PESTLE Analysis of Pfizer
Pfizer is a well-known company that makes medicine. During the pandemic, it became even more famous. This PESTLE Analysis of Pfizer will allow you to identify its political, economic, social, technological, legal, and environmental factors. These factors can influence the company’s growth in its market. So, it is important for its managers to carefully analyze these factors before making any crucial decision.
Pfizer started way back in 1849 when two cousins from Germany set it up in Brooklyn, New York. With all the good things it has done since then, we want to study the external things that have influenced Pfizer for the past 173 years. So, we’re going to do the PESTLE Analysis of Pfizer.
Pfizer is one of the biggest healthcare companies globally. They have over 78,500 employees worldwide and are in 52 countries, all trying to improve healthcare worldwide. Pfizer makes lots of different medicines. When COVID-19 came, they made a vaccine to fight it. Since then, everyone knows about Pfizer.
The company that makes medicine made a lot of money during the pandemic. Many people wanted Pfizer’s products, so they made a lot of profit. In 2021, they made 92% more money compared to last year.
Political Factors |PESTLE Analysis of Pfizer
Because Pfizer does business in many countries, it has to deal with different governments and how they work. So, before Pfizer decides to invest in other countries and be successful, they need to consider the political risks. When a new government takes over, they often bring in new rules and policies. If a country is not very stable in its politics, it can cause problems for Pfizer because these new governments might change how Pfizer works in that country.
When there are no rules and organizations to control things, it can be a big problem for a pharmaceutical company like Pfizer. Without these rules, everything can become messy, and it can hurt the company’s work. This happened when Pfizer made a deal with South Africa’s Biovac to make their COVID-19 vaccine.
Pfizer wanted to help make the pandemic vaccine in South Africa, but they couldn’t do the whole process because there weren’t enough rules and organizations there. So, they decided to bring the main vaccine parts from Europe and only do the final steps in South Africa.
Pfizer usually works in places where there are good rules to make things run smoothly. However, in some countries, there aren’t enough rules. So, if they work there, the way they make things can become messy and broken into pieces.
This makes it more expensive for Pfizer to make its stuff. So, they won’t make as much money, which is bad for the company. Also, when there are wars or takeovers in a country, it’s a problem for Pfizer. For instance, because of Russia invading Ukraine, Pfizer decided to stop putting money into Russia. This means they won’t make as much money in the future.
Pfizer has to watch the tax rules of different governments closely because if these rules change, it can directly affect Pfizer. Taxes are also an important source that governments use to share money fairly among people. Usually, governments have charged Pfizer less in taxes, even though Pfizer has made a lot more money. But in places where rich and poor people are very unequal, they might make Pfizer pay more in taxes. This higher tax can make Pfizer earn less money, which is not good for any organization.
Economic Factors | Pfizer PESTLE Analysis
Exchange rates are important because they make currencies go up or down in value. So, if the exchange rate keeps changing, it can mess up Pfizer’s investment plans because the value of money won’t stay the same. Economic tough times, like the big problem in the United States, can hurt any company’s growth. The drug-making business didn’t get hurt as much because they make important medicines, but Pfizer and a few other big drug companies still didn’t grow very fast during that hard time.
Besides that, when companies have to pay their workers more, it makes things more expensive. For example, when fewer people are available to work, the cost of paying workers goes up. This makes it cost more for Pfizer to make its stuff. So, they have to charge more for their products, and this can make them too expensive for people to buy. When things are too pricey, fewer people want them, and this means Pfizer makes less money.
Social Factors | PESTLE Analysis of Pfizer
It’s important to know about the way people in a culture or society live if you want to do well in the business world. Things like how people act, what they believe, and the kind of people who live there can help companies make their stuff in a way that’s right for the people who live there. This makes their products and services more meaningful to the customers.
How people live in a place can really affect how well a company does there. So, before a big company like Pfizer puts money into a new country, they need to look at the kind of people who live there. For instance, the World Health Organization says that people are more likely to get sick as they get older.
