SWOT: What Makes Merck & Co. Inc. Vulnerable and Strengths for Emerging Opportunities

SWOT Analysis on Merck & Co. Inc.
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SWOT Analysis on Merck & Co. Inc.
George Merck established Merck & Co. Inc. in January 1891. His primary objective was to distribute pharmaceutical products and chemicals in New York and its neighboring areas. In 1933, Merck & Co. Inc. opened its first research laboratory in Rahway, New Jersey (Merck, 2021). Indeed, its primary three divisions were applied research, pure research, and the institute for therapeutic research. Currently, Merck & Co. Inc. is one of the largest multinational pharmaceutical companies globally. The company deals with numerous products, such as vaccines, medicines, animal health products, and biological therapies. The paper focuses on Merck & Co. Inc.’s strengths, weaknesses, threats, and opportunities without forgetting to indicate its weaknesses that make the company more vulnerable and its strengths that can enable it to pursue emerging opportunities.
SWOT Analysis
Strengths
Merck & Co. Inc. has a reputable brand name developed over time in the pharmaceutical sector. The company is well-known for providing medicines to underprivileged communities in the United States of America (USA) and has a large product portfolio. Most importantly, Merck & Co. Inc. has excellent research and development (R&D) facilities. The pharmaceutical company offers its products in different parts of the world, such as Asia, Latin America, Europe, and Africa (Abebe, 2019). Additionally, it has loyal customers and a strong workforce of more than 40,000 employees.
Weaknesses
The pharmaceutical company encounters problems associated with the production and sale of fake medicines, which can ruin its brand reputation. Merck & Co. Inc. suffers from poor financial planning. Moreover, the high fines and charges introduced by the government for companies that violate established regulations in the pharmaceutical industry pose a significant financial risk to the firm. Merck & Co. Inc. has not been able to enter various emerging economies with high potential markets. Although the company spends more money on R&D, it does not gain a competitive advantage from product innovation compared to its competitors, such as Pfizer, GSK, Bausch Health, Eli Lilly, Johnson & Johnson, Bayer, Zoetis, and Sanofi.
Opportunities
Since Merck & Co. Inc. has excellent R&D facilities and resources, it can innovate pharmaceutical products. The firm’s customers have already gained confidence in its products due to the donations of medicines to underprivileged communities. In addition, Merck & Co. Inc. should venture into developing countries where there is significant potential for its pharmaceutical products. The company should consider merger and acquisition opportunities to enhance products diversification (Fortune, 2021). Furthermore, it can leverage available resources and expertise in the manufacture of pharmaceutical products to come up with sustainable solutions to problems encountered by many p...