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

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


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is a well-known global brand in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 handle a great deal of item categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic items. Historically, the business's core clients consist of the Original Devices Manufacturers (OEMs), which utilized to sell Business items withtheir own brand name. Till early 1990s, the core proficiency of Enterprise lie in its low price offerings than its competitors by making existing items at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis items with their own brand name. Business was not merely known outside Korea. There were also no or little interest in building the brand worldwide. Marketing spending plan was managed by production department with a focal point on providing cheap products.During the 1997 Asian Financial Crisis the company practically got bankrupt, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable business in the world. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Enterprise as a global brand name and informed his divisional supervisors to comprehend marketing and its value. Now their objective is to arrive 10 by 2005.

Issue Statement

Org's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing effectively is still a significant difficulty. Producing a constant brand name identity throughout the entire world and utilizing marketing strategies that best fits the local culture is no easy task. The M-net program analysis have actually been actually useful in figuring out the high and less possible growth areas, but allocation of resources appropriately is not well received amongst the managers. There is no consensus among the hierarchy regarding the very best matched future method.
Executive Summary
Situational Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help efforts for constructing its trademark name across the world was begun after presenting the "new management effort" by Chairman Lee in 1993. The objective was to transform Corp from an inexpensive OEM to a high value-added product supplier. To make the vision of Enterprise a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Org can transform from a low end to a high-end product supplier. He understood that transformation can only be done through positioning Company as a business offering high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to construct Organization brand name, with a prospective assistance of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the present marketing requirement was excessive high, the gap was too larger and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.

As stated above, marketing focus was really low in previous practices, for that reason there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. Together with it the item series of the business was increasing with the ripening of new item concepts by the R&D sector of Org. Yun had an obstacle to carry out marketing planning and to develop marketing budget plans for existing as well as for brand-new items from the very start, and this would take a big time.

A substantial shift would be required in present marketing expenses to develop the Corp brand. This would result in increased marketing expenditures for Company and might interrupt the administration concerning increased costs, as they were unwilling to marketing expenses formerly and a sudden big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help strengths lie in its big item portfolio. Company has largest number of patents in the market with overall number of 15499 patents given 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 innovative products at a continuous rate. It significant proves for the innovation and item creating of Company is that the business has actually received many awards for its innovation and product design.

Unlike Apple and other rivals, Organization is focused on producing devices which can be easily incorporated with any kind of open source Operating System (OS) and software. This supplies Organization an edge over Apple devices.
Porter's 5 Forces Analysis
Company's capability to produce luxury products at low cost of production is likewise one of the significant strength of Organization as it allows the company to catch more market by providing quality items with cost control.


Organization's weak points are hidden in the company's reliance on outsourcing software for its gadgets due to company's inability in developing software application, unlike Sony. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution likewise has low earnings margins as compare to Apple due to huge difference in the costs of Apple and Company with a much lower difference in quality.


Opportunities for Enterprise depend on the growing Mobile phone market and the company's effectiveness in the market. It can increase its market share and earnings from cellular phone as the company is quite efficient in cellular phone market. Corp currently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Business can move towards acquisitions to obtain patents. It would allow the business to increase its item portfolio with a boost in its wealth.


The dynamic market environment of technology market pose a serious risk on Company's survival and force the business to spend much of its incomes share on R&D in order to survive in the long run. The marketplace saturation in developed countries i.e. saturation of mobile business is likewise a big threat for the company's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Company uses quality items and has a rather rich portfolio which caters to different sectors. LCD and mobile phones are the most significant items of Org, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Smart phone.
• Ac system.
• Computer.
• Hard disk drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


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


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

Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid product ads, social promotion and digital ads are uses to develop awareness about Corporation items.

Value Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and efficient supply chain network and has over 2700 providers throughout various markets around the globe. Almost 80% of which is based in Asia and the staying worldwide. For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its providers and develops an unified relationship with them and even minimized their payment cycles to improve this relationship even more which includes worth to their chain network.


Venture's core proficiency is its mass producing it produces 90% of its products internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation hubs worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main reasons Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has the ability to compete with Apple. Business's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Company.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the product offers. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution marketing spending plan is continuously increasing since they began their repositioning globally and will continue to do so as they are continually seeking to broaden and invest in high possible growth markets. The budget plan is invested in events, print and media advertisements, public relations and so on.