Pfizer should consider putting more money into countries with more older people, like Japan. This way, they can help more people who are sick and make more money. When a big company wants to do business in a new place, they should learn about how things work there. The way people do business and live their lives can be really different from one place to another. If a company doesn’t know the rules and values of a country, it can cause a lot of problems.
Pfizer, the medicine company, should do things the way each country likes. For example, some places might not like certain ads. To stay out of trouble and work well, Pfizer should hire local bosses and let them handle the company in each country.
Technological Factors | PESTLE Analysis of Pfizer
Technology has changed the way healthcare works. It can help doctors and nurses care for people and improve their lives, all while spending less money and doing their jobs better. We’re used to getting information and things quickly in our fast world. But sometimes, healthcare systems don’t use new technology as fast as they should.
There are many ways that technology affects how well Pfizer does. One challenge for Pfizer is that technology keeps changing. People want Pfizer to keep up with these changes. So, Pfizer needs to use new technology and the internet and be active on social media to stay competitive.
Pfizer realized how important it is to be on the internet, so they made a website with lots of info about their stuff and about the company itself. But another tech thing to think about is that Pfizer’s rivals might get better at tech stuff and be more innovative. If these competitors spend more on research and making new things, Pfizer might not do as well and could lose customers.
To deal with this problem, Pfizer used much of its money to research and make new things. In 2020, they spent more than 22% of the money they made on this. Pfizer was one of the top drug companies that put a lot of money into research and making new stuff.
Legal Factors | PESTLE Analysis of Pfizer
Governments create rules to make sure people’s rights are protected. If there aren’t good rules and laws, investors from other countries might be worried about investing in the industry. The way laws are made and followed differs in each country, so Pfizer should consider the legal stuff that might affect the company before it starts working in a new place.
Getting sued makes a company look bad, and they should do everything to avoid it. Breaking the law can lead to big fines and being banned forever. Pfizer’s future relies on many legal things, like the rules against treating people unfairly. These rules are important all around the world. To avoid problems, Pfizer needs to ensure they treat everyone fairly and don’t discriminate.
Pfizer understands that following the rules is really important. Their 2020 report said they want to hire more Latino, African American, Black, and Hispanic people by 2025. This will make Pfizer look good and get positive attention. Also, there are strong rules in the pharmaceutical industry, especially about patents. If Pfizer doesn’t take these rules seriously, it could hurt the company a lot.
Alnylam Pharmaceuticals has accused Pfizer of stealing their patents. This has become a big issue in the news and could harm Pfizer’s reputation. These kinds of problems can cost Pfizer a lot of money and make them look bad.
Environmental Factors | PESTLE Analysis of Pfizer
Nowadays, it’s really important for companies to be sustainable and not harm the environment. The government and groups that push for good practices are telling companies to follow eco-friendly rules. Climate change is a big deal that affects companies a lot. Because climate change makes natural disasters happen more often, Pfizer needs to make sure its way of getting things is flexible so that it won’t have problems with getting what it needs.
More and more greenhouse gases are causing big problems for the environment. To help, Pfizer can use clean and renewable ways to make medicine, so it won’t put out as many bad gases. Another thing that affects Pfizer’s sales is using products and packaging that are kind to the Earth. When the United Nations talked about goals for improving the world, using Earth-friendly things became a big deal.
To be liked by customers and have a good name in the market, Pfizer should use Earth-friendly ways to make and package their products. They understand how important it is to be kind to the environment to grow as a company. Pfizer is also telling its customers to be eco-friendly and reduce pollution. They are working with groups and the government to make healthcare better and healthier.
To Sum Up | PESTLE Analysis of Pfizer
Now that you’ve read this article, you can probably make a list of the big outside things that affect Pfizer, one of the top pharmaceutical companies. This PESTLE Analysis of Pfizer pointed out some of the political, money-related, people-related, tech-related, law-related, and Earth-related stuff that make a difference in how well Pfizer does.
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