Competitive Rivalry

[Audio] As we mentioned earlier, the pharmaceutical industry is one of the most competitive industries in the world and is dominated by companies like GSK, Roche, Johnson & Johnson, and Novartis. These players' strong financial and revenue positions in the pharmaceutical industry will intensify competition at a global level, resulting in lower prices and decreased profitability. Thus, the competition between existing firms is stronger within the industry. Pfizer can tackle intense rivalry among its existing competitors in the pharmaceutical industry by establishing sustainable differentiation, collaborating with competitors like BioNTech to create a larger market instead of just competing for a small one, and focusing on new customers rather than trying to win existing ones from existing companies..

[Audio] The threat is alternative medicines and treatments to these drugs. There is no substitute for the product that are produced in the industry in which Pfizer operates, and no products can cure a person's health other than products from the pharmaceutical industry. These factors make substitute products a weaker force within the industry.However, within an industry, the threat of a substitute product is high because innovation is constantly replacing older products. Pfizer Inc. can tackle the Threat of Substitute By being more service-oriented than product-oriented, understanding the core needs of the customer rather than what the customer is purchasing and By increasing customer switching costs..

[Audio] The industry that has room for innovation is always inviting new entrants, but it poses no serious threat to big pharmaceutical companies like Pfizer. However, because of the extensive costs associated with manufacturing set up, , marketing and government regulations, the threat of new entrants is low. Pfizer is able to tackle this threat by developing new products and services. Pfizer Inc. is not only looking to attract new customers, but also to retain existing ones.Other than that, by spending money on research and development, new entrants are less likely to enter an industry where established players, such as Pfizer, set standards frequently. This reduces the windowfor new firms to make extraordinary profits, thereby discouraging them from entering the market..

[Audio] The number of suppliers in the industry where Pfizer operates is greater than the number of buyers. Consequently, suppliers have weaker bargaining power because they have less control over prices. The majority of companies in the pharmaceutical industry get their chemicals, equipment, and raw materials from multiple suppliers. Pfizer Inc.'s margins can be reduced when competitors gain a dominant position. The large suppliers use their negotiating power to extract higher prices from companies in the pharmaceutical sector. As a result of greater supplier bargaining power, Pfizer's profitability will be reduced.Pfizer can handle the bargaining power of the suppliers. By using multiple suppliers to build a more efficient supply chain, experimenting with different product designs using different materials so that if raw material prices increase, the company can switch to another one. Pfizer can benefit from developing close relationships with its suppliers that are mutually beneficial and whose business is dependent on Pfizer..

[Audio] The bargaining power of buyers is low in this industry since they have no control over the pricing of the products. In this industry, there is very high product differentiation, which means that it is impossible for buyers to find alternative producers of a particular product. This difficulty in switching makes the bargaining power of buyers a weaker force within the industry. Consumers insist on the quality of the products, so these consumers make frequent purchases. As a result, the price of products is set by companies, making the bargaining power of customers weaker. Pfizer can tackle the Bargaining Power of Buyers by focusing on innovation and differentiation to attract more customers. Product differentiation and product quality are important factors for customers, and by focusing on these factors, Pfizer will be able to attract a large number of customers, building a loyal customer base is the key to reducing the bargaining power of buyers, which can be done by marketing initiatives that establish brand loyalty and by developing economies of scale in order to gain a competitive advantage and sell at low prices to the low-income buyers in the industry. This will help the company attract many customers..