Merck is one of the biggest Pharmaceutical Company whose main products include health care products. There was a big merger of company with Schering-Plough in November 1990.It operates in 59 countries around the world. Merck is mainly a research driven company and does a lot in research and development of health care products of consumers and animal products (Grose, 1995). The main researches and fields of Merck include infectious diseases, respiratory health, sun-care and women’s health products. Merck always make sure the affordability of its products by the customers. It is one of the few global pharmaceutical companies that not only provides health care facilities to humans but also works for the provision and development of animal products and health services.
Strengths
• A well-known and trusted name in pharmaceutical industry.
• A large department of research and development which conducts research and development regarding different health products and new ways of treating diseases.
• Global market capture gives a strong edge to the company.
• Strong market capture and Industry hold.
• Introduction of AIDS drug Isentress which is one of the first AIDS therapy drug.
• It has collaborated and made agreements with different companies and industries including Alectos to fight against different diseases and increase and diversify its research program to high level (Smith, 2002).
• Commitment to ethics and integrity makes its customers loyal. As a result it has already proven to be a customer’s loyal product globally.
• Claims to be the second largest pharmaceutical company in the world.
Weaknesses
• The company had various controversies including the biggest problem and issue of VIOXX which had certain risks of heart attack and strokes and as a result the company had to pay a sum of 4.85 billion $ to the family members of the people who were injured of died by the use of drug (Leong, 2007).
• Provision of limited confidence to the investors of the firms.
• The liquidity of the company is low and the expenses on research and development are too high.
• Has faced serious charges by the Government due to violations of rules and regulations and thus loosing big finances on fines and on court charges.
Opportunities
• Merck can introduce high innovative products in the market because of its edge in research and development.
• The company can gain confidence and goodwill in the eyes of its customers and shareholders by donating in health care and charitable causes.
• The company has the Opportunity to develop and grow in more countries as it has been. Operating in 59 countries already.
• There can be a diversification of products and services after schering-plough merger as there will be more exposure and enhancement in research and development with the merger.
Threats
• Government regulations and actions may increase the threat of fines and loss of credibility as it’s been also happening in the past.
• It may face serious threat from other pharmaceutical competitors like Glaxo Smith which are also making great efforts in going globally and capturing markets.
• Patient’s expiries and charges by the government on the company for violations my increase if no measures is taken in near future.
References
• Grose, Vernon L. (1995). "Your Next Airline Flight: Worth the Risk?" Risk Management 42(4): 47-56,
• Leong, Wee Keat (2007). "Open books to open skies". Archived from the original on 2008-01-07. Retrieved 2007-10-12.
• Directory: (2007). World Airlines", Flight International, 2007-04-03, p. 77.
• Smith, M. J. (2002). the airline encyclopedia, 1909-2000. Scarecrow Press