Pfizer Final

7/31/2019 Pfizer Final

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Introduction

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Pfizer Inc. Founded in 1849, is dedicated to better health and greater access tohealth care for people and their value added animals. Everyday, Approximately81,900 colleagues in more than 150 countries work to discover, develop,manufacture and deliver quality, safe and effective prescription medicines topatients.

Pfizer Inc. is the worlds most profitable privately funded research based

biomedical organization. After its merger with Warner-Lambert in July 2000,

Pfizer became the worlds largest pharmaceutical company. Pfizer has a valuableand resourceful R&D division, huge global sales, popular products which madethis company profitable.

Pfizer Incorporated is a global pharmaceutical company, ranking number one insales in the world. The company is based in New York City. It produces Lipitor,the oral antifungal medication, the antibiotic Zithromax, Viagra for erectile

dysfunction, and the anti-inflammatory Celebrex. Pfizer was established inBelgium, Brazil, Canada, Cuba, Iran, Mexico, Panama, Puerto Rico, Turkey andthe United Kingdom.

Reason behind selecting Bangladesh for

development of Pharmaceutical industry. Why????


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The Environment Investigation

The secret behind the success is that Pfizer follows some criteria in operation of thebusiness. These are,

> Maximizing near and long-term revenues.

> Establishing a lower and more flexible cost base somewhere in Asia.

> Creating smaller, more focused and more accountable operating areas.

> Engaging more productively with customers, patients, physicians and othercollaborators.

> Making Pfizer a great place to work.

By the end of the year 2007, Pfizer has changed the business process along with thechange of global business climate.

The growth trend of the industry has a major impact on the firms international

strategy.

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PoliticalAnalysis System of government:

The Constitution of Bangladesh was written in 1972 and has undergonefourteen amendments.

Government system is in a framework of a parliamentary representativedemocratic republic, whereby the Prime Minister of Bangladesh is the headof government, and of a multi-party system.

Executive power is exercised by the government. Legislative power is vestedin both the government and parliament.

Government policies:

FDI Policy for Pharmaceuticals sector: Export Policy

Political stability:

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Economic GDP Growth:

The World Bank in its latest report on global economic prospects has projected a steadyeconomic growth for Bangladesh in the next two years.

GDP in Bangladesh would increase to 6.1 per cent at the end of this year and 6.3 per cent by2012 from the last year's 5.8 per cent. The World Bank also placed Bangladesh at a betterposition in managing government deficit compared to the regional countries even with India.

Bangladesh's overall government deficit is more manageable at an estimated 2.5 per centcompared to the Maldives' deficit of 22.4%, and those in India (9.6 %), Sri Lanka (8 %), Pakistan(6.3 %), and Bhutan (6.1 %). In that case, increasing GDP rate will be very much profitable for

Pfizer.

FDI Inflow & Outflow:

The inflow of equity capital marked a 253.99% increase during the January-June period 2010,despite a significant fall in reinvested earnings and intra-company loans by 14.04% and 68.28%respectively during the same period, said the survey report on Foreign Direct Investment in

Bangladesh. For this reason any type of Pharmaceuticals Company will feel lucrative to take the advantage of

high FDI inflow of Bangladesh. In the consideration of FDI outflow, it is not increasing at all.So, FDI outflow will not be very much effective for Pfizer.

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Position of the country in world competitive ranking:

Purchasing Parity:

Per capita income:The per capita income crossed the $700 mark in the current fiscal year, mainly because of ahealthy GDP growth. The people of lower strata have got a share of the rise in the income assmall-scale industries have shown a rapid growth and employed the poor segment. The percapita income has reached $750 this fiscal year from $676 last year.

Living cost:Dhaka is currently ranked 253 overall, most expensive places in the world for expatriates to live,out of 282 international locations. Pfizer will target the Dhaka city for bigger segment ofconsumers. Though, Pfizers product is expensive for the consumers and they will be able to buy

it because they are already paying the higher living cost of the country.

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Social /Cultural Analysis Social and culture: Like other country Bangladesh also have some specific culture as

well as social believes.

Hierarchy:

Bangladesh is a hierarchical society.

People are respected because of their age and position.

Older people are naturally viewed as wise and are granted respect.

Bangladeshis expect the most senior male, by age or position, to make decisionsthat are in the best interest of the group. This is also valid in businesses, themajority of which will be family owned or run.

Language: Many people in Bangladesh speak English and Urdu. Bengali or Bangla(Bengali: , bala) is an eastern Indo-Aryan language

Religion: The majority of Bangladeshis are Muslim. Here the second religion isHindu, christen, Buddha. However, most still very much mix this with pre-Islam folk

traditions. Education: The educational system in Bangladesh is three-tiered and highly

subsidized.

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Pfizer is looking forward to spread their existing market in Bangladesh and to do that theywill surely have to read the business criteria, competitors, peoples nature and behavior,

which will surely going to affect their market situation in future.

Companies named SQUARE, BEXIMCO, SK+F, RENATA, ACI etc. are some of the wellstructured and leading pharmaceutical companies in Bangladesh and they do occupy a hugeshare in the market.

Human Resource management:

Firstly, huge amount of working resources and also their low cost may help their initialentry in the Bangladeshi market.

Secondly, they must choose suitable place and easy to access area to start their productionworks. In Bangladesh, PHIZER should find lands which are infertile lands to build theirfactory at a very low cost. Lands specially in the suburbs of Dhaka for example: Savar,Ashulia, Gazipur, Munshigonj, etc. do consist huge amount of lands which can be a goodoption for a company like PHIZER to start up their production work.

Technology:

As a developing country, Bangladesh does provide new technologies to work with, initiallyfor a pharmaceutical company like Pfizer. Initial tools needed for production, can be found ata very cheap cost in Bangladesh as many of them are produced locally with a low productioncost.

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The Country and Porters National Diamond

The findings show that Bangladesh has a preferable factors condition. Availability of cheap

and highly competent skilled labor, good company infrastructure makes the countrypreferable in this case. Even though the communication system is not very top class, but newtechnologies are yet to be established and lot of foreign bidders are willing to buy it. Foreigncompanies, who are already using these facilities, are getting benefited. This has beenreflected by the increasing market share gaining by the companies over time.

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Factor Conditions Cheap labor, good infrastructure, well transportation and

communication system, well human resource

management, skilled people

Demand Conditions High demand

Firm Strategy, Structure & rivary Fair

Government Helpful for foreign investors

Chance Good


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There are some different entry strategies available to Pfizer Inc. to consider.Strategies which are available are here:

FDIForeign Direct Investment Joint venture

Acquisition / Merger

The most appropriate one would be acquisition / merger because it seems to be

the easiest one to do and sure to be profitable. We are recommending acquisition /merger because it takes time to build up any state of the art infrastructure whichwill increase the basic cost of the product and investment. In Bangladesh, it takestime to build and making it function as there are so many restrictions.

On the other hand, an acquisition will give Pfizer the advantage of having anongoing structure from where Pfizer can run the minimal operational scale topenetrate the market. As Pfizer can have all the advantage with an existingmarket.

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Pfizer is the leading pharmaceutical company in the world. Now they aretrying to enter in the Bangladeshi market which is quite lucrative in some

extent. In this country the second largest pharmaceutical company namedGlaxoSmithcline is operation for over 15 years. Pfizer will facecompetition along with an open market. All Pfizer has to do is penetratethe market with the unique and necessary product line required for thiscountry/continent.

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Questions ?

Pfizer Final

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Transcript of Pfizer Final