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Introduction of Strategy, Enterprise, And Innovation Case Study
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Pfizer Inc. is an international biopharmaceutical company located in America, with New York being its headquarters. The company was developed in 1849 by Charles F. Erhart and Church Pfizer (Pfizer Inc., 2022). The company is one of the largest international biopharmaceutical product development companies. Pfizer Inc. is a leading Global giant that applies science and global resources to developing innovative therapies for people that can improve their lives (Eisele 2021).
Pfizer has continuously fulfilled its responsibilities by developing innovative biopharmaceutical products in vaccines and medicine to improve healthcare services. The company has also collaboratively worked with its partners during the difficult times in the Covid-19 pandemic when the world was facing a huge turmoil due to the spread of the Covid-19 virus. Intending to develop innovative pharmaceutical medicines and vaccines to fight against the covid-19 virus, Pfizer has tried to maintain high-quality standards of the vaccines and medicines (Pfizer Inc., 2022). Pfizer's continuous innovation, growth, and success are highlighted in its development of vaccines like mRNA to fight against the covid-19. The company has also maintained its manufacturing and development of health care products (Eisele 2021). The company's innovative approaches have made their way to success and brought tremendous achievements for the company to develop a robust pharmaceutical company in the world.
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Key drivers of innovation
Investments
The company has successfully implemented various innovative Strategies and development processes to enhance service quality and product quality (Wouters, McKee, and Luyten 2020). By implementing various investments in different Healthcare genders, Pfizer has brought innovations in healthcare services. In addition, multiple investments for research and development areas in different areas of the company, including Vedanta, ESSA, homology, and Trillium, have helped the company bring innovative development using the resources and capacities of the company to provide breakthroughs to the patients (Eisele 2021).
Leadership
The company leaders have identified various areas where the innovation needs to be implemented. They have a huge contribution to innovative product development. They continuously focus on the required and needed areas of the patients or the customers through which the company can deliver to improve people's lives through their Healthcare products and services. The leaders also collaborate with various organizations (Weintraub and McKee 2019), Health Care providers and suppliers, government agencies, and the local community to deliver biopharmaceutical products in vaccines and medicines.
Inventors
Inventors are also important figures for developing innovations in the organization. Inventors are the persons who develop new areas using technology and other sources through which the customers' demands can be met. The inventors help the company by inventing various methods of improving the drugs, medicines, and Healthcare services (Erzurumlu and Pachamanova 2020). These inventors play a crucial role in developing innovative products and services for Pfizer.
Employees
Another driver of innovation in the company is Pfizer's skilled and qualified employees. The company employees are highly skilled and have enough capabilities to develop various biopharmaceutical products and services. With the employees' skills, the company has successfully brought creativity and innovations to the health care sector. The continuous development of innovative and creative ideas has helped the company develop new high-quality medicines and vaccines for not patients to meet their customer's demands (Slåtten, Mutonyi, and Lien 2020). The employees' contribution has also assisted the company meets the various health-based requirements of the patients. With their skill and knowledge, the company has also developed the covid-19 vaccine, which has immensely enhanced its reputation. The discovery of the vaccine has helped the entire society and patients combat the spread of the virus.
Proactive patients
The demands and requirements of the patients to get more medicines and Healthcare services also have a huge significance in developing innovative products and services in the company. The company has a huge brand image for developing various drugs and health care products. The demands for developing treatment and medicines for various diseases like cancer of covid-19 and other diseases have also help to the company bring innovation in their product development and quality improvement of the healthcare service (Kaba and Barnes 2019).
Digitization
The most crucial and significant impact of developing innovation in an organization is the digitization process. Using variously advanced technology best systems, the company has improved its health care services. Different technological systems like machine learning, robotics, and artificial intelligence are used to identify the market requirements (Khan, Siddique, and Lee, 2020). The company also uses this technology to enhance the product to the development process. Artificial intelligence also helps in developing efficient products and services. Therefore, digitization or advanced technology has a huge significance on the company's innovative process. Using the digitization process, the company also makes effective decisions in implementing innovative processes for the treatment and medication. It also helps them in interesting with the health care professionals and healthcare providers to understand the requirements in the healthcare sector (Khan, Siddique and Lee 2020). This is how it helps them bring innovation in the service and products.
A holistic approach to healthcare
The impact of a holistic approach to health care for product Innovation and development has also helped the company implement new and unique ideas to enhance the product and service development process. The holistic approach considers that medicine that involves complementary and traditional medicines. Using the holistic approach to health care, the company also implements medicine and vaccine development innovation. The holistic approach has the managers and leaders of the company identify the major problems of the patients (Borrás and Edquist 2019). Thereby it helps them make affected decisions in improving the health and welding of people with the development of innovative approaches to health care. The holistic approach also impacts preventing long-term illnesses and diseases, which also influences the leaders of the company to implement innovative Health Care approaches or medicines. For example, the development of cancer therapies.
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Frameworks and approaches for Entrepreneurial vision and business model
Porter's five forces
Analysis of the competitive advantage of Fazer will be done with the help of porter's five forces model.