Corp put their consumers at the leading and continuously strive to deliver unmatchable customer service requirements. By including a direct assistance line to call them 24 hours they have even more increased the added worth of Enterprise service.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has actually diversified market division, based upon its provision of vast array of items to large number of customers. Enterprise target client segments can be divided into 3 categories i.e. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis IT and Mobile Communications, Venture Customer Electronic Devices and Organization Gadget services.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis geographical division is based upon two requirements i.e. region and density. Corp serves about 80 countries worldwide with its items supplied to Urban as well as Rural areas of the nation. The Company is likewise growing its worldwide existence and the business's flexibility in locating its plants encourages worldwide expansion of Corp.


The market segmentation of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Enterprise produces items that can be used by both males and women. The target consumers for Corporation IT and mobile communication items have an age variety of 18-65 with majority at a young or newly married life cycle phase. They are primarily students, employees and professionals. Apart from it, Venture Consumer Electronics are targeted to a consumer segment with an age range of 25-65. They are mainly experts and employees. However Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis Gadget Solutions are targeted at trainees, staff members and professionals with an age variety of 25-65.


The psychographic segmentation of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis s based upon the social class and the life style of the consumer. Business target clients on the basis of social class are generally upper middle, middle and working class customers, as Company sell products like mobile phone not much cheaper i.e. Motorola as well as not much costly i.e. Apple. It offers quality products to middle level customers at a slightly high price than others targeting the exact same section.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution majority target consumers have special behavioural qualities. They are attracted towards Org since of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Venture has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually likewise decreased its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Revenues/ sales are increasing however net earnings is not increasing appropriately due to the fact that of the high overhead cost. New expansions and working with's were the primary reason of the increase in the overhead expenses, with china presently not providing any profit to Corporation, but there is a lot capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and create a worldwide brand picture of the business. Whereas, the core strength of the business is presently manufacturing but long gone are those days when good products were offering themselves. In the existing age marketing is extremely essential and companies can not be successful without it. Kim has already started to enhance the marketing activities of Org and very soon it will become one of its core strength like producing if not much better.



Company runs designs, manufactures and offer a large portfolio of consumer electronics. It operates in a very competitive environment and has actually effectively placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution operates in a highly competitive environment, which means all the business have similar products. The answer for rarity is no.


Due to the nature of the industry, it is very easy for competitors to comprehend the functionality of the products and easily make their own models. Yes, Corp is just behind IBM in signing up new patents yearly, however the benefit is really short-term in this market.


Chairman Lee has entirely turnaround Company, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the top 25 business worldwide. Absolutely yes there appertains company in the company and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


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


Buying power of consumers is vital for business like Org to succeed and grow. Emerging markets like India, middle-eastern nations and so on offer growth chances, whereas, due to economic crisis even the consumers of developed nations suffer terribly. Thus it is really essential for the business to keep an eye on the ongoing economic scenario of the nation prior to getting in the market.


Multinational companies have to face numerous social and cultural problems throughout its operations in a foreign country. Company has actually likewise faced many issues but have actually adopted to the regional environments of most of the countries extremely well. It has actually customized its items, practices, policies etc. appropriately in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with consistent ingenious product launches, Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution is among the top ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Corp has actually risen to the no 25 of the top effective business of the world.


Each country has their own laws and policies, being a multinational company Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. So, it has to study or employ a regional law specialist before beginning its operations in a specific nation.


With the rising awareness among consumers about the ethical & environmental offenses of companies, Business needs to make sure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not appropriate and in some countries the consequences can be very extreme. On the other hand it needs to do some Corporate Social Responsibility practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Hazard of substitution for Corporation's each item classification is quite considerable. Factors for high threat of substitution 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 developed nations, which make the cost of switching for consumers almost no. Along with it, Corporation printing solutions items are threatened by the increasing attraction of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Corp and its close rivals is intense. The major factor behind this is the approach of market saturation in numerous number of product classifications, requiring Organization to present more ingenious functions in existing items and brand-new ingenious items to maintain its development. The significant competitors for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution has a vast supply chain including about 2700 suppliers throughout the world.( Business Sustainability Report, 2016) Supplier's bargaining power for Corporation is low as Company runs economies of scale and its orders are of possible size and worth. These substantial orders make it possible for Organization to negotiate costs with its suppliers. Due to incapability of Organization to develop its own software application, it has to outsource its software application development to Google, which ends up being a prospective supplier of software for Organization, resulting in high bargaining power of Google. In many of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has a power to work out rates, but it supply substantial rates to its providers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Negotiating power of buyers for various variety of item categories of Business is intense. Among the element resulting in the intense bargaining power is the accessibility of large number of rivals in nearly each product classification i.e. competitors of Org Smartphone, with a really little differentiation. The high availability of providers of Smartphones with minimum distinction, make the switching expense for purchasers almost no, for this reason increasing the bargaining power of purchasers. Market saturation in most of the product categories likewise make the bargaining power of buyers more extreme in for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis. In spite of igh bargaining power Company is rather efficient in offering its items at a greater price than much of its rivals, due to high end quality item and a fair brand image.

