Pfizer Case Study

955 Words4 Pages
1. Evaluate the trends affecting the cattle ranching industry Prices and costs of beef are a trending issue in the industry and are varied with production. The cost of beef has declined for the ranchers but remained high for the consumers. The prices for the calves turned out to be less than the cost of rising calves. Unfortunately, Ranchers had to change their strategy from focusing on making income to minimizing losses. Income was not as important as preventing losses. Unfortunately, the market share for beef fell by 27% between 1970-1997 and in 1997 with a 13.3% increase in new poultry products, new beef products only increased by 3.5%. Focusing on preventing losses would allow for a stable income. However, some of the smaller ranchers had to sell to their larger neighboring ranchers. Income was too low for these small ranchers to maintain business. Many ranchers were focused on seeking way to cut costs by reducing the amount of animal healthcare products purchased and switching to other alternatives that would lower costs. 2. To what degree is a high quality/premium price position a strength or liability during an industry downturn? What are the various ways Pfizer can handle this situation? A high quality/premium price position can be strong in an industry downturn because consumers will know that the beef is a good quality product and be willing to spend the money on it. The producers in the industry will gain enough revenue to survive during the industry downturn if nothing else goes wrong that may affect the quality or production of beef. On the other hand, the price position can also be a liability. What if consumers feel the price is too high and decide to cut down on purchasing beef? The ranchers will then take a hit, and with the industry downturn, will lose. Pfizer can change their costs for products. Since Ranchers are looking to cut

More about Pfizer Case Study

Open Document