Bargaining power of the buyers
The medicines and vaccines developed by the company have a huge market demand. The pharmaceutical companies in the delivery of medicines and vaccines are limited in number; therefore, the bargaining power of the customers is low (Khanal and Lenhoff 2021). For example, Pfizer's development of the Covid-19 vaccine has huge market demand. The customers cannot shift their purchasing decisions regarding the vaccine to other companies as minimum companies are delivering the vaccine. It has therefore increased the competitive advantage of the company.
Bargaining power of the suppliers
The bargaining power of the suppliers is high because limited suppliers are providing the materials for developing vaccines and medicine in the company. The company has to depend on the suppliers to supply the products. Pfizer can increase the number of suppliers, which will enhance the company's advantage (Mehrotra, Malani, and Yadav 2020). It will not require to depend on one single supplier. This is how the beginning power of the suppliers can be reduced.
Threats of substitute products
As many other competitors deliver similar services and products to the customers, substitute products in the range of medicines and vaccines can also be developed. Therefore, the company needs to develop more innovative and new medicines and health care services for the customers to increase their attraction. In addition, the company can also develop innovative strategies for meeting the customers' expectations and requirements of the healthcare market (Bradley et al., 2019). As a result, it will also increase its competitive advantage over Pfizer.
Threats of new entrants
The development of biopharmaceutical companies requires a huge amount of capital, expertise in the healthcare medicines, vaccines, advanced technology-based systems, and expertise in biopharmaceutical services. It also requires approval from the government to develop a search pharmaceutical company (Zhang, Guo, and Sun 2019). Therefore, Pfizer's thread for a new entrance into the biopharmaceutical industry is low. Rather the company needs to develop its innovative Strategies and product variations so that no new companies can compete against Pfizer.
Competitors or rivals
Many other large and international level drug manufacturing companies are present in the market and deliver similar products and services to the customers. The major rival companies of Pfizer include Roche Holding, AstraZeneca, Novartis AG, Eli Lilly, and Co, AbbVie Inc., and many more (Pfizer 2022). The rival companies also have a huge revenue collection and market capital which have strengthened their position in the market. Therefore, the competition level is high in the pharmaceutical industry.
Porter’s five forces
(Source: Kabeyi 2018)
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Key partners
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Key activities
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Value proposition
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Customer relationship
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Customer segment
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Partners of the company are shareholders; government, local communities, healthcare providers, and biopharmaceutical agencies are the company's main partners.
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The services of the company include the development of health care products and services, medicines, and vaccines. The main activities of Pfizer are to identify the demands of the customers in the healthcare industry and develop products to improve the lives of the people. The development of innovative health care products to improve the lives of people is also another important activity of Pfizer.
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Pfizer develops the company's value proposition with the help of developing new and innovative products. The company meets the requirements and needs of the customers by developing medicine, vaccine, and other health care services. Generating life-saving drugs and vaccines for infectious diseases and others, the company meets the customers' demands. Thereby it has increased the value proposition of the company.
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The company maintains its customer relationship by meeting the expectations and needs of the customers. Delivering high-quality products to the customers, the leaders of Pfizer try to meet the customer's expectations. As a result, it helps the company maintain its customer relationship.
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The segmentation of Pfizer is done based on the needs and preferences of the customers. Medicines, vaccines, and other healthcare services are developed for customers of different demographics. People from all age groups, sex, and gender are delivered the services of Pfizer. The company manufactures the products and services based on the health issues, new diseases, and demands of the new medicines and vaccines.
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Key resources
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Channels
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The resources of Pfizer include its employees, innovators, and investors. The employees and managers innovate new ideas to develop unique health care products and services.
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The supply chain has been effectively developed in Pfizer. Through the robust supply chain management system, the leaders of Pfizer try to maintain the supply channels of the company.
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Cost structure
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Revenue streams
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The company's cost structure depends on the company's operational expenses. The pricing strategy is set by measuring the operational cost and the pricing strategy of the rival companies. The prices of the products are set above the operational cost and below the prices of the rival companies. Thus, the cost structure of the company is maintained.
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The revenue collection of Pfizer as per 2021 financial data has been estimated to be 81 billion dollars. With the innovative product and service development, the company has been able to generate a good amount of revenue collection. It has met the growth and success level of the company.
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(Source: Pfizer 2022; Eisele 2021)
According to the Blue Ocean Strategy, an organization creates a market for the products in which the organization faces low competition and low pressure to set a particular price (Dvorak and Razova 2018). By successfully applying the 'Blue Ocean Strategy,' the success of Pfizer has been greatly perceived. As per the application of Blue Ocean frameworks and tools such as value curve and strategy canvas, competitive opposition of the company has been identified in the following:
Strategy canvas
The Strategy Canvas tool refers to a central tool that Renee Mauborgne and Chan Kim developed. Using this framework, business organization leaders can develop a blue or sin strategy to increase the company's competitive advantage. This is a graphical presentation in which the organizational leaders can identify the existing strategic position and future prospects that the company can perceive (Khanmohammadi, Zandieh, and Tayebi, 2019). Through the horizontal axis of the model, the range of different factors that Pfizer can compete with other rival companies in the biopharmaceutical industry and also can identify the factors the company needs to invest in. The vertical axis can help the leaders capture the areas of competing factors through which the company can provide various offerings to the customers.
