Pharmaceutical Industry Analysis and Market Trends

This assignment provides a comprehensive overview of the pharmaceutical industry, including market trends, revenue projections, and key players such as Merck. It covers various aspects like mergers, innovation, clinical courses, GMP issues, and information feudalism. The document also includes references to online sources for further research. It's essential for students studying pharmacy or related fields to understand the complexities of this industry.

Merck Germany

Table of Contents
INTRODUCTION...........................................................................................................................1
OVERVIEW TO THE COMPANY................................................................................................1
METHODOLOGY..........................................................................................................................1
Data collection.............................................................................................................................1
Data analysis................................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Market Overview.........................................................................................................................2
Pharmaceutical sector..................................................................................................................2
Life Science Sector......................................................................................................................6
Cell Culture Media (definition)...................................................................................................7
Frameworks.................................................................................................................................9
PESTLE analyses.........................................................................................................................9
SWOT analyses.........................................................................................................................10
Porters five forces......................................................................................................................11
RESEARCH ANALYSIS..............................................................................................................11
Positioning of Merck.................................................................................................................11
Competitors................................................................................................................................12
Influence of emerging markets..................................................................................................13
Social media comparisons correlation.......................................................................................14
Price comparisons......................................................................................................................15
Pricing strategy (Cost leadership)..............................................................................................15
CONCLUSION..............................................................................................................................15
FINDINGS.....................................................................................................................................16
RECOMMENDATIONS...............................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Pharmaceutical sector has been the most important sector which is involved in providing
medical and healthcare related drugs and equipment to the customers. The present report makes a
comprehensive discussion regarding the position of Merck in the market (People at Merck,
2018). Merck is a pharmaceutical company involved in providing medicated drugs and
equipment to the customers. The report will discuss revenue and market share aspect at various
stages, such as, life science, pharmaceutical sector and cell culture media. In the end,
recommendation based on the findings will also be provided to Merck whose adoption can help
the organization to enhance its revenue and market share in comparison to available competitors
in the market.
OVERVIEW TO THE COMPANY
Merck group is a well-known German based company which operates at multinational level.
It commonly deals in multinational chemicals, pharmaceutical and life sciences products. The
company is headquartered in Darmstadt with approximately 50,000 employees operating in 70
countries all around the world. Merck was founded in 1668 and is renowned for being wold’s
oldest company which operates in pharmaceutical and chemical products. It is operating in
Africa, Asia, America, Oceania and Europe. The major research and development centres of the
company are situated at Beijing, Tokyo, Boston and Darmstadt.
Merck has been able to pioneer the commercial manufacturing of morphine in order to
expand in global market. In order to have continuous growth in the pharmaceutical and life
science sector, the company is involved in never ending research of drugs that can help in
treating the disease which are non-curable yet. It also helps in ensuring that the organization
come up with constant innovation techniques so as to remain competitive in the market. Merck
plays an important role in evolving the healthcare sector and come up with the medicines and
devices which are not yet offered by any other company in the market worldwide in the year
2013, Merck was involved in investing around €1183 million in its research and development
department so that innovation can be initiated in the company and ultimately attract large number
of customers towards it (Projected growth of the world pharmaceutical market by regional
group between 2018 and 2022, 2017).
1

METHODOLOGY
Data collection
It is important that appropriate method of data collection is used by researcher so that
expected targets out of the research can be developed. Basically, there are two types of data
collection methods. These are, primary data and secondary data. Primary data collection method
is related to collecting first hand analysis so as to prepare a review. However, secondary data is
related to analysis of information that has already been collected by other researchers. Critical
analysis to various point of view of the investigator is assessed for in depth analysis. Hence, the
present case of Merck, various regulations issued for pharmaceutical sector will be analysed
(Blackstone and Fuhr, 2012). Moreover, analysis of the industry and market, it belongs to, will
be prepared for its set up. Various online journals and articles will be studied so as to make the
knowledge base concrete regarding pharmaceutical and life science sector and assess revenues
and market share related aspects and views and suggestions given by various researchers to
Merck.
Data analysis
After collecting adequate data, it is important to analyse the same with utmost care as
results from this aspect affect overall conclusion and recommendation aspect of research. There
are basically two types of data analysis methods which are qualitative and quantitative. Since, a
secondary type of information collection method has been adopted, in that case, qualitative type
of data analysis method will be adopted for the present study. It will help in giving adequate
amount of knowledge to the reader regarding same.
LITERATURE REVIEW
Market Overview
It is important to analyse the market before opting for any expansion or adoption of new
strategy. It helps in developing a fair idea regarding the functioning of a particular sector. Since,
majority of the companies these days are working at global level and require 360-degree view of
the same. Hence, global industry analysis is generally performed by the researcher so that
substantial idea regarding the particular sector can be developed.
2

