Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Harvard Case Study Analysis

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Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution and Analysis


Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which used to offer Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis products withtheir own brand name. Its consumer circle consists of Original Devices Manufacturers (OEMs), who used to offer Samsung items with their own brand name. He repositioned Samsung as a worldwide brand and informed his divisional supervisors to understand marketing and its value.

Issue Statement

Samsung's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to include marketing efficiently is still a major challenge. Creating a consistent brand identity throughout the entire world and using marketing methods that best fits the local culture is no simple job. The M-net program analysis have been really handy in figuring out the high and less possible growth locations, but allocation of resources accordingly is not well received among the supervisors. There is no agreement among the hierarchy relating to the best matched future method.

Situational Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help efforts for building its brand name throughout the world was begun after presenting the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a cheap OEM to a high value-added item supplier. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Samsung can transform from a low end to a high end product provider. He knew that improvement can just be done through positioning Samsung as a business offering high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a potential assistance of its executives, Yun faced several marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was excessive high, the space was too larger and to fill this space with incorrect perceptions about marketing was rather difficult for Yun.

Along with it the item variety of the company was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to develop marketing spending plans for existing as well as for new products from the very beginning, and this would take a substantial time.

A huge shift would be required in current marketing expenditures to develop the Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution brand name. This would result in increased marketing expenditures for Samsung and might interrupt the administration relating to increased expenditures, as they were reluctant to marketing expenses previously and an abrupt big shiftwould make them disrupt. This might result in declining executive assistance for global marketing. In this circumstance, Yun faces a challenge for validating increased marketing expenditures by showing the long term value of huge marketing expenses.

Internal Analysis
SWOT Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is its ability to develop ingenious products at a constant rate. It major shows for the development and item developing of Samsung is that the business has actually gotten a lot of awards for its innovation and product style.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be quickly integrated with any kind of open source Os (OS) and software application. This offers Samsung an edge over Apple devices.

Samsung's capability to produce high end products at low cost of production is likewise among the major strength of Samsung as it allows the company to record more market by offering quality items with expense control.

Weak points

Samsung's weaknesses are hidden in the company's dependence on outsourcing software application for its devices due to company's inability in developing software, unlike Sony. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution also has low earnings margins as compare to Apple due to big difference in the rates of Apple and Samsung with a much lesser difference in quality.


Opportunities for Samsung depend on the growing Mobile phone market and the business's performance in the market. It can increase its market share and incomes from cell phone as the company is rather efficient in smart phone market. Samsung currently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would allow the business to increase its item portfolio with an increase in its wealth.


The dynamic industry environment of technology market pose a severe hazard on Samsung's survival and require the business to invest much of its revenues share on R&D in order to endure in the long run. The market saturation in industrialized nations i.e. saturation of mobile company is also a huge danger for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing


Samsung offers quality items and has a quite abundant portfolio which caters to various sections. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Ac system.
• Personal computers.
• Hard disk drives.
• Washer.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution utilizes both market competitive and market skimming prices techniques for its wide array of items. In competitive prices it adjusts the rate according to the competition in order to gain advantage, whereas, it uses market skimming technique where the item has an added worth and by selling a few products it can reach break-even.


It has among the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are prompt provided to the selling location/ provided to the consumers directly in case of online order.


It wasn't a well-known company beyond Korea till 1993. The management effort taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has gotten in the league of top 25 business in the world in simply 9 years. This is an impressive accomplishment in spite of the ongoing arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital advertisements are uses to create awareness about Samsung items.

Value Chain Analysis.

It's an analytical structure for identifying business activities that add worth or competitive benefit for the business.

Inbound Logistics.

For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its providers and develops an unified relationship with them and even reduced their payment cycles to improve this relationship further which includes value to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its items internal. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is preserving operation hubs worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main factors Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to communicate with them the worth and competitive benefit the item uses. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution marketing budget is constantly increasing because they started their repositioning worldwide and will continue to do so as they are constantly wanting to broaden and invest in high prospective growth markets. The budget is invested in events, print and media ads, public relations etc.

