Strategic Management in Global Pharmaceutical Industry

Running head: STRATEGIC MANAGEMENT
Strategic management
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Executive summary
The aim of this report is to discuss about the current trends in the global pharmaceutical industry
along with the key issues being faced by them. It is identified that there are number of challenges
being faced by the pharmaceutical industry from different perspectives. In addition, VRIO
analysis is also being done for Pfizer and it is identified that rarity and inimitability is the major
competing factor for the pharmaceutical firms. PESTLE analysis concluded that there are
numbers of external threats and opportunities being faced by the pharmaceutical industry. It is
also concluded that the level of competitiveness in the pharmaceutical industry is limited.

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Table of Contents
Introduction......................................................................................................................................3
Industry analysis..............................................................................................................................3
Key issues with the pharmaceutical industry...................................................................................4
Strategic perspective of global pharmaceutical industry.................................................................5
VRIO analysis of Pfizer...............................................................................................................5
Macro environmental analysis.........................................................................................................7
Political factors............................................................................................................................7
Economical factors......................................................................................................................7
Social factors...............................................................................................................................7
Technological factors...................................................................................................................8
Environmental factors..................................................................................................................8
Legal factors................................................................................................................................8
Porter 5 five forces analysis.............................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................11

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Introduction
Global pharmaceutical industry is one of the largest and potential business sectors in the
world and with the increase in the health concerns across the world; this industry is gaining more
importance in the market. However, it should also be noted that increase in the opportunities in
this sector is also attracting more competitors, which is further increasing the intensity of the
competition. Global pharmaceutical industry is not defined by the including only the medicine
manufacturing sector but also the surgery and other equipments (DiMasi, Grabowski & Hansen,
2016). Thus, this sector is huge and according to the reports, it is currently standing at USD 1.2
billion as of 2017, excluding the animal health sector worth of USD 32 billion. However, still
there are few determining the factors in this industry that should be noted.
This report will discuss about these determining factors for the global pharmaceutical
industry along with the discussion about the strategic position of a particular pharmaceutical
brand. The external factors will also be discussed on the basis of PESTLE analysis and
competitive analysis on the basis of Porter 5 forces. Based on the issues identified, a few
recommendations will also be discussed.
Industry analysis
As discussed in the above scenario, global pharmaceutical industry is one of the largest
industries in terms of revenue and also one of the biggest employers in the world. However, it
should be noted that this industry is organized across the world. This is mainly due to the reason
that only the large scale entities can survive the high research and development cost in this
industry (Ruijter & Orru, 2013). Hence, there is no evidence of fragmentation in this industry.
One of the major drivers of this industry is the emerging health concerns due to the fact that the