Using this strategy canvas, Pfizer can identify the factors like innovative product development, high-quality best medicines, and vaccine development through which it can compete with others. It also highlights the areas the company can invest some financial support or technical support to improve those areas. The company can also invest in its R&D areas like Vedanta, Homology, ESSA, and Trillium with the promise to develop unique and creative processes to enhance the resources and capabilities of the company (Eisele 2021). It will thereby help the company breakthroughs of the patients suffering from various health issues. The strategy Canvas tool indicates two main purposes.
With the help of this tool, the company can capture information about its current position in the market space that can enable the customers to see the areas it competes in as well as invest in the market. In addition, it also highlights the areas where the customers receive various services from the company.
One of its competitors of Pfizer is Roche Holding, also an international level Healthcare service providing companies that deliver various treatments and drugs in the areas of immunology, infectious disease, cardiovascular, neuroscience, oncology, and respiratory. The revenue collection of the company is around 62 billion dollars (Eisele 2021). And the market capitalization of the company is 344 billion dollars. By understanding this position of the competitor, the company can make effective investments in various areas for developing its product quality and service-providing facilities.
Apart from that, the strategic position of the rival companies can be identified through this model, which will help the company make strategic investments. Henceforth, the product development process becomes as per the customers' requirements. It can also help the company in waste in different Healthcare areas by developing the scientific expertise and development of clinical-stage assets (Eisele 2021). With the strategy canvas, the leaders of Pfizer can understand the profiles of the competitors, their strategies, cost structure, and the factors that can provide an offering level to the customers to get the services from their company. Therefore, it helps the company make appropriate strategies regarding the customer requirements, market trends, and competitors' positions (Khanmohammadi, Zandieh, and Tayebi 2019).
The major investments of the company that have increased its value include investments of 60 million dollars for homology medicine development to treat rare genetic diseases with prominent animate needs of medical services. Ten million dollars investments in a British Columbia-based ESSA pharma to improve prostate cancer treatment. Twenty-five million dollars have been invested in Cambridge-based Trillium therapeutic to develop innovative cancer treatment theories (Eisele 2021). These investments have been made to increase its competitive advantage and broaden the health care service facilities in the company to fulfill many customers and meet their needs and requirements regarding medicines and vaccines (Khanmohammadi, Zandieh, and Tayebi 2019).
Value curve
The value curve strategy tool in the Blue Ocean Strategy is a diagram in which the value of the products or services of a company is created. This graphical presentation shows how the organization can develop New Market areas increasing the value of the products to the customers for competing against the rival companies (Carton 2020). For example, the health care products of Pfizer were developed to include various medicines and vaccines related to oncology, infectious disease, and others. The company's most valuable service was the mRNA vaccine for controlling the spread of the covid-19 virus. The company develops many more medicines, treatments, and vaccines to advance the well-being and lives of people. This is how by creating innovation and creativity in the development of medicines and vaccines, the company has achieved the great value of products to the customers, which has increased its competitive advantage in the market.
The main areas of focus of the company are oncology, vaccines, rare diseases, internal medicine, inflammation and immunology, and hospital. The investments are also provided to these areas to enhance the company's biotechnology services that can also develop the satisfaction of the customers by giving them the best quality medicines and vaccines. This is a crucial strategy for the company to increase its value and compete against its rivals (Carton 2020). With the help of the value curve tool, the company has been able to identify the factors that can meet the customers' expectations and demands regarding the medicines. This is how it has increased its value and competitive advantage in the market, meeting all the requirements of the customers and improving their lives with biopharmaceutical services.
Conclusion
Throughout the entire discussion, it can be concluded that the company has a huge and robust system that has helped the company grow and develop. The company invest are use amount in biotechnology innovation to enhance the lives of people by providing the best quality health care products and services. The continuous innovation process in the company has helped it become a leading player in the biopharmaceutical industry. It also has a huge connection with its partners that help the company develop the products effectively and deliver them to the patients to enhance they are well-being and health (Eisele 2021). The different key drivers of innovation have a huge contribution to the continuous improvement process in the company.
The investments in the biotechnology field have helped Pfizer ensure the sustainability and innovation capabilities of the company, which can drive clinical development with high-quality products and services. These have helped them face the most challenging health issue in recent time, Covid-19. The developed innovative pharmaceutical programs of the company have also had a huge influence on enhancing its path for future strategic development. With a continuous entrepreneurial vision and business model, the company has also increased its competitive advantage to sustain itself in this competitive market.
Using strategy canvas and value curves, Pfizer has become highly advanced in meeting the successful position. The key drivers of innovation for the development and success of Pfizer have been shown with the help of the mind mapping tool. It has effectively shown the main areas of innovation the company uses. Various other frameworks and strategies have also been used to identify the competitive advantage of the company, its entrepreneurial vision, and business strategies which have helped Pfizer become a leading company in the pharmaceutical industry.
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