Merk Case analysis

Topics: Pharmacology, Generic drug, Globalization Pages: 3 (658 words) Published: July 24, 2014
Merck case analysis
Follow this format, provide *brief* answers. 1. External (use PESTEL framework) - What are Merck's opportunities and threats? 2. Internal (use VRIO framework)- what are Merck's strengths & weaknesses? 3. What is Merck's performance trend? 4. What strategic actions can Merck take to gain and sustain a competitive advantage in the pharmaceutical industry and why? 1.Merck’s opportunities and threats PESTEL FRAMEWORK

-Threats
A lot of competition from piers
Expiring patents
Outdated technology
Recall of drugs such as (VIOXX) can hurt the company brand -Opportunities
Broad-based medical innovation, technologies and businesses across the spectrum of health care They are entering health market for undeveloped poor countries Global company
Brand is recognized worldwide

Pestel framework
Political Factors
-Corporate responsible company
-Political factors can cause issues with patented drugs
-Who is in office can affect the growth of a pharmaceutical company specially here in the USA -Government can limit the price the company wants to put on their drugs (price needs to be reasonable Economic Factors

-Company growth, inflation rates, can affect Merck’s performance -Company globalization is a major opportunity for Merck
-
Social Factors
-Very ethical company
-Operate openly and they try to be a company full of integrity -Safeguard individual privacy through a global privacy program Technological Factors
-Leading biotech innovator
-Ahead of other companies in developing new drugs, try to keep that biotech edge -Billions of dollars are spent yearly to discover new drugs and treatments. -Research and Technology company
Environmental Factors
-Anti-dumping laws are enforced
Legal Factors
-Company complies with all applicable laws and regulations globally -Anti- dumping laws

2.internal (Strengths & weaknesses) VRIO Analysis
Strengths
-The brand MERCK is very strong within...
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