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 & Analysis


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution is a popular international 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 large number of product categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which utilized to sell Company items withtheir own trademark name. Till early 1990s, the core proficiency of Organization lie in its low rate offerings than its competitors by manufacturing existing items at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who used to offer Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution products with their own brand name. Enterprise was not merely known outside Korea. There were also no or little interest in developing the trademark name globally. Marketing budget was managed by production department with a focal point on providing cheap products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most valuable business worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Org as a worldwide brand and informed his divisional managers to understand marketing and its significance. Now their goal is to reach the top 10 by 2005.

Problem Declaration

Corporation's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to integrate marketing successfully is still a major difficulty. Developing a constant brand identity throughout the whole world and using marketing methods that finest fits the local culture is no easy task. The M-net program analysis have been actually handy in identifying the high and less possible development locations, however allotment of resources accordingly is not well gotten amongst the supervisors. There is no agreement among the hierarchy regarding the best fit future technique.
Executive Summary
Situational Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis efforts for constructing its trademark name throughout the world was started after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to transform Organization from an inexpensive OEM to a high value-added product company. To make the vision of Business a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Venture can transform from a low end to a luxury item service provider. He understood that improvement can just be done through placing Corp as a company offering high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Organization brand name, with a possible assistance of its executives, Yun dealt with several marketing difficulties 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 exact same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was too much high, the space was too broader and to fill this gap with incorrect understandings about marketing was quite difficult for Yun.

Along with it the product variety of the company was increasing with the ripening of new product ideas by the R&D sector of Enterprise. Yun had an obstacle to carry out marketing planning and to create marketing budgets for existing as well as for new items from the very beginning, and this would take a big time.

A substantial shift would be required in current marketing expenses to develop the Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis brand name. This would lead to increased marketing expenditures for Enterprise and might disrupt the administration regarding increased expenses, as they hesitated to marketing expenses formerly and an unexpected big shiftwould make them disturb. This might result in decreasing executive support for international marketing. In this situation, Yun faces a challenge for justifying increased marketing expenditures by showing the long term worth of big marketing expenditures.

Internal Analysis
SWOT Analysis

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis strengths lie in its substantial product portfolio. Corporation has biggest number of patents in the industry with total number of 15499 patents granted in US( 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 development and product designing of Venture is that the business has gotten so many awards for its development and product design.

Unlike Apple and other competitors, Company is concentrated on producing devices which can be quickly incorporated with any kind of open source Operating System (OS) and software application. This supplies Venture an edge over Apple devices.
Porter's 5 Forces Analysis
Org's capability to produce luxury products at low cost of production is also one of the significant strength of Organization as it makes it possible for the company to capture more market by offering quality products with expense control.

Weak points

Business's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to company's failure in establishing software, unlike Sony. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution also has low revenue margins as compare to Apple due to substantial difference in the prices of Apple and Org with a much lower distinction in quality.


Opportunities for Enterprise lie in the growing Mobile phone market and the business's effectiveness in the market. It can increase its market share and incomes from cellular phone as the company is rather effective in smart phone market. Venture currently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to acquire patents. It would allow the company to increase its product portfolio with an increase in its wealth.


The dynamic market environment of technology industry position a severe hazard on Venture's survival and force the business to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is likewise a big danger for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Venture provides quality items and has a rather abundant portfolio which caters to various segments. LCD and mobile phones are the biggest products of Enterprise, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Smart phone.
• A/c.
• Desktop computer.
• Disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help uses both market competitive and market skimming prices techniques for its wide array of items. In competitive rates it changes the rate according to the competition in order to get advantage, whereas, it uses market skimming technique where the product has an included worth and by selling a few items it can reach break-even.


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

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

Worth Chain Analysis.

It's an analytical framework for identifying service activities that add value or competitive advantage for the company.

Incoming Logistics.

For its incoming 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 increase this relationship further which adds worth to their chain network.


Venture's core competency is its mass manufacturing it produces 90% of its items internal. Divided into 3 different divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronics. It is keeping operation centers worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main factors Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is able to take on Apple. Enterprise'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 claims, etc. on behalf of Venture.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to communicate with them the value and competitive advantage the item provides. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis marketing budget plan is continually on the rise given that they began their rearranging globally and will continue to do so as they are continually looking to expand and invest in high prospective growth markets. The budget plan is spent on events, print and media advertisements, public relations and so on.

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


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help has actually diversified market segmentation, based upon its arrangement of vast array of products to large number of consumers. Org target consumer sections can be divided into 3 classifications i.e. Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution IT and Mobile Communications, Corporation Customer Electronics and Enterprise Gadget solutions.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis geographical segmentation is based upon two criteria i.e. area and density. Org serves about 80 nations worldwide with its items supplied to Urban along with Rural areas of the country. The Company is likewise growing its international existence and the business's flexibility in finding its plants motivates international growth of Organization.


