History of Pfizer Pharmaceuticals
Pfizer Pharmaceuticals contains a vast history, stemming from its year of incorporation in 1849 by entrepreneurs Charles Pfizer and Charles Erhart (Pfizer, 2016). The initial capital of $2,500 was borrowed in 1849 in order to open a Brooklyn-based factory that catered directly to fine-chemicals business needs. The company’s management developed an expansion strategy to widen its product range with mass production. Their primary intention was to enhance the company’s overall efficiency.
In 1951, the firm began expansion into international markets that included Belgium, Brazil, Canada, England, and Panama (Pfizer, 2016). The firm strategically planned its incorporation of international markets. Once it selected and identified a prospective market, it immediately negotiated viable contracts with those governments. These contracts were intended to conduct quality business while maintaining a balance between the firm’s objectives and the market’s standards. The firm employed and trained local employees in the chosen international markets. In so doing, these new markets more readily accepted such a new culture. As a result, the firm could minimize the probability that international conflict would arise in the marketplace. The general acceptance in the new markets precipitated from a decentralized organizational strategy. This strategy introduced the concept of autonomy in a new and foreign culture to the international entities.
Pfizer Pharmaceuticals further invested in extensive research and development to enhance international growth (Pfizer, 2015). Resulting innovations facilitated the firm to attain productive competitive advantages in all marketplaces. For example, in 1998, the firm launched Viagra. This was a new product in the market that immediately garnered a substantial competitive edge for the company. Such an investment, and many others, is one of the primary reasons that Pfizer became one of the most prominent pharmaceutical companies in the world.
In 2001, Pfizer took over Warner-Lambert Company, one of the competing pharmaceutical firms. Following this strategic move, Pfizer was restructured into four groups, those being: Pfizer Pharmaceuticals Group, Warner-Lambert Consumer Group, Pfizer Animal Health Group, and Pfizer Global Research and Development (Pfizer, 2016). Each group reaped much success in its respected markets.
Annual revenues for Pfizer Pharmaceuticals Group exceeded $1 billion. Among the prescription drugs marketed by this group include Norvasc, Lipitor, Zoloft, Zithromax, Diflucan, and Viagra. The Warner-Lambert Consumer Group markets various of the leading consumer brands, including “over-the-counter healthcare mainstays,” such as Benadryl, Listerine, Visine, Rolaids, Dentyne, and Halls. They even maintain a substantial clout over Schick and Wilkinson Sword shaving products and Tetra fish food. Pfizer Animal Health Group is a world leader in medicines for pets and livestock. Finally, Pfizer Global R&D spends $4.5 billion a year to guide potential products through the product pipeline more efficiently and effectively. Because of these funds, at any given moment, Pfizer can produce more than 130 products (Pfizer, 2014; Pfizer, 2015; and Pfizer, 2016).
As demonstrated by its substantial resume, Pfizer Pharmaceuticals is a very successful company with an industry clout in almost every aspect of the pharmaceuticals marketplace. This results from a rich history of strategic decision-making and management. The management consists of various specializations in finance, marketing, research, and production. Currently, Pfizer implements a flat structure with the intention of stimulating communication and collaboration between the numerous divisions and staff members.