Pharmaceutical sector
According to Drahos and Braithwaite, (2017) Pharmaceutical industry plays an important
role in discovering, developing, producing and marketing pharmaceutical drugs which are
generally used as medication to treat a certain health issue or disease. These types of companies
are generally involved in dealing with generic or branded medicines and other medical devices.
It is important for these organizations to follow variety of laws, rules and regulations that are
issued by the government of a particular country, such as, patenting, safety, testing, efficacy and
marketing of drugs. Germany has been ruling this sector since years where it has been the best
location for research, production and distribution of pharmaceutical products as an exceptionally
high level. It has direct access to international renowned scientists, who are involved in
researching and discovering new medicines and marketing the same in all around the world. An
increased demand of pharmaceutical products has given rise to expansion of this sector.
Statistics
As per the views of Fischer and et.al., (2012) majority of companies belonging to this
sector are small and medium enterprises. There are around 105 million people who are indulged
in working in this sector. 95% of the pharmaceutical companies owns less than 500 employees.
However, Gustot and et.al., (2015) specific that various large companies involved in this sector,
such as, Merck, have to cut their cost due to immense cost pressure from the market. Rigorous
competition in the market have forced the company to come up with affordable drugs so as to
remain competitive.
Revenue
Revenue is an important aspect to judge that whether the company is able to gather
adequate amount of profits for its sustainability or not. As per the statistics collected in 2014,
total revenue earned by this sector worldwide exceeded one trillion US dollar. Since, a major
dependence of pharmaceutical sector has been found on research and development aspect.
Hence, majority of the organizations are involved in investing 20% of the total revenue in
research and development activities.
3

Figure 1Revenues of pharmaceutical sector
(Source: Revenue of the worldwide pharmaceutical market from 2001 to 2016 (in billion U.S.
dollars). 2017)
Global sales
Due to increase in the requirements of individuals for pharmaceutical products, a constant
growth in global sales can be noticed. Hence, a growth rate of 6.3% can be seen in the overall
sales of the industry (Saeedkia, 2013). Its growth is related to rigorous research and development
program adopted by companies to grow and stay competitive in the market. Merck has been able
to generate the highest revenues in year of 2013 with an annual growth rate of 5%.
4

Market Size
A tremendous growth is expected to take place in pharmaceutical sector by the year,
2020. It is expected that overall revenue of the sector will grow by 1430 billion. The growth is
expected to be 30% by 2020 which is 15% in year 2016. The overall value of German market is
expected to be $65 billion by 2020.
Figure 2Market share
5

(Source: Contract drug production – discover trends and markets with highest revenue
potentials. 2017)
Figure 3 Market share of Germany pharmaceutical company
(Source: German Pharmaceutical Market Set to Hit $65 Billion by 2020. 2015)
Life Science Sector
A continuous evolution has been noticed in life science organization. Life science is related
to the field of biotechnology, biomedical technologies, nutraceuticals, food processing, life
systems technology etc. A variety of efforts are devoted in research, development, technology
transfer and commercialization by the team that is involved in this practice. It is considered to be
the main aspect in functioning of pharmaceutical industry.
Revenue
The life science industry has been able to earn a total revenue of US $ 1.7 trillion in the
year 2015. Researchers have stated that it takes around 10 to 15 years to develop a particular
drug. A tremendous growth has been experienced by this sector since years due to exposure of
advanced research and development technology (Vandoros and Stargardt, 2013). A positive
trend of growth has helped the organization to invest majority in the research and development
so as to come up with advanced methods in life science.
Global sales
There are various companies in the market that are present who opt for life science sector
these days. Availability of fierce competition in this field has helped in expanding the Germany
market to a global level where there are various companies who are involved in serving the
requirements of global market as well. The generic market which is related to life science
industry is expected to have a global revenue of 283 billion US dollar by the year 2018.
6

