Sample Thesis Paper
The threat of substitutes remains at a minimum for Pfizer in cases where Pfizer’s Viagra, Lipitor and Zoloft are concerned. However, such as Lilly USA’s Cialis and Bayer’s Levitra are gaining steady acceptance across consumers and this may lead to reduced sales of Pfizer’s iconic drugs in the future (Spark, 2009).
Also, pharmaceutical companies have begun to channel marketing efforts towards direct advertising to the consumers. Supplemented with a direct advertising strategy, an ever expanding array of pharmaceutical products serves to significantly increase the threat of substitutes to Pfizer. Patients are also choosing to opt for drug based treatment rather than surgical treatment, causing doctors to prescribe drugs more frequently (Carlson & Russ, 2007).
Buyer Power in the case of Pfizer remains significantly low since Pfizer is a drug that is often recommended by doctors in light of its exceptional track record. The buyer power in the case of Pfizer falls less into the hands of the consumers and more into the hands of the doctors who prescribe the drugs. In this regard, the reputation of Pfizer’s drugs acquires a highly significant position in the healthcare industry when ascertaining the Buyer Power in the healthcare industry case of Pfizer as a pharmaceutical company.
However, it is imperative to note that healthcare costs are rising alongside technological innovations and this has brought about an increased need for cheaper drugs and pharmaceutical products, hence causing pharmaceutical companies to produce cheaper drugs while attempting to generate increased revenues. Considering the fact that the influx of new drugs into the industry has suffered a decrease in the last few years, consumers are placed in a position where they have an apparently limited range of drugs to choose from, hence decreasing buyer power in the industry. It is therefore reasonable to conclude that the buyer power in the US healthcare industry is one that exists at a medium.