Analysis of Pfizers Profits - Case Study Example

As yet another example of the focus that the firm had on the development and introduction of runaway successes such as Lipitor, the firm had positioned itself as primarily a research and development organization that was hopefully able to introduce profitable drugs into the market regularly as a means of ensuring that the profitability and cash flow of the company stayed intact.

However, this positioning strategy was out of sync with market demands because the rapidly evolving nature of other competitors meant that lower-cost research and development was being performed by a host of competitors; thereby greatly reducing the profit margin and potential profit margins that such a runaway discovery such as Lipitor could yield. As a way to formulate strategy, the firm sought to integrate OTC markets and generic branding into its repertoire; however, the main money supply for the firm was still tasked with developing new drug lines.

This of course did not support the strategic vision that leadership espoused. Though the strategic vision was sound, the lack of funding meant that it was not fully able to respond to the markets and the completive environment in which it hoped to compete.