Market size
As per the views of Quirke, (2012) a continuous increase in the market share helps an
organization to grow tremendously in a manner that maximum customers are attracted towards it.
The organization also ensures that the best methods are adopted by it so that it can enhance its
market share. An increased growth is expected out of pharmaceutical sector which helps in
ensuring that an expansion of Germany pharmaceutical market can be expected by the year 2020.
The amount of revenue being earned by the company is expected to expand by 30% which is
only 15% in the year 2016. In case of Merck Germany, it is expected that a growth of 15% in its
market share can be predicted in next few years. As per the views of de Jong, (2013) it indicates
that a vast enhancement in the funding criteria in expected by enhancing the overall confidence
of the investors in this sector. It is also analysed by the researchers, that 80% of the projected
growth is estimated in the form of pharmaceutical sales through the established markets of the
world, such as, China, United States, Europe, North America and Germany. Merck is considered
to be one of the major brands of Germany and a key role will be played by it in the expansion of
the overall revenues of the sector.
Cell Culture Media (definition)
Cell culture is considered to be one of the major technique in life sciences. The term is
generally used for the removal of cells, organs and tissue from plants or animals so that they can
subsequently be placed in an artificial environment for the measurement of its survival and
proliferation. The environmental requirements of the cells are taken into consideration so that
7

they can grow in the conducive environment optimally. It can be in the form of temperature
control, providing appropriate medium of growth, maintain correct pH level of them, etc (Parikh,
2016). Another important step for effective cell culture is in the form of selection of optimum
medium that can enhance the growth. It is a liquid or gel designed form of support that assist in
the growth of microorganism, small plants and cells. Cell culture media also comprises of
appropriate source of energy that helps in regulating cell cycle. The typical culture medium is
comprised of various compounds, in the form of vitamins, amino acids, glucose, inorganic salts
and serum as a source of growth factors, harmonies and other factors attached to it.
Cell Culture Media Market Overview
Due to significant decrease in World economic growth, a greater impact has been
suffered by the cell culture media industry. However, the sector has been able to manage
adequate amount of growth in optimistic manner. As per the views of Comanor and Scherer,
(2013) an increasing rate of growth has been estimated by the researchers that is directly attached
to cell culture media market. It is due to various reasons that is attached to increase in the
number of biotechnology business enterprise. A rapid increase in the overall number of
companies related to it is also traced. An excellent growth is expected out of this industry, where,
the organizations related to bio technology and pharmaceutical sector will grow by 9.4% from
the year 2017 till the year 2020. It is due o increasing demand of pharmaceutical products that
may lead the sector to enhance its overall market share.
Market size
The market size of global cell culture market is estimated to be of USD 16.4 billion as in
2014. The market size of cell culture media has been able to maintain an average annual growth
rate of 5.66% in the form of $1280 million dollar in 2013 to $ 1510 million dollar in the year
2016. It is expected by the researchers that there will be a massive growth rate of the sector by
the year 2021. Hence, it optimistically expected that the sector will be grown and reach up to
$1980 million (Gadipelly and et.al., 2014). A growing advancement in the gene expressions and
development of new vaccine for various diseases has increases the demand for investment in cell
culture. It has demanded vertical integration in then market hence, growth in this sector is
expected to be grown by leaps and bounds enhancing the overall market size and revenues of the
companies attached to it as well.
Segmentation
8

The companies that are linked to cell culture media market opt for marketing techniques
in order to attract large number of investors towards it. The market is generally segmented based
upon geographical region where it is assessed that whether the company will be able to satisfy
the requirements of a set of individuals or not. hence, based upon the customer base that can be
covered by the seller for the particular product is selected and assessed the reach and
requirements are judged as per increase in overall market share and revenue of the company.
Key Players
There are various companies who have been involved in this sector. Major role is played
by the companies belonging to brazil, China, US and South Korea. Germany have been able to
maintain its place where it has been one of the largest exporter to pharmaceutical products in
various countries. China has also been one of the major producers of pharmaceutical products
where it has diverse market of overall 3000 local manufacturers that are being present in the
country and have been able to implement growth in the sector (Magano and Dunetz, 2012). It has
played an important role in enhancing overall growth of pharmaceutical sector which is
responsible for continuous economic growth and development.
Frameworks
PESTLE analyses
As per the view of Jahan, (2018) Merck is the international pharmaceutical firm that
conducts its operations across the world. Though it has encountered huge success worldwide but
still cited firm is facing huge issues. There are various external factors that impact on the overall
performance of business unit to great extent. Political component is considered as one of the
major element that affect its operations. Growing political focus is creating pressure on health
care firms to make changes in their existing practices. Trade in Germany causes trouble for the
Merck. Government of Germany pays more attention of quality of pharmaceutical products and
make necessary changes in standards so that population can get quality products from the
suppliers. Government stability is the positive element that supports the Merck in conducting its
operations in the Germany significantly. Recently tax rates have been increased in the nation that
has enhanced burden of the cited firm. Wace, (2014) stated that economic condition is the main
factor that affect overall business operations of the business unit significantly. Germany has
stable economy. Interest rate in the country is high that force Merck to enhance its product's
9

