The paper "Wyeth Pharmaceuticals Analysis" is an exceptional example of a Business case study. Sine 2007, the company has been facing several challenges that hurt the revenue collection and profitability of the company. The productivity of the company has been plummeting and this has been a serious concern to the company. The product pipeline of the company was also drying due to the drop in profitability. The company failed to introduce new products in the market (Oliver, 2). This is because the introduction of new products in the market requires a lot of investments.
A lot of research is also required to develop a new drug and the drop in profitability of the company cannot support it. It is also important to note that the company is also facing a lot of competition in the market. This is due to the rules on the development of generic drugs. The company lacks an international patent which impacts negatively on the products of the company. This is because it affects the profitability of the company on the i8nternational scene. The main competitors of the company were mainly based in India and China at the international level. Other companies were also allowed to develop the same products as that of the company and sell it in the international market.
This is a problem also increased competition from the Indian and Chinese firms. The patent for two of its drugs that generate a high amount of revenue was also coming to an end. The two drugs were top performers in the company in terms of revenue generation. On the other hand, a competing firm has already begun the process of developing generic drugs.
This is an indication that the company is likely to lose more profit and market share. The company thus decided to put in place measures that will ensure that it reduces the operation costs by 25% (Oliver, 3). This is to ensure that it can continue operating. The measures have led to the reduction of production in all the production plants of the company.
ReferencesOliver, Rebecca. Wyeth Pharmaceuticals in 2009: Operational transformation. University of Virginia, Darden business publishing.