Pfizer: An Environmental Threat To The Pharmaceutical Industry

The world is in a constant change, regardless to which type of business field examined, every commerce must adapt and overcome environmental threats. An environmental threat consist of any factor in the market, external to the marketing organization, that has the potential to negatively impact demand for the marketer 's product or service. These environmental threat might be a new competitor, the merger of two competitors, the introduction of a new brand product, development of new technology, legislative changes, or social and economic trends (Environmental threat, n.d.).

Pfizer is not immune to threats, these types of factors could become greatly affect the outcome of the company. Some of the daily operations within the company with the potential

This particular regulation and the process presents a significant obstacle for the pharmaceutical companies. Overall, government regulation of the drug sector has resulted in a longer, more-expensive product development process that favors treatments for rare illnesses. All approved drugs have been rigorously tested by the FDA to protect consumers from harmful or ineffective treatments. The Food and Drug Administration (FDA) regulates the drug sector very tightly, verifying that every drug is safe and effective before permitting it to reach the market. New drugs experience a lengthy testing period that may last 10 to 15 years before approval for sales. This process is designed to occur over a long period of time to ensure that only the safest and most effective drugs arrive on the market. There are regulatory challenges, competition and financial concerns associated with the research and development of new products. As a result of these challenges, drug manufacturers must be very resilient and financially stable in order to stay competitive in the marketplace. Regulations not only threaten to interfere with Pfizer 's international business, but are also forthcoming to its business in the United States. With the FDA having increased regulatory power, Pfizer 's cost will rise as it becomes more complicated to get new drug approvals and on the market, negatively affecting the revenue. Pfizer will

One of those particular circumstances is to have some manner of price control on prescription drugs. Price control is already in effect in several countries, these countries can accommodate price control because they can still make money from the regulated costs allowing for these companies to be able to cover the cost of making the low medications. A study was conducted by Dean-Baker, co-director of the Center for Economic and Policy Research, his results show " ...calculated that drug price controls could save Medicare between $24.8 and $58.3 billion annually. On the other hand, less revenue to pharmaceutical companies means less money devoted to research and development. A separate study, published in Managerial and Decision Economics in 2007, estimated that cutting prices by 40 to 50 percent in the U.S. will lead to between 30 and 60 percent fewer R&D projects being undertaken. Reduced investments in pharmaceutical R&D consequently results in reduced numbers of new drugs becoming available to patients. A 2009 study in Health Affairs calculated that as a result of fewer innovative pharmaceuticals being developed, average American life expectancy in 2060 would be around 2 years lower than it would otherwise have been"( Bailey, 2018).Throughout history, governments around the world have tried to control costs of goods and services. These