prices. It is essential for the Merck to increase its prices to manage its costing but due to this
burden transfer to the end users. That sometime impacts on the sales of the pharmaceutical firms.
According to NZUKI, (2017) social cultural aspects plays significant role in the business
unit. Population of Germany believes in traditions. There are diverse cultural people live. This
impacts positive on the business unit because it becomes able to offer them pharmaceutical
products as per their beliefs and cultural aspects. Jahan, (2018) stated that technological factor is
considered as one of the major element that impact on the business unit to great extent. Merck
always implement the latest technologies and discover new ways so that it can produce such
medicines that can prevent people from diseases. Merck concentrates on conducting market
research and look at the therapeutic categories. For example cardiovascular disease, infectious
diseases are taking place with the rapid speed. Thus, Merck concentrate on using advance
technologies that can help the firm in producing high level of pharmaceutical medicines that can
improve health of people and can provide support to medical professionals in order to deliver
quality care services to patients. Before implementing any technique cited firm concentrates on
occurrence of disease and how it works. It analyses the mechanism and try to find out its
effectiveness. Using any drug in any pharmaceutical product is risky task so Merck discover the
things about drugs and then develop medicines.
According to Wace, (2014) environmental and legal factors impacts on the business
performance of the firm, Merck follows environmental and other laws and take care of
environmental elements so that it does not harm to the surrounding.
SWOT analyses
NZUKI, (2017) stated that Merck has strong brand image. That supports the firm in
conducting its business across the world significantly. One of the major strong point of the
business unit is its research and development procedure. Company spends much time on its R&D
activities and before using any drug in the end product it discovers the facts about it. Company
has employed more than 400000 employees. All these workers contribute well in improving
performance of business unit to great extent.
As per the view of Wace, (2014) as Merck has strong global brand image and operating
globally but fake imitation has affected its reputation to great extent. It was in light before some
time due to its fake imitation of products. Market entry strategies of Merck is weak that is why it
is unable to enter into emerging markets. Jahan, (2018) argued that Merck has opportunity to use
10

advance technologies in order to provide sustainable solutions in the countries (SWOT Analysis
of Merck, 2016). It has opportunity to adopt therapeutic diversification and expand into many
other emerging countries such as Russia, China. It has opportunity to enter into biologics market
by taking support of merger and acquisition. According to Wace, (2014) advent of new
technology is the threat to the business. High competition is the major threats to the Merck.
There are many pharmaceutical firms such as Sun pharma industries, Ranbaxy are the biggest
competitor of the Merck.
Porters five forces
According to Jahan, (2018) porter's five forces is the external environmental analyses tool
that supports in analysing the external elements that affect overall operational efficiency of
business unit. Merck is the international pharmaceutical company and the market leader.
Supplier power is the first force that affect business. Company requires several organic
chemicals thus, it has to be depended upon several suppliers. Many suppliers provide the drugs
to the cited firm at low cost (Merck SWOT Analysis, USP & Competitors, 2017). For example
cost of patent drug is very low as compare to its selling price thus, power of suppliers are low in
the pharmaceutical industry. Power of consumers are low to moderate. As cited firm provide
health care products, medicine that are requirement of consumers. If they suffer from any disease
then it is compulsory for them to buy such materials. In such condition buyers do not have power
to influence performance of the firm. Furthermore, power of competitors is very high.
Competitors can influence business conditions to great extent. Pharmaceutical firms have to face
huge competition and if there is weak firm then it would be difficult for the entity to sustain in
the market for longer duration. NZUKI, (2017) stated that threats of substitution is moderate.
Generic firms are concentrating more on reduce cost thus, these firms are threats to the
pharmaceutical companies. Threat of new entry is another force which power is very low. In
order to enter into this industry company is required to invest huge amount and required to have
huge experience in the relevant field. They have to invest in research and development. Apart
from thus patent protection act creates difficulty for the new firms to enter into the market.
RESEARCH ANALYSIS
Positioning of Merck
Merck which is from Germany have been among the largest pharmaceutical companies in
the world. The main goal of any company is attaining profitability and introduce sustainability in
11