Threat of New Entrants:

Threat of brand-new entrants for Org is quite low. One of the significant aspect for low risk of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to go into in the market is likewise one of the prospective barrier to entry. Along with it, requirement of big competence and research and development expenditures for survival in the industry also make brand-new entrants hesitant to enter in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of providers force the players in the industry to charge as low rates as possible and this can only be attained by production effectiveness. New companies, in majority cases, do not have the production performance, for this reason increasing the risks for entrance in the innovation market.

Competitive Analysis

Organization's high product diversification supplies it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution had a huge R&D spending on all of its product classifications which enable the company to make possible income from sales of practically all of its products.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in regards to international market share, amongst 8 various product categories. Company was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Enterprise earnings from chips was less than Intel however its profits from chips was growing much faster than Intel and has grown close to the income levels of Intel, as given in the case Exhibit 2.

Along with the chips Org mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Venture's high development despite of higher costs than Nokia and Motorola was the business's high-end quality mobile phone.

Venture was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Display 3. The significant factor, making the business enable 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, nevertheless, it had actually likewise begun joint venture with Organization in 2003 for LCD making, minimizing the competitors for Organization.

Porter's Competitive Strategy

Low Expense Management technique of porter is fully executed by Company the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something new and ingenious whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis would develop a new brand image by targeting the younger generation of the specific country. As, particularly smart phones of Org are incredibly popular among the younger group.


1. It is the best technique to develop Customer Life time Worth (CLV) by producing a long-term relationship with clients. Construct loyalty through providing value and profit for long-lasting, as research study has revealed it is much cheaper to keep present consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger individuals and which in turn will bring in new consumers for my items.


1. Old consumers who were related to Corporation prior to might not like this brand-new image the company is trying to portray.
2 It will sustain further expenditures to reposition some items and it may not even bring success as the patterns alter very quickly among the more youthful group.

Alternative solution 2.

Corporation has actually made producing its core proficiency for the many part of their company and due to which its managers are not afraid to totally get out of their convenience zone. It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get demoted. Marketing environment ought to be produced internally initially as real marketing starts inside the corporation.


1. Its pro will be that all the marketing method fans will come out and also the opposite ones.


2. Its con can produce an extremely unhealthy environment in the workplace, as people typically withstand change since they fear it.

Determine the best option

Alternative is the best as it clearly has more pros due to the fact that as soon as a Client Life time Worth is built the business will profit from it till that consumer is alive and has acquiring power. Plus, our target consumers are the younger generation which are bound to live longer than the present aging people. Business's primary objective is to develop loyalty amongst its clients and make them repurchase it from them and even buy their different products.

Execution Plan

• Targeting younger generation through social marketing, producing a relate to them like Pepsi do with music. And set the expectations realistic and possible.
• A team including best marketing and sales professionals should be assemble, and both views ought to be considered prior to securing the resources needed to execute the strategy.
• Thorough communication of the strategy need to be done as it is very crucial for everybody to be on the same page to make it work.
• Jobs and timelines ought to be develop and communicated appropriately to each individual responsible.
• The manager ought to utilize a dashboard which shows the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to monitor and keep a consistent check on the general and specific efficiency.
• Everyone ought to be willing to adapt midway due to the fact that any new trend or policy might come in due to which all the important things currently planned have to be changed. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager need to interact the results and if successful ought to celebrate with the group.

Spending plan

The M-net program exposed compelling analysis about the high and low growth possible locations and how much advertising budget need to be designated appropriately. This change the budget allocation of many managers and various nations were dissatisfied and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth potential merited a 35% allocation while they were getting 45%. Whereas, China and Europe should be receiving 42% but were rather provided 31%. It actually assisted to fairly disperse the resources and capture more customers by investing more on ads on the high growth potential areas of the world.

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution is a top 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and innovative practices have actually moved them to brand-new heights but for them its' only the start and they want to be among the leading 3 brand names in the world. They entirely turn-around from almost declaring bankruptcy throughout the Asian Financial Crisis to a world popular brand name, understood for quality and development. Their worth chain and their core competency their manufacturing capability, along-with worldwide brand name image structure have 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 only increase even more in the future. Their marketing efforts must be directed towards younger demographic amidst the internal arguments about marketing and should create Client Life time Value as it will not only provide advantages now but will continue to enjoy it till the client lifetime. As the expense of keeping the consumer is much cheaper than drawing in a brand-new one.