% of the total revenue. Other emerging markets include China, Africa, and Latin America and generate approximately 25% of total revenue. The revenue from developed Europe accounts for approximately 20% of total revenue and the rest of the world an estimated 10 of total revenue (Pfizer, Inc., 2020). The company has various manufacturing facilities within different countries such as China, Germany, India, Italy, Japan, the U.S., and Singapore. However, the manufacturing headquarter is located in New York City. The customers of Pfizer recorded a growth within their revenue costs by approximately 54% in the 4th quarter of 2020. The revenues generated in 2019 show a decrease by 4% from $ 1.9 billion. This reveals an operational decrease alongside the unfavorable influence of foreign exchange of approximately $ 1.4 billion. The decrease in the cost of sales led to an increase in Net income (Pfizer, Inc., 2020).
Pfizer Inc.
Pfizer Inc. is identified as one of the leading pharmaceutical companies within the global market. The company operates across the regions of the world; the multinational company operations enable the company to access global economic benefits across the regional markets, despite existing setbacks in some markets. The company was founded in 1849 and has grown into a well-known brand all over the world. The organizational size of the company is a reflection of its global success. Pfizer's biggest market for biopharmaceutical products is the United States market.
Pfizer Inc. manufactures various top-selling pharmaceutical products within the global market. The company's capabilities in terms of size alongside large market share support their further business growth. It is important that the firm utilizes its aspect of strength alongside proactive abilities for the purposes of overcoming market risks alongside industry risks. Improvement in their research and development department, the company has been able to develop and introduce various novel products for the benefit of the business and their consumers. Some of the products include; Lyrica, Prevnar, Celebrex, Lipitor, Enbrel, and Viagra, amongst other many products. The majority of the products, especially those with no direct competitors in the market, are identified as performing profitably. The major dominance of the company within target markets comes from the patented drugs (Gereffi, 2017).
Size of organization and market share
The size of the company and business size can be identified through various performance indicators. For instance, the total company sales in 2014 were approximately $ 49 billion, with 2017 recording roughly $52 billion. Such differences in statistics are a strong indicator of a company's profitability and growth despite various obstacles within the pharmaceutical industry. Pfizer's performance has remained stable despite an economic crisis, and the business has been kept profitable due to its international presence. The company possesses leading market shares within various segments. For instance, the company has a 76% share within the infectious and respiratory infection market segment and a further 76.1% market share within the consumer healthcare and vaccines segment. Notably, Pfizer's market share is high compared to that of the competitors within the pharmaceutical industry.
One of the business strengths of Pfizer Inc. entails its popular brand that is recognized globally for providing innovative pharmaceutical products. The company's large organization's size provides one of the eminent strengths that provide a basis for its massive capabilities. The majority of the company's products are unique since they have patent protection.
Sales, marketing and Customers
The global biopharmaceutical businesses promote the company products to the healthcare sector, including patients. The company utilizes direct marketing to consumers within the United States by using direct-to-consumer advertising aspects capable of communicating approved applications and benefits alongside risks of various company products. The company also sponsors various advertising focusing on education and public awareness on disease prevention and staying healthy. This is done through various patient-related assistance programs (Martin et al., 2018).
The principal pharmaceutical products are sold directly to wholesalers, retailers, clinics, and hospitals, including government agencies. The company works closely with MCOs towards enabling them with education on patient and disease management alongside other tools capable of assisting the various medical treatment schedules. The various revenues from different pharmaceutical wholesalers entail McKesson Inc. comprising 12% of the total revenue, Cardinal Health Inc. accounting for 9% of the total revenues and the AmerisourceBergen Corporation accounts for 8% of the total revenues (Gereffi, 2017).
Network design
The following provides factors of consideration for Pfizer while identifying the appropriate Global 3PL partners for the supply chain: scalability of their operations, comprehensive warehousing, and transportation developed technological platform, cost-effectiveness, and proven track record. The scalability aspect focuses on the ability of the company to scale their operations to the global growing requirements as well as Pfizer Inc. growing needs. The concept of bi-directional scalability directly influences the efficiency of the company's supply chain. The logistics provider should have the capability of managing sudden changes within the market seamlessly. The 3PLs that provide the company with logistic services should have cutting-edge technology that provides high-level optimization through cloud-based platforms (Martin et al., 2018).
The restructuring of the supply chain required that Pfizer converts and utilizes some of its warehouses from the 3PLs to reflect variable rather than fixed expenses. The reduction of the number of 3PLs enabled Pfizer to reduce the transportation costs by close to 10%. There is also the aspect of reducing the number of accessory charges significantly. The 3PLs Panalpina, DHL, and I reduce the cost and ensure high standards of care are maintained. In this case, a good percentage of Pfizer transportation in Asia is subject to DHL, including the USA, alongside handling the plight of external suppliers globally. The major transportation handler in America is Panalpina, with companies operating in Europe, the Middle East, and Africa. The considerations revolve around high efficiency, cost-effectiveness, as well an un-disrupted supply chain (Gereffi, 2017). Such technology integration has helped in the dramatic simplification of the company's transportation purchasing. In this case, only three third-party logistic companies are utilized: DHL, Panalpina, and UTi Global. Pfizer uses the G.T. Nexus technology for the provision and dissemination of information hub services.
Distribution centers
Pfizer Inc. redesigns its global supply chain alongside delivery systems to achieve agility within an increasingly complex and competitive global market. The pharmaceutical industry's traditional approach towards freight management was considered overwhelmed due to radical changes within the marketplace. Some of the dynamic changes entail pressures on costs, venturing into emerging markets, and management of a vast portfolio of new drugs within the supply chain. In the plight of such growing challenges, Pfizer incorporated information technology for the reasons of helping facilitate and efficient management of drug shipment transportation from manufacturing sites to different market segments. This has led to the virtualization of the supply chain to enhance easy tracking and trace of goods and services within a central unit platform. The application of the "cloud technology" helps prevent the company from encountering various underlying physical changes alongside the rapid removal of network participants. The technology helps in analyzing and managing the company's complex supply chain network, therefore providing the management partners with a single version of the blueprint that all stakeholders use (Martin et al., 2018).
The various analytical tools help in the organization of information within the system for the purposes of creating data that the company's logistics management can apply. This enables the management to follow as well as identify services, including savings opportunities. Such wealth of information makes possible the conversion of Pfizer's crucial information into action. Pfizer eases the congestion by us...