Merck’s SWOT Analysis
The pharmaceutical industry is highly competitive, as one of the top five companies only accounting for 18% of the market share, Merck is one of the largest pharmaceutical companies in the world that is a research driven company. At product market level, companies have been forced to compete in terms of original brands and generic drugs. In markets targeting price sensitive customers, generic drugs are generally preferred. By contrast, other company products compete based on efficacy, safety, and compliance by patients in markets that are not price sensitive. Most pharmaceutical companies patent their products to safeguard against generic products that could potentially drive down their prices and reduce their return on investment. To enhance competitive advantage, companies invest in research and development to ensure innovation and development of new products. Listed below is a brief SWOT analysis for Merck:
Strengths
• Global presence
• Strong brand name in pharmaceutical industry
• Huge pharmaceutical product portfolio
• …show more content…
Although risky, the strategy is potentially rewarding. For instance, the decision to maintain a broad portfolio by introducing new products in its respiratory and cardiovascular franchises including DAXAS and mometasone, allow the firm to tap into a potentially lucrative global market. Its products, JANUMET and JANUVIA, also enable Merck to sustain a significant lead in the DPP-4 (dipeptidyl peptidase – 4) market. The company also targets emerging markets, typified by investment in new technology and innovation, which have yielded valuable medicines and vaccines. In addition, the company continuously looks for new markets for its products, such as Latin America and China. The new brands, such as JANUVIA and NUVARING, designed to address major health challenges in emerging markets, contribute a considerable portion of the company’s
The pharmaceutical industry is highly competitive, as one of the top five companies only accounting for 18% of the market share, Merck is one of the largest pharmaceutical companies in the world that is a research driven company. At product market level, companies have been forced to compete in terms of original brands and generic drugs. In markets targeting price sensitive customers, generic drugs are generally preferred. By contrast, other company products compete based on efficacy, safety, and compliance by patients in markets that are not price sensitive. Most pharmaceutical companies patent their products to safeguard against generic products that could potentially drive down their prices and reduce their return on investment. To enhance competitive advantage, companies invest in research and development to ensure innovation and development of new products. Listed below is a brief SWOT analysis for Merck:
Strengths
• Global presence
• Strong brand name in pharmaceutical industry
• Huge pharmaceutical product portfolio
• …show more content…
Although risky, the strategy is potentially rewarding. For instance, the decision to maintain a broad portfolio by introducing new products in its respiratory and cardiovascular franchises including DAXAS and mometasone, allow the firm to tap into a potentially lucrative global market. Its products, JANUMET and JANUVIA, also enable Merck to sustain a significant lead in the DPP-4 (dipeptidyl peptidase – 4) market. The company also targets emerging markets, typified by investment in new technology and innovation, which have yielded valuable medicines and vaccines. In addition, the company continuously looks for new markets for its products, such as Latin America and China. The new brands, such as JANUVIA and NUVARING, designed to address major health challenges in emerging markets, contribute a considerable portion of the company’s