Samsung put their customers at the leading and continuously strive to deliver unmatchable client service requirements. By adding a direct assistance line to call them 24 hours they have actually even more increased the added value of Samsung service.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution has actually diversified market segmentation, based upon its provision of vast array of items to a great deal of consumers. Samsung target consumer sections can be divided into 3 categories i.e. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device options.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help geographic division is based upon two criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items provided to Urban along with Rural areas of the country. The Samsung is likewise growing its worldwide existence and the company's versatility in locating its plants encourages worldwide expansion of Samsung.


Samsung produces items that can be utilized by both males and women. The target clients for Samsung IT and mobile communication products have an age variety of 18-65 with majority at a young or recently wed life cycle stage. Apart from it, Samsung Consumer Electronic devices are targeted to a consumer sector with an age range of 25-65.


The psychographic segmentation of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are primarily upper middle, middle and working class consumers, as Samsung offer items like cellular phone not much more affordable i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality items to middle level customers at a slightly high rate than others targeting the exact same segment.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis bulk target customers have special behavioural attributes. It has consumers with an enthusiastic, stylish and figured out personality with moderate level of loyalty towards the brand name. Its customers have some degree of shift towards other popular brand names i.e. Apple. Most of Samsun clients want quality along with expense control. Because of its moderate prices with a level of quality, they are brought in towards Samsung.

Quantitative analysis.

Sales of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is currently manufacturing but long gone are those days when excellent items were offering themselves. Kim has currently started to enhance the marketing activities of Samsung and really quickly it will become one of its core strength like producing if not better.



Samsung runs designs, makes and offer a vast portfolio of consumer electronic devices. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality items. So, the answer is yes.


As, said previously that Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis operates in an extremely competitive environment, which implies all the business have similar items. So, the response for rarity is no.


Due to the nature of the industry, it is really easy for competitors to comprehend the performance of the products and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents each year, but the advantage is extremely short-term in this industry.


Chairman Lee has completely turnaround Samsung, from going almost bankrupt during the Asian monetary crisis of 1997 to the leading 25 business worldwide. Definitely yes there is proper organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread nearly in every country worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. It faces some political pressures in less industrialized nations where law and order scenario is not great. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help operations.


Buying power of consumers is crucial for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. supply growth chances, whereas, due to recession even the clients of industrialized nations suffer terribly. It is very essential for the company to keep an eye on the ongoing financial scenario of the country before going into the market.


International companies have to deal with various social and cultural problems during its operations in a foreign nation. Samsung has actually also faced numerous concerns but have embraced to the regional environments of most of the countries extremely well. It has actually tailored its items, practices, policies and so on appropriately in order to succeed.


With a yearly expense of 2.4 billion dollars in Research & Development, and with consistent ingenious item launches, Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help is one of the leading innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Samsung has increased to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being an international business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. It has to study or hire a regional law expert before starting its operations in a particular nation.


With the increasing awareness among customers about the environmental & ethical offenses of business, Samsung has to ensure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the consequences can be extremely severe. On the other hand it needs to do some Business Social Responsibility practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Threat of substitution for Samsung's each product classification is quite considerable. Factors for high risk of alternative for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help Mobile phone include the existence of high number of providers and Market saturation in industrialized nations, which make the expense of changing for customers practically zero. Along with it, Samsung printing options items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The major reason behind this is the approach of market saturation in different number of product classifications, forcing Samsung to present more ingenious features in existing products and brand-new ingenious products to preserve its development. The major rivals for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis has a large supply chain including about 2700 providers throughout the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. These substantial orders enable Samsung to work out prices with its suppliers. Due to incapability of Samsung to construct its own software, it has to outsource its software advancement to Google, which becomes a possible provider of software for Samsung, resulting in high bargaining power of Google. In most of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has a power to negotiate rates, however it supply considerable prices to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the product categories likewise make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its items at a higher price than much of its competitors, due to high end quality item and a reasonable brand name image.

