Pfizer

Microenvironments

Economic Factors

Strength

The long-awaited U.S. rebound is the primary factor propelling the world economy to growth of 3.5 per cent in 2004," said Kip Beckman, Principal Research Associate. Many Asian countries will gain a boost from expanding demand for information technology products. North America will generate real gross domestic product (GDP) growth of 4.3 per cent. On the other hand, the current interest rate is under the low position and good for global economic growth. The U.S. consumer is showing a willingness to spend and business investment has revived in response to rising profitability. We can detect that the U.S. currency is depreciating. It is good news for American export and to stimulate the growth of American economy. US dollar is at a inflation with a normal rate

The population of the world is keep growing at a certain rate, and the humanЎ¦s technology is very advanced. There is no specific law or policy against pharmacy.

Competitive Environment:

Industry Factor:

Market Growth:

The increase rate of the medicine market in 2003 is about 5-6%, which is less than the interest rate of 2002. In 2003, American pharmacy spend 33.2 billion US dollars to study new product, it has a 7.1% growth rate compare with the year before. The pharmacy market still has a positive growth rate.

Competitors

Strength

Over the next three years, the New York-based pharmaceutical titan will face patent expirations on five blockbuster drugs. (Carl Seiden) Three of them rank among the top 10 biggest-selling pills on the planet. In 2003, U.S. sales of these five pills accounted for $12.5 billion, or 28% of Pfizer's $45 billion in total revenue. According to researchers at Tufts University in 2001, when failures are figured in, it costs an average of $800 million to develop a single marketable medicine. The more capital a particular medicine company has, the more invents it can support. Therefore, a bigger medicine company can invest many researches and get higher successful opportunities than other smalls.

Weakness

After a drug will lose its patent protection, consumers will choose the low-priced generic versions quickly. Thus, the drug maker can see sales fall off a cliff in the future. Therefore, other competitors can also make the same medicine without invest cost.

Threat of Entry

Strength

In order to keep high profits continually, the better way is to invent new products immediately and to get its patent to prevent other competitorsЎ¦ joint. For the medicine industry, a patent of the particular is as import as its unique efficient effect. It is also a high risk for medicine industry to make a new medicine because nobodies know when they can discover a new prescription and win their patent earlier than others.

Strategic Alliances:

The American Pharmacy Alliance, it Ў§supplies prescription processing systems to more than 10,000 independent and small chain pharmacies throughout the United StatesЎЁ, and Ў§its projects helps community pharmacies significantly expand their value to patients, and to the health care delivery system, and at the same time help others in the industry achieve their pharmaceutical care and business goals.ЎЁ (Technology Partnership of the American Pharmacy Alliance) There are also some partnerships for a specific drug, such as Eli Lilly and Icos invent Cialis, Glaxo Smith Kline and Bayer produce Lecitra.

Mergers & Acquisitions

Strength

Thought merging other small companies, some national medical corporations can own their patent of prescription immediately. In the past, these corporations choose upfront payment and milestone payment to invest some biological companies. If those biological companies can invent some new efficient prescriptions, these national manufacturers can own the exclusive proxy.

Company Specific Factor:

Market Share:

The stock price of Pfizer has been exceeding far away from the average level of S&P 500. (Yahoo Finance)

Financial Analysis:

The current asset of Pfizer has increased 20%, and its total asset has increased 152% in 2003. Its total revenue has growth rate of 40 %.( Yahoo