Merck SWOT Analysis
Merck & Co. Inc., enlisted in NYSE as MRK, is one of the leading pharmaceutical companies that designs and manufactures drugs and vaccines for human as well as animal healthcare markets. The firm offers its drugs to wholesalers, govt agencies, healthcare providers, hospitals and retailers.
• A well renowned brand and a trusted name in the pharmaceutical industry.
• Ranked as 85 in Fortune 500 list. (2010)
• Ranked as 294 in Fortune Global 500 list. (2010)
• It employs approximately 100,000 people. (2010)
• A vast diversified product portfolio in pharmaceuticals.
• It has various patient assistance programs in U.S. to help the people who are unable to afford the medical treatment in terms of medicine.
• The firm merged with one of its large competitors Schering-Plough, it was a reverse merger. (2009)
• It is a highly innovative firm which invests heavily in research and development.
• It has a world class reputation regarding its research in the pharmaceutical industry.
• The firm has widespread geographic presence.
• Operating margin of the firm is expanding at a rapid rate.
• The firm has robust in-house research capabilities that also make it a leader in designing new medical products.
• The firm has experienced a high level growth in its cardiovascular products.
• The firm provides funding for AIDS in Botswana. (2010)
• Alectos collaboration with Merck for developing medicine for Alzheimer’s disease.
• Customer loyalty is vital core strength for the firm.
• The firm also develops drugs for animals.
• The firm also provides products for household consumers.
• The firm faced lawsuits regarding the use of one of its products Vioxx, due to its liability of increased chances of giving the user a heart attack.
• The company provides limited confidence to the investor.
• The firm has a limited liquidity position as compared to most of its competitors.
• The firm can invest in strategic acquisitions that would provide long term production and vast geographic availability capabilities.
• The firm has opportunities of improving their products and gain confidence regarding the consumers.
• The firm can work in collaboration with its competitors and make agreements on terms that will work for the well being of the humanity.
• The firm can further diversify into biologics market through acquisitions.
• Patent expiries are a risk regarding the competition and the firm has to be on the lookout.
• Government regulations and conditions.
• Direct and Indirect competitors in the pharmaceutical industry.