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EXTERNAL ENVIRONMENT

Report
Submitted by
Amelita Artigas Fernandez
External Environment Analysis
Opportunities Weight Rank Weighted
Score
1. Strategic agreements with other pharmaceutical 0.09 3 0.27
companies and organizations to boost its research.
License agreement with: Medarex, Puma Biotechnology,
Eisai and etc.

2. Increasing awareness about healthcare needs. 0.09 3 0.27


Scientific evidence that shows ones lifestyles play a huge
part in how healthy one is. From what he eats and drinks,
to how much exercise he takes, and whether he smokes
or takes drugs, all will affect his health, not only in terms
of life expectancy, but how long he can expect to live
without experiencing chronic disease.
3. Global penetration through mergers and acquisitions 0.07 4 0.28
Acquisition of: War-Lambert 2000, Pharmacia 2009,
Wyeth 2010, King Pharma 2010 and Hospira 2015.
External Environment Analysis
Opportunities Weight Rank Weighted
Score
4. Increasing demand for quality health care solutions 0.07 3 0.21
Medical Cities focused on how to build healthcare
facilities that will take care of the growing population in
emerging markets. As populations continue to grow and
regions evolve, the demand for quality healthcare is
increasing and the way care is delivered requires
change.
5.Funding available to facilitate product/company. 0.03 3 0.09
Pfizer's Global Health Grants and Investments Program,
funded by the Pfizer Foundation, seeks to address the
challenges of improving healthcare delivery around the
world.
External Environment Analysis
Opportunities Weight Rank Weighted
Score
6.Funding available to facilitate product/company. 0.02 3 0.06
Pfizer's Global Health Grants and Investments
Program, funded by the Pfizer Foundation, seeks to
address the challenges of improving healthcare
delivery around the world.

7.Acquisition (Wyeth) and in-licensing/co-development 0.07 4 0.28


opportunities. Acquisition of: War-Lambert 2000,
Pharmacia 2009, Wyeth 2010, King Pharma 2010 and
Hospira 2015.
External Environment Analysis
Opportunities Weight Rank Weighted
Score
8.Expansion to biological market. Acquisition of Prevenar 0.05 3 0.15
13 on 2010.

9.E-commerce. E-commerce (electronic commerce or EC) 0.03 2 0.06


is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network,
primarily the internet. EC) is the buying and selling of
goods and services, or the transmitting of funds or
data, over an electronic network, primarily the
internet
External Environment Analysis
Opportunities Weight Rank Weighted
Score
10. Increasing number of metabolic diseases at a younger age. 0.043 4 0.16
208,000 children and adolescents estimated to have diabetes,
2016.
THREATS
Threats
Threats Weight Rank Weighted
Score

1. Risk of low adherence of patient to new product. 2003 0.04 2 0.08


report on medication adherence,1 the World Health
Organization (WHO), Among patients with chronic illness,
approximately 50% do not take medications as prescribed.
2. Regulatory environment become more stringent. 0.05 3 0.15
Since Pfizer operates globally and over 60% of its total
revenues are from non-US markets, its exposed to
geographic risk. Changes in the regulatory
environment in just one country will not really affect
the business. However, the stringency of the
regulatory environment in almost all its markets will
surely be a great risk.
THREATS
Weight Rank Weighted
Threats Score

3.Economic slowdown. 0.03 2 0.06

A lot of countries have experienced economic slowdown, like China,


India, U.S. etc. All for different reasons. This recession consequently
resulted to fall of many businesses. The many effects of an economy in
recession are interest rates falling, profits plunging, unemployment rates
rising, and the stock market becoming unstable.

4.Increase market competition. There are over 25 big international 0.06 3 0.18

pharmaceutical companies that exist today. Each of them has its own
share of the market.
THREATS
Threats Weight Rank Weigh
ted
Score
5. Losing of patent individually by focusing only one product. 0.08 3 0.24

Pfizer (PFE) is struggling to revive its top line growth. With the loss of patent
protection for its flagship drug, Lipitor, Pfizers revenue fell to $48.8 billion
in 2015, compared to $67 billion in 2010. Lipitor was a major contributor for
Pfizer, adding $10.7 billion in revenue to its top line in 2010. However,
following its generic availability, the drugs revenue fell to $1.9 billion in
2015.
6. Loss of patent protection of major products. 0.07 4 0.27

Loss of patent protection for its flagship drug, Lipitor, Pfizers revenue fell to
$48.8 billion in 2015.
THREATS
Threats Weight Rank Weigh
ted
Score
7. Risk of Eisai terminating long standing partnership. 0.04 3 0.12
Pfizer agrees with Eisai to provide Aricept to patients suffering from Alzheimers
disease. But, Japanese drug maker Eisai Co. claims it has the right to terminate an
Alzheimer's drug partnership with Pfizer Inc. once Pfizer closes its purchase of
Wyeth.

8.Outstanding competition of regional market. 0.03 2 0.06

There are over 25 big international pharmaceutical companies that exist today.

9.Negatively publicized by sued by their customer. 2002, Pfizer Paid $49 Million 0.04 4 0.15
fine based on claims that it defrauded the Medicaid program and overcharge
consumers for Lipitor.
THREATS
Weight Rank Weighted
Threats
Score

Negatively publicized by sued by their customer. 2002, Pfizer Paid $49 Million fine based 0.04 4 0.15
on claims that it defrauded the Medicaid program and overcharge consumers for Lipitor.

10 . Healthcare reform policy 0.03 3 0.09


A lot of countries have experienced economic slowdown, like China, India, U.S. etc. All
for different reasons. This recession consequently resulted to fall of many businesses. The
many effects of an economy in recession are interest rates falling, profits plunging,
unemployment rates rising, and the stock market becoming unstable.
TOTAL 1 2.88

Pfizer got a total score of 2.88 for its External Factor Evaluation (EFE) matrix,
an above average response to its existing opportunities and threats in the
industry. The current strategies that the company is using is satisfactory but
these will need to be improved for Pfizer to keep the top position among its
competitors.

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