Merk Case analysis

Merck case analysis
Follow this format, provide *brief* answers. 1. External (use PESTEL framework) - What are Merck's opportunities and threats? 2. Internal (use VRIO framework)- what are Merck's strengths & weaknesses? 3. What is Merck's performance trend? 4. What strategic actions can Merck take to gain and sustain a competitive advantage in the pharmaceutical industry and why?
1. Merck’s opportunities and threats PESTEL FRAMEWORK
- Threats
 A lot of competition from piers
 Expiring patents
 Outdated technology
 Recall of drugs such as (VIOXX) can hurt the company brand
- Opportunities
 Broad-based medical innovation, technologies and businesses across the spectrum of health care
 They are entering health market for undeveloped poor countries
 Global company
 Brand is recognized worldwide

Pestel framework
Political Factors
- Corporate responsible company
- Political factors can cause issues with patented drugs
- Who is in office can affect the growth of a pharmaceutical company specially here in the USA
- Government can limit the price the company wants to put on their drugs (price needs to be reasonable
Economic Factors
- Company growth, inflation rates, can affect Merck’s performance
- Company globalization is a major opportunity for Merck
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Social Factors
- Very ethical company
- Operate openly and they try to be a company full of integrity
- Safeguard individual privacy through a global privacy program
Technological Factors
- Leading biotech innovator
- Ahead of other companies in developing new drugs, try to keep that biotech edge
- Billions of dollars are spent yearly to discover new drugs and treatments.
- Research and Technology company
Environmental Factors
- Anti-dumping laws are enforced
Legal Factors
- Company complies with all applicable laws and regulations globally
- Anti- dumping laws

2.internal (Strengths & weaknesses) VRIO Analysis
Strengths
- The brand MERCK is very