its functions. In order to assure this space, Merck has been involved in serving customers from
all around the world. In other words, it can be stated that, Merck has been able to position itself
in the market in such a manner that it is able to serve the requirement of people situated globally.
The organization is involved in selling consumer healthcare products of around $ 1 billion in the
year 2016 (Gassmann, Reepmeyer and von Zedtwitz, 2013). Since, the pharmaceutical market is
quite competitive, so as to cope up with the same, Merck have been involved in continuous
research and development programme that can help it to come up with new medicines and drugs
that are currently by the other companies. It will help in creating an edge over the existing
competition. Merck has been bel to position itself in various countries, such as, Middle East
countries, Latin America, Europe, North America, Asia-Pacific and Africa.
Figure 4Positioning of Merck
(Source: People at Merck. 2018)
Competitors
The prime role of pharmaceutical industry is to develop, produce and market various
medications, drugs and medical related products. Hence, there are various existing companies
who are involved in similar functioning as that of Merck. Hence, it becomes important for Merck
to analyze the functioning of competitors as well so that better strategies can be prepared by it so
as to remain competitive in the market. Among all the available companies, Novartis have been
able to achieve highest revenue, which is generally followed by Pfizer and Bayer. Pfizer have
been the company which is able to generate maximum revenue from all around the world. The
company ranks one in tapping maximum markets all around the world. Hence, it can be stated
12

that there are various companies who have been functioning worldwide. It becomes important for
Merck to come up with the planning that can help it to survive in the competition.
Figure 5 Revenues of Competitor's company
(Source: Mehralian. and et.al., 2012)
Influence of emerging markets
With the growing demand of pharmaceutical products, it has become important for the
companies to serve the requirements of the customers. In order to perform this function, it
becomes important to analyze the market and opt for never ending market research strategy that
can ultimately help the company to grow and expand in this market. Due to growing demand, it
can be stated that pharmaceutical sector has been able to generate maximum revenue by serving
the customers in the environment. The health care products at global level is able to produce
$233.2 billion in 2017 through retail sector (David, B., Wolfender, J. L. and Dias, 2015). Due to
constant increase in the requirements of pharmaceutical products, the growth rate of this sector is
always higher in comparison to the previous year. It also helps in ensuring that overall demand
of the product is fulfilled with the help of adequate availability of health care products in the
market. As per the projected growth rate of the sector, the graph mentioned below helps in
describing that the sector is expected to have approximately 6% of the total growth rate at the
global level. However, in case of developed countries, an increase of 3% is expected. The growth
13

will help in increasing the overall investment that can be used in further research and
development programmes of the pharmaceutical companies.
It can be stated that Merck must invest in expansion due to constant increase in the
demands of pharmaceutical companies in the world. It will help the organization to grow and
compete with the competitors that are available in the market. It will act as a positive factor that
can stimulate growth and increased for Merck while serving the requirements of pharmaceuticals
worldwide.
Figure 6Figure 3Projected Sales
(Source: Projected growth of the world pharmaceutical market by regional group between 2018
and 2022. 2017.)
Social media comparisons correlation
Social media have been able to become an important place where majority of the
customers can be tapped and they can be digitally introduced to the company. In such cases,
presence of the company on social media website helps in marketing the organization at global
level and tap the customers who may not be aware of the company earlier as well (Jungmittag,
Reger and Reiss, 2013). Pfizer is a quite known brand which not only market itself in an
14

effective manner, but also able to serve the customer through online method. Hence, in such
scenario, presence on social media act as an important method that can ultimately lead the
company to profits and brand management. It has been ascertained from the research that,
Merck’s presence of social media is quite weak and hence require adequate amount of exposure.
Active profiles on social media can help the organization to expand its business and increase its
goodwill and customer base through the same.
Price comparisons
Prices plays an important role as it helps in deciding that whether the customers are going
to purchase the products from the company or not. Various customers who are aware of certain
medical drugs tend to compare the prices of one product belonging to one company or the other.
During the research which involved comparing prices, various companies, such as, Merck and
GE healthcare are not involved in listing the prices of their products. They tend to ask their
customers to call customer desk or also request its customers to quote the prices (Gereffi, 2017).
It helps in ascertaining that what prices are actually expected and demanded by the customers.
There are certain reasons due to companies like Merck do not opt for quoting their prices on their
websites. It helps ingiving an opportunity to the customers to interact with the customers.
Moreover, when a customer makes a call to the company, then in that case, the profile of that
individual gets to save in CRM system of the organization. It also helps the entity to understand
the requirements of the customers and based on which further research can be initiated by it.
When the customer gets involved in calling the company, the customer care executive can
explain the overall buying process to them which can certainly ease down their process.
Merck
Microbiology Insect Cell CHO
EZ-Fit filtration unit
N/A
1- IS CHO-CD XP (Powder &
Liquid)
Price: N/A
Size: 10 L
ChemiSCREEN CHO
membrane preparation
No information
regarding prices
EZ- Fit mainfolds:
(1 place): £1,116
(3 places): £1,790
(6places): £2,707
- Bottle Select CHO Cell
Culture Medium”:
Price: $64.89
Brand: BD Select
Pail Select CD1000:
Price not available
15