Threat of New Entrants:

Danger of new entrants for Samsung is quite low. Among the major aspect for low threat of new entrants is the high competitors in the market. The requirement of substantial amount of capital to go into in the market is likewise among the potential barrier to entry. Along with it, requirement of big knowledge and research and development expenditures for survival in the industry likewise make new entrants hesitant to go into in the marketplace. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of providers force the players in the market to charge as low costs as possible and this can just be accomplished by production effectiveness. New firms, in majority cases, do not have the production efficiency, thus increasing the threats for entrance in the innovation industry.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis had a substantial R&D costs on all of its product categories which allow the business to make potential earnings from sales of nearly all of its products.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of international market share, amongst 8 various product classifications. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its incomes from chips was growing faster than Intel and has grown close to the profits levels of Intel, as given up the case Display 2.

Along with the chips Samsung mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The major reson behind Samsung's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality cell phones.

Samsung was also profiting from increasing market share of high-end LCDs as given up case Exhibit 3. The significant reason, making the business make it possible for to obtain the chance is its mass production at low expense. Sony was the biggest rival for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help in LCD market, however, it had likewise started joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competition for Samsung.

Porter's Competitive Strategy

Low Expense Leadership strategy of porter is totally implemented by Samsung the way they achieve economies of scale by strengthening their core competencies of manufacturing. They always bring something new and ingenious whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help would develop a brand-new brand image by targeting the younger generation of the specific nation. As, especially smart phones of Samsung are incredibly popular among the more youthful market.


1. It is the very best method to construct Customer Life time Value (CLV) by developing a long-lasting relationship with customers. Develop loyalty through providing worth and profit for long-lasting, as research study has actually showed it is more affordable to maintain present customers than to bring in new ones.
2. Another pro of this option is that word of mouth spread more quickly among more youthful people and which in turn will bring in new consumers for my items.


1. Old clients who were related to Samsung prior to may not like this brand-new image the company is trying to portray.
2 It will sustain more expenses to rearrange some items and it may not even bring success as the trends change very quickly among the younger group.

Alternative solution 2.

Samsung has actually made manufacturing its core proficiency for the many part of their organisation and due to which its managers are not scared to fully get out of their convenience zone. It would be done by arranging training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get benched. Marketing environment must be developed internally first as genuine marketing begins inside the corporation.


1. Its pro will be that all the marketing technique advocates will come out and likewise the opposite ones.


2. Its con can create a very unhealthy environment in the work environment, as people often withstand modification since they fear it.

Determine the very best option

Very first option is the best as it plainly has more pros because once a Consumer Lifetime Value is constructed the company will make money from it till that client lives and has buying power as well. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing old age people. Nevertheless, Samsung's primary goal is to produce commitment among its clients and make them repurchase it from them and even buy their different items also.

Execution Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations achievable and reasonable.
• A group including finest marketing and sales specialists ought to be put together, and both views should be taken into account prior to securing the resources required to execute the strategy.
• Thorough interaction of the plan ought to be done as it is really essential for everyone to be on the very same page to make it work.
• Tasks and timelines ought to be develop and interacted appropriately to each individual accountable.
• The manager should use a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The manager must keep an eye on and keep a constant examine the overall and specific efficiency.
Due to the fact that any new pattern or policy might come in due to which all the things currently planned have actually to be changed, • Everyone should be willing to adapt midway. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager need to communicate the outcomes and if successful need to commemorate with the group.


The M-net program exposed compelling analysis about the low and high development possible areas and how much marketing spending plan ought to be assigned accordingly. This change the budget allowance of various nations and lots of managers were dissatisfied and argued but the analysis done by the program was precise and showed figures like The United States and Canada and Russia development potential merited a 35% allocation while they were receiving 45%. Whereas, China and Europe should be getting 42% however were instead offered 31%. It truly assisted to relatively disperse the resources and capture more consumers by spending more on ads on the high development potential areas of the world.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is a top 25 company on the planet now and plans to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and ingenious practices have propelled them to brand-new heights however for them its' just the start and they wish to be among the top 3 brand names worldwide. They totally turnaround from nearly declaring bankruptcy during the Asian Financial Crisis to a world renowned brand, known for quality and development. Their worth chain and their core proficiency their manufacturing ability, along-with worldwide brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts ought to be directed towards more youthful market amid the internal arguments about marketing and should create Customer Lifetime Worth as it will not only provide benefits now however will continue to reap it till the consumer lifetime. As the cost of maintaining the consumer is much cheaper than drawing in a new one.