The market segmentation of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution is based upon gender, age, life-cycle phase and profession. Corporation produces products that can be utilized by both females and males. The target customers for Org IT and mobile communication items have an age variety of 18-65 with bulk at a young or newly married life cycle phase. They are mostly workers, experts and trainees. Apart from it, Business Consumer Electronic devices are targeted to a consumer segment with an age series of 25-65. They are primarily experts and employees. Nevertheless Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis Gadget Solutions are targeted at trainees, workers and specialists with an age series of 25-65.


The psychographic division of Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution s based upon the social class and the lifestyle of the customer. Organization target consumers on the basis of social class are generally upper middle, middle and working class clients, as Corporation offer items like cell phones not much less expensive i.e. Motorola as well as very little pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high cost than others targeting the exact same sector.


Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Solution bulk target customers have special behavioural attributes. They are drawn in towards Business because of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Organization has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has likewise lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Revenues/ sales are increasing but net earnings is not increasing appropriately since of the high overhead expense. New growths and employing's were the main reason of the boost in the overhead expenses, with china currently not offering any revenue to Venture, however there is a lot potential in the present market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the more youthful audience and produce a worldwide brand image of the business. Whereas, the core strength of the company is currently producing but long gone are those days when great items were offering themselves. In the present age marketing is very essential and business can not prosper without it. Kim has already started to reinforce the marketing activities of Corporation and very soon it will turn into one of its core strength like manufacturing if not better.



Business operates designs, makes and offer a huge portfolio of consumer electronic devices. It operates in an extremely competitive environment and has effectively placed itself as the maker of quality products. The answer is yes.


As, stated previously that Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis runs in an extremely competitive environment, which implies all the companies have similar products. So, the answer for rarity is no.


Due to the nature of the industry, it is really easy for rivals to comprehend the functionality of the products and easily make their own designs. Yes, Venture is only behind IBM in signing up new patents annually, however the advantage is really short-term in this market.


Chairman Lee has entirely turn-around Organization, from going almost bankrupt throughout the Asian financial crisis of 1997 to the leading 25 business on the planet. Absolutely yes there is proper organization in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


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


Purchasing power of consumers is vital for companies like Organization to be successful and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to economic crisis even the clients of industrialized nations suffer terribly. Thus it is very crucial for the business to keep an eye on the ongoing economic situation of the nation prior to going into the marketplace.


International business have to face numerous social and cultural concerns during its operations in a foreign country. Organization has likewise dealt with lots of problems however have actually embraced to the regional environments of the majority of the nations exceptionally well. It has customized its items, practices, policies and so on accordingly in order to be successful.


With an annual expense of 2.4 billion dollars in Research & Advancement, and with consistent innovative item launches, Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis is one of the top ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Corp has increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. So, it has to study or employ a local law specialist before starting its operations in a particular country.


With the increasing awareness amongst consumers about the ecological & ethical infractions of business, Business has to make sure that it follows all the safety guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the consequences can be extremely extreme. On the other hand it needs to do some Corporate Social Responsibility practices to reveal the locals that it appreciates their environment and people.

Porter's Five Forces

Risk of Substitution

Threat of replacement for Company's each item category is rather substantial. Factors for high risk of replacement for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis Smartphone include the existence of high number of providers and Market saturation in industrialized countries, which make the cost of changing for customers practically zero. Along with it, Corp printing services items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Business and its close competitors is intense. The major factor behind this is the method of market saturation in various number of item classifications, requiring Org to present more innovative features in existing items and new ingenious products to maintain its growth. Other factor for the extreme competition among the competitors is the little product distinction amongst the items. The prominent players in the innovation market are quite aware of the importance of R&D spending for their survival and are facing a race of marketing and R&D spending, to record the market. The significant competitors for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Analysis has a huge supply chain including about 2700 providers across the world.( Business Sustainability Report, 2016) Supplier's bargaining power for Corporation is low as Corporation runs economies of scale and its orders are of potential size and worth. These huge orders make it possible for Enterprise to negotiate prices with its providers. Due to incapability of Org to construct its own software application, it has to outsource its software application development to Google, which ends up being a prospective provider of software application for Org, 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 negotiate costs, but it supply considerable costs to its providers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Market saturation in most of the product classifications likewise make the bargaining power of buyers more extreme in for Corporation. In spite of igh bargaining power Company is quite capable of selling its products at a higher cost than much of its competitors, due to high end quality item and a fair brand name image.