Size: 1L
EZ-Fluo system kits
Price not available
No other product available No other product
available
Pfizer
Microbiology Insect Cell CHO
EZ-Fit filtration unit
(100mL, 250mL) starting from
£132 up to £196 for different
sizes
- Hyclone PF – CHO LS and PF
– CHO MPS cell culture media
Price of the product is not
available
ChemiSCREEN CHO
membrane preparation
Price: £63.14 to £348.88
The price depends on the
unit size.
EZ- Fit mainfolds
Prices not available
Sf21 cells in Sf 900 (III) SFM:
Price: £456.01
Pail Select CD1000:
Price: $16,726.67
No other product available Hyclone Hycell CHO liquid
(medium)
Price: £52.08
- Hyclone SFM4 insect
cell culture media:
Price: $40.69
Novartis
Microbiology Insect Cell CHO
EZ-Fit filtration unit
Price: £113
Hyclone PF – CHO LS and PF –
CHO MPS cell culture media
Price of the product is not
available
ChemiSCREEN CHO
membrane preparation
Price: $64.89
EZ- Fit mainfolds
Could not find this product
High Five cells in express Five
(medium):
Price: £814.14
CD CHO (medium):
Price: £49.03 to
£1,460.50
16

Pricing strategy (Cost leadership)
Merck has not fully discussed the pricing strategy used by the it so as to list down the
products at certain prices. However, analyzing the prices quoted by them for different products,
it can be interpreted that Merck is trying to earn maximum number of customers to its customer
base. Moreover, it also trying to gain rather more customers as well. Hence, currently the
organization is opting for penetration strategy for effective pricing.
CONCLUSION
From the above report, it can be concluded that, Merck have been on of the giant
pharmaceutical companies that are present in Germany. Pharmaceutical sector has been the most
important industry that contributes maximum towards the GDP of the country. Hence, in order to
generate highest revenues from the same., companies opt for investing major part of their
revenue in research and development sector. The health care products at global level is able to
produce $233.2 billion in 2017 through retail sector. Due to constant increase in the requirements
of pharmaceutical products, the growth rate of this sector is always higher in comparison to the
previous year.
FINDINGS
The above research has been able to provide a lot of information regarding pharmaceutical
sector. It stated that majority of the organizations are involved in investing 20% of the total
revenue in research and development activities. A growth rate of 6.3% can be seen in the overall
sales of the industry. The growth is expected to be 30% by 2020 which is 15% in the year 2016
(Braithwaite, 2013). The life science industry has been able to earn a total revenue of US $ 1.7
trillion in the year 2015. It is also analysed by the researchers, that 80% of the projected growth
is estimated in the form of pharmaceutical sales through the established markets of the world,
such as, China, United States, Europe, North America and Germany. The market size of global
cell culture market is estimated to be of USD 16.4 billion as in 2014. The market size of cell
culture media has been able to maintain an average annual growth rate of 5.66% in the form of
$1280 million dollar in 2013 to $ 1510 million dollar in the year 2016.
RECOMMENDATIONS
From the overall research that has been above, following recommendations can be given to
Merck:
17

 There is availability of fierce competition in the pharmaceutical market which generates
the requirements for Merck to invest more research and development department of the
company.
 Innovation is the key to survive in the market. Hence, raising this area can help Merck to
compete with the other companies available in the market at global level (Wang and
et.al., 2013).
 To raise the overall investment for the company so that new products and services can be
provided to the users.
 It has been analysed in the report that, Merck have not been able to expand itself at
social media in effective manner. Hence, it is advised to the company to market itself in
the digital marketing format as well so that large number of customers can be attracted
towards it.
18

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