Merck Germany: A Leading Chemical and Pharmaceutical Organization

Discover the success and growth of Merck Germany, a multinational chemical and pharmaceutical organization. Explore the market analysis, revenue, and market size of the pharmaceutical and life science sectors. Learn about the company's positioning, competitors, and the influence of emerging markets.

MERCK
GERMANY

INTRODUCTION
• Merck Germany is most
popular and widely known as
Merck, is analysed as German
multinational chemical,
pharmaceutical and life
sciences organization.
• Operations of company was
started in the year 1668 and it is
known as world's largest
operating chemical as well as
pharmaceutical business
enterprise.

METHODOLOGY
Secondary-market analysis
• Data collection: Secondary methods is used to conduct the analysis
of market in which the Merck Germany regulates its business
operations such as pharmaceutical, chemical and life science sector.
• Data analysis: In this research, thematic method of data analysis is
used in which different themes are developed on the basis of
outcomes and data are interpreted using graphs, chart and diagrams.

LITERATURE REVIEW
Market Overview
• A market analysis is method that studies the attractiveness and the
dynamics of a special market within the special industry.
• It is also considered as part of industry analysis and thus in turn of
the global environmental analysis.
Pharmaceutical sector
• Germany is the best international location for the research,
production and distributions of pharmaceutical at an exceptionally
high level.
• It is also analysed Merck pharmaceutical have achieved major
success in their production and selling various medicine due to the
availability of highly trained labour

Statistics
• More than 105 million people work in this sector , three out four
companies in small scale have less than 100 staff
• It is also analysed that approximately 95% of companies this sector
in Germany have less than 500 employees.
• Manufacturers of medical products like Merck Pharma have faced
and must continue to face measures of cost cutting like price
decrease and compulsory manufacturer discounts.

Revenue

Global Sales
• Growth of companies in pharmaceutical sector has been increased
due to increase in sales and demand of pharmacy products.
• The global growth rate pharmaceutic industry which is indicated by
the world previous report is 6.3%.
• Increase in the cost of research and development has been covered
by the Merck through highest revenue generation in the year 2013.
• Annual revenue which is earned by the pharmaceutical sector
companies has been growth up to 5 % in the last two to three years
due to their major efforts in conducting the research and
development.

Market Size
• Companies have provided a projection that the pharmaceutical
sector in worldwide has been estimated to grow and increase by
2020.
• The amount of revenue which is earned from this sector will expect
to grow by 1430 billion.
• Their various regions in Europe and Asia pacific such as will
globally make their investment more than 30% on this sector by the
starting of year 2020 as compared to the 15% growth in investment
in the year 2016.

Life Science Sector
• With the continuous evolving industrialization of the important life
science organizations needs to embrace the exponential alterations
in the technology to expand and make change in the ways they
work.
• According to market research, from the process of drug delivery to
production and diagnostic of the problems the company is focused
towards resolving the toughest problems in the ways of life sciences
through the collaboration with the global scientific community.

Revenue
• Statistics have carried out the figures that Pharmaceutical sector in
life science have earned the major and highest profits of around 1.23
trillion dollars in the year 2014.
• Life science sector involves the pharmaceutical, healthcare and bio-
tech segments which is continuous achieving high revenue at global
scale, sustained in the most important part due to continuous
growing market and usually pro-motive worldwide.

Global Sales

Market Size
• Continuous rise in awareness as the education level among the
consumers is also slowly driving the life science sector to deliver
various value based important services.
• Along with this, it also aids to consistently provide the market level
high evidences their products efficacy.
• Moreover, this Merck Germany also has the potential to make
changes in their conventional brand-centrist method of marketing of
their wholly developed bio-pharmacy elements and products to the
more effective and the personalized approach at the time of targeting
the consumers.

Cell Culture Media Market
Overview
• It is major solution that has been processed from the various
different micro organisms in order to cultivate the cells along with
the tissues and microorganisms within the artificial atmosphere for
the scientific motive.
• It is also considered as a removal cell from different organisms
which are incubating various cells in the major artificial atmosphere.

Frameworks
• Political: Increasing effects of Brexit have provided major influence
on the growth and development of Merck Germany. Market share of
company has estimated to decreased due to disruptions.
• Economic: Increase in economic growth has provided positive
impact on business and increase the demands of products.
• Social: Increase consumers awareness and level of education has
provided support in increasing the sales of pharmaceutical products.
• Technological: Growth in technology which are used for production
of bio-tech products has provided positive impact and tends to raise
the sales and profitability of enterprise.

SWOT Analysis
• Strengths:
– Growth and innovation
– Increase in consumers awareness.
– Rise in projected sales by 2020.
– Increase in brand loyalty and public image.
• Weaknesses:
– Impact of legal regulations.
– Increase in tax rates,
– lack of online presence
– ineffective supply chain

• Opportunities:
– Continuous rise in technology.
– Development of effective supply chain.
– Continuous emerging market.
– Increase in global expansion.
• Threats:
– Increase in competition.
– Fluctuations in the currency exchange rates.
– Government policies.

Porter’s five forces
• Bargaining power of suppliers: suppliers in pharmaceutical sector
are in dominant position which can decrease the margins.
• Bargaining power of buyers: Power customers in market is high due
to availability of competitors.
• Competitors rivalry: High competitors rivalry due to increase in
growth and opportunities as well as involvement Chinese companies
in Germany.
• Threats of new entry: New entrants in this sector brings innovation
but requires huge investments.
• Availability of substitutes: The threat of a substitute product or
service is high if it offers a value proposition that is uniquely
different from present offerings of the industry.

RESEARCH ANALYSIS
Positioning of Merck
• It is involved in expanding its expertise so that it can expand its
business to the countries where it is not present yet.
• The company is involved in selling consumer healthcare products
with the sale of $1 billion.
• A continuous research is performed in a manner that can help the
company to come up with new medicines and health care product
which may not be currently offered by any other company.

Competitors
• The main competitors of the
company are, Novartis,
Pfizer, Johnson and Johnson,
Bayer etc.
• Pfizer ranks one in tapping
maximum number of
markets in the world.
• Merck is involved in aiming
for continuous growth and
innovation activities.

Influence of emerging markets
• The global market of consumer health care products has been able to
produce estimated sales of $233.2 billion in retail in 2017.
• The projected growth in in the world of pharmaceutical industry is
with an annual growth rate of 6% is expected at the global level.
• Moreover, the developed country may experience an increase of 3%
which will help the sector to produce more output and invest the
same in expansion and research strategy of the company.

CONCLUSION
• The pharmaceutical sector is one of the major growing sector in
Germany which has provided major contribution towards rise GDP
of country.
• Merck Germany has achieved major growth in this sector and also
increased its opportunities of global business expansion.
• Merck Germany regulates its business operations such as
pharmaceutical, chemical and life science sector. revenue of the
pharmaceutical sector in Germany has been increased up to 1 trillion
which is considered as major growth for the first time.

FINDINGS
• Pharmaceutical sector has achieved major growth in the year 2014
through a growth of around 1.23 trillion US dollars.
• The market size of the pharmaceutical sector in the UK has also
tends to raise due to increase in expansion of business operations of
companies in this sector.
• It is also analysed that approximately 95% of companies this sector
in Germany have less than 500 employees.

RECOMMENDATIONS
• It is essential for company to
provide more focus on innovation
and it should also raise its
investments in the research and
development department in order
to develop new products and
services for users.
• They need to measure the
experience of the patients
towards their particular drug
which will provide them support
in analysing the elements

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• Online
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through <https://www.statista.com/statistics/272183/projected-growth-of-the-world-pharmaceutical-market-by-region/>.
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