Threat of New Entrants:

Threat of brand-new entrants for Business is quite low. Among the major element for low danger of brand-new entrants is the high competitors in the industry. The requirement of huge amount of capital to go into in the market is also one of the possible barrier to entry. In addition to it, requirement of huge expertise and research study and development expenditures for survival in the market also make new entrants reluctant to go into in the marketplace. Market saturation is likewise one of the barrier of entry in technology industry. High bargaining power of providers require the players in the industry to charge as low rates as possible and this can just be attained by production performance. New firms, in majority cases, do not have the production performance, hence increasing the threats for entryway in the innovation market.

Competitive Analysis

Corp's high product diversity supplies it distinction from its rivals. It is one of the 3 top brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on consumer electronic devices, Nokia on mobile phone and Intel on chips, Business had a huge R&D costs on all of its item categories which make it possible for the company to make potential earnings from sales of almost all of its items. (See Exhibition) However, due to the large product variety the company deals with high number of competitors.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of international market share, amongst 8 various item classifications. Organization was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Organization revenues from chips was less than Intel but its earnings from chips was growing faster than Intel and has actually grown close to the earnings levels of Intel, as provided in the case Exhibit 2.

Together with the chips Corporation mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Enterprise's cell phone's sales development was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales development. The significant reson behind Organization's high growth despite of greater prices than Nokia and Motorola was the business's high-end quality mobile phone.

Business was likewise reaping the benefits from increasing market share of high end LCDs as given up case Exhibition 3. The major reason, making the business enable to avail the chance is its mass production at low expense. Sony was the most significant competitor for Pfizer And The Distribution Of Pharmaceuticals In Europe In 2009 Case Study Help in LCD market, nevertheless, it had likewise started joint venture with Enterprise in 2003 for LCD producing, reducing the competition for Org.

Porter's Competitive Technique

Low Cost Management method of porter is fully carried out by Corporation the method they accomplish economies of scale by enhancing their core competencies of manufacturing. They constantly bring something ingenious and brand-new whether it's a service or a product.


Alternative Service 1

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


1. It is the best strategy to build Customer Life time Value (CLV) by producing a long-term relationship with clients. Build commitment through providing value and reap the benefits for long-term, as research has actually revealed it is more affordable to retain existing clients than to draw in new ones.
2. Another pro of this option is that word of mouth spread faster amongst younger people and which in turn will generate brand-new clients for my items.


1. Old customers who were connected with Org before may not like this brand-new image the business is attempting to represent.
2 It will sustain more costs to rearrange some items and it might not even bring success as the patterns change extremely rapidly amongst the younger demographic.

Alternative service 2.

It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment must be developed internally initially as genuine marketing starts inside the corporation.


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


2. Its con can develop a really unhealthy environment in the work environment, as people often withstand change because they fear it.

Identify the best alternative

Very first option is the best as it plainly has more pros since when a Consumer Life time Value is constructed the company will benefit from it till that consumer lives and has buying power also. Plus, our target clients are the younger generation which are bound to live longer than the present old age people. Nonetheless, Enterprise's primary goal is to produce loyalty among its consumers and make them redeemed it from them and even buy their various items too.

Application Strategy

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations sensible and achievable.
• A group including finest marketing and sales specialists must be put together, and both views need to be taken into consideration before protecting the resources required to implement the strategy.
• Thorough interaction of the strategy must be done as it is extremely essential for everybody to be on the very same page to make it work.
• Tasks and timelines must be build and interacted appropriately to each individual accountable.
• The manager need to utilize a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor need to keep track of and keep a consistent check on the overall and private efficiency.
• Everyone need to be willing to adapt midway because any brand-new trend or policy might can be found in due to which all the important things already prepared need to be adjusted. It's much better to have contingency plans already prepared.
• At the end of the project the manager should communicate the outcomes and if effective must commemorate with the team.

Budget plan

The M-net program exposed compelling analysis about the low and high growth prospective locations and just how much marketing budget plan should be designated appropriately. This change the spending plan allowance of different countries and numerous managers were dissatisfied and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia development prospective warranted a 35% allocation while they were getting 45%. Whereas, China and Europe should be getting 42% however were instead given 31%. It truly assisted to relatively distribute the resources and capture more customers by spending more on ads on the high development capacity regions of the world.

Its continuous investment in R&D and ingenious practices have actually propelled them to new heights however for them its' only the start and they desire to be among the leading 3 brands in the world. Their marketing efforts should be directed towards younger group amidst the internal arguments about marketing and should develop Customer Lifetime Value as it will not just give them benefits now but will continue to enjoy it till the consumer lifetime. As the expense of retaining the customer is much less expensive than bring in a brand-new one.