Maersk Case Study

Group Members
Mehwish Ayub
Maham Mannan
Sobia Salman
Mariyum Durrani
Shafaq Rizwan

Industry Structure
Favorable

Moderate

Unfavorable

Remarks

Threat of new
entrents
(813)

Bargaining
power of buyers
(334)

No bargaining

Threat of
substitutes
(004)

High threat
from Chinese
medicines

Bargaining
power of
suppliers
(241)

High cost of
patents, unique
cost of firms

Intensity of
rivalry among
competition
(144)

High start up
cost
Already well
established
brands in
the market

Intense
Competition
from
Chinese
medicines
Increased
Japanese
competition

PEST ANALYSIS
Political
New regulations introduced; reducing Chinese imports and lowering the threat
of substitutes for the customer.
Favorable for the industry
Social
Increase in aging population; more usage of medicine required in the elderly
age. Might encourage new entrants, lowering power of buyers, increase the
threat of substitutes and rivalry. Plus, increasing aging population might not
effect the bargaining power of buyers.
Therefore, this might be unfavorable to the industry
Technological
As the development in technology is rapid, the R&D cost might decrease.
Furthermore; advanced technology might result in more innovative products.
Therefore; this might have a favorable effect on the industry

SWOT
STRENGTHS

WEAKNESSES
1.Loss of patents before the expiry date

1. Merck leads the highest market share

Due to the Change in Socioeconomics,
it is easier for western mega companies
to compete independently with
Japanese company
2. Increase in research and development
is the
strength for Merck
THREATS

OPPORTNITIUES

1. High cost of prescription drugs of

united states is the threat because it is
increasing import of drugs from Canada
at much lower cost.

1. Over aging is the opportunity because it

increases the consumption
of drugs, over 65 age the consumption is
three times more

2. Loss of patent protection could harm a

company's sales earnings

VALUE CHAIN
PRIMARY ACTIVITIES OF MERCK

Marketing their products through large distribution channel

Strong research and development

SUPPORT ACTIVITIES OF MERCK

Providing retirement benefits to employees

Up to date technology regarding development of new drugs

MERCK WORKS ON DIFFERENTIATION ADVANTAGE

REASONS:

Developing new drugs for cholesterol and high blood pressure

Targeting vast market through large distribution channel

Largest market share globally because of constant development of new drugs

GENERIC STRATEGIES

MERCK is focusing on differentiation as they have targeted large

market by merging with different pharmaceutical companies

MERCK also focuses on providing quality drugs regarding high

cholesterol and blood pressure so it has constantly invested in R
and D department.

It has also has achieved large market share globally because of

providing drugs through prescribed dealers and government
institutes.

IFE MATRIX

EFE Matrix

CPM Matrix

Space Matrix