MGT/521
June 8, 2011
Professor Craig Clark
Pfizer 's SWOT Analysis
Pfizer has come a long way since its modest beginnings in 1849, when it founded by cousins, Charles Pfizer and Charles Erhart and their sole product was citric acid, which would lead to the development of penicillin. Today Pfizer is the world’s largest research-based pharmaceutical company. The company consists of three Strategic Business Units: Health Care, Animal Health, and Consumer Health Care. Pfizer’s portfolio consists of 168 prescription products which is a big accomplishment since its inception 162 years ago (pfizer.com, Janu). However, as a mutual fund’s manager, one must look at various analytical tools and resources in deciding whether to invest in Pfizer stock. One of the resources chosen is a SWOT analysis, which acronyms stand for strengths, weaknesses, opportunities, and threats. A SWOT analyzes internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can affect a company (blogspot.com, Apri). All four quadrants of the SWOT matrix will be populated with distinguishing factors unique to the company and examined to determine if investing in Pfizer is a sound decision.
Strengths
Largest pharmaceutical company
Marketing
Research and Development
Financial Resources
Sales force/human resources Weaknesses
Integration of large acquisitions
Dependence on Research & Development
Geographic presence
Patent expirations
Opportunities
Research & Development Pipeline
Global market expansion
Strategic alliance, acquisitions, and mergers
Generics
Threats
Competition
Economic trends
Expiring patents
Generic
Figure 1: SWOT Analysis Template. (swotanalysistemplate.com, May)
The key strengths that has resulted in success for Pfizer, and which distinguish it from its competitors are size, marketing, research and development, financial resources and sales. There are benefits from economies of scale such
References: Pfizer. (March 2010). Annual Review 2010. Retrieved from http://www.pfizer.com/files/annualreport/2010/annual/review2010.pdf Saporito, B. (January 17, 2011). Where the Jobs Are. TIME, 177(2), 28. blogspot.com. (April 2010). SWOT Analysis/TOWS Analysis. Retrieved from http://realswotanalysis.blogspot.com/2010_04_01_archive.html businessweek.com. (September 2006). A Healty Prognosis for Pfizer. Retrieved from www.businessweek.com/investor/content/Sep2006/pi20060912_393574.htm forbes.com. (May 2002). Solving The Drug Patent Problem. Retrieved from http://www.forbes.com/2002/05/02/0502patents.html pfizer.com. (January 2011). Pfizer Products. Retrieved from http://www.pfizer.com/products/rx/prescriptions.jsp pfizer.com. (July 2005). Mission Statement. Retrieved from http://pfizer.com/home/ swotanalysistemplate.com. (May 2011). SWOT Analysis Template. Retrieved from http://swotanalysistemplate.com/