Vision and Mission Statement of Amgen
Mission: The mission statement of the company is “To Serve Patients”
Vision: The vision of the company is “Amgen strives to serve patients by transforming the promise of science and biotechnology into therapies that have the power to restore health or save lives”. In every step, the mission and vision are derived by values and beliefs that company hold for the business field and current world (Amgen 2022)..
Amgen Situation Analysis:
The company is leading biotechnology company that was pioneered in human innovation and manufacturing drugs. The situational analysis suggested that highly successful at go to market strategies for its products. It has a very strong cash flow along with high quality control that is backed by skilled workforce (Global data 2022). On the other hand, no specific companies currently can beat the market reach of this company because inventing industry-leading technologies to develop and manufacture biologic medications are unique thing that currently conferred by this company. Hence, currently company is instable situation but experienced limited skilled staffs that can compete with high company skills.
Industry Structure and economic feature
The company is a bio medication company that has a product based and research and development base. The researchers working in the research and development focused on innovation while product-based sector focused on quality control before delivering it to the consumer (Guha 2013). In terms of economic features, this company has a high profit margin for constantly becoming number one biotechnology company. For example, it is highly stable company with per year revenue with 2,598 crores USD (Global data 2022). Amgen annual revenue for 2019 was $23.362B, a 1.62% decline from 2018 (Rein et al., 2019).
Amgen Strategic) Business Level Strategies:
The R&D organization aims to discover, develop and deliver life changing medicines to patients everywhere compared to other companies in market place (Moşteanu 2020). Amgen focuses on areas of high unmet medical need and leverages its expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. The current strategy is that appropriate pharmaceutical innovation in the industry that will save lives while unique to other products.
Corporate Level Strategies:
Apart from R & D segment, this organisation has few strategic pillars as corporate level of strategy such as 1) Healthy People 2) Healthy Society, 3) Healthy Planet, and 4) A Healthy Amgen. Hence, company use organic products with high level of eco-friendly equipment in order comply with corporate social responsibility (Song, Wang and Zhang 2020). The company is currently moving towards environmental sustainability and healing through their products in order to reach the total pharmaceutical industry around the globe (Corona et al. 2019). Company is well-positioned to grow revenues through a declining pricing environment (Agarwal et al. 2021).
Competitive Analysis and Advantage in the industry:
The company experienced highly competitive advantage compared to other companies. For example, this company is leading in biotech industry that intensely competitive driven by R&D innovation. However, every innovative product in the company that inclined towards innovation and quality contributed to competitive advantage. For example, Amgen has several recently FDA approved drugs that are expected to have double-digit growth this year that will bolster the company’s already strong cash flow. Amgen has margin in the industry at 52% and they have long lasting patent to stand with other individuals (Agarwal et al. 2022).
SWOT Analysis
Strengths ii) Weaknesses iii) Opportunities iv) Threats
| · Amgen has strong free cash flows· They have a track record of highly integrating technology companies in the past few years.· Automation of activities brought consistency of quality to Amgen products. |
· Limited expansion in adjacent product segments.· The investment in research and development is below the fastest-growing players· The profitability ratio and net contribution % of Amgen are below the industry average (Boni and Sammut 2019).· Limited success outside core business and it has faced challenged in moving to others products segments with its present culture. |
| Opportunities:· New environmental policies must be developed for all the players in the industry.· Organisation’s core competencies can be success a in similar others products field. A comparative example could be GE healthcare research helped it in developing better oil drilling machines.· The lower inflation rate brings more stability in the market, enable credit lower interest to customers (Mavrommati et al. 2022).· Decreasing cost of transportation because it can reduce shipping prices and bring down the overall cost of the products. It will enable the firm to maintain its loyal customers with great service and lure new customers. |
Threats:· A company is operating in numerous countries it is exposed to currency fluctuations· Rising pay level $15 an hour and increase prices in the China can lead to serious pressure Dustman(Dustmann et al. 2022).· Shortage of skilled workforce in certain global market represents a threat to steady growth.· Liability laws in different countries may be different and the company may experience different changes in the policies in those markets. |
PESTLE Analysis
| Political analysis |
Amgen Inc. experienced long-term profitability in certain countries but politically it may experience distress. The common political factors that can impact the revenue and identity are be high level of corruption in Biotechnology industry by government, risk of military invasion, legal framework for contract enforcement and power imbalance with political parties (Gu 2021). |
| Economic Factors |
The competitive norms impact the competitive advantage of company. However, the company often able to establish identity based on back-to-back high revenue (Roy and Rhim 2022). Amgen Inc. can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as consumer rate, inflation and industry economic indicator and industry growth. |
| Social factors |
The shared beliefs and attitude of population play fundamental role. In this case, they have developed a strong identity based on their vision and mission of the company. Since the company focused on Biotechnology industry consumers, their innovative approaches towards health and wellbeing may improve their revenue (Clarke and Kitney 2020). |
| Technological factors |
In the last 5 years the industry has been transforming really fast with various innovation in pharmaceutical industry. However, high technology management cost as well as limited eco friendly production may affect quality of the products (Shin et al. 2019). |
| Environmental Factors |
Different markets have different norms. They mostly focused on corporate social responsibility which reflected in healthy people, healthy human, health planet and well-being. |
| Legal Factors |
The legal framework is robust enough to protect the intellectual property rights of an organisation. Since the company has exposure to many countries, the inconsistent Employment law, health and safety law. |
Target Market Analysis of Amgen
Demographic Characteristics of the Market:
These pharmaceutical firms mostly focused on the biotechnological industry. Pharmaceutical firms are engaged in the discovery, manufacturing, and marketing of legal drugs, and biologics. The products are made for both humans and animals that can improve the prevalence and incidence rate of disease and illness.
Demographic Characteristics of the Market:
Patients and healthcare professionals (HCPs) are the major target market. Since patients is the primary target markets, the industry will grow to bring creativity as well as efficiency in drugs and other pharmaceutical products (Krendyukov and Nasy 2020).
Psychological Characteristics of the Market:
The pharmaceutical industry is motivated by the single goal of increasing the sales of a company's products. In this case, more illness and diseases in the industry will lead to high level of innovative drugs as well as technology. Hence, this market is driven by the psychological distress and health-related beliefs of the patients and population towards drugs (Farsi 2021). The more infection or disease will occur, the pharmaceutical industry will grow.
Behaviors of the Target Market:
The consumer behaviour is the major driver. In current era, the patients were looking for innovative drugs and efficacy drugs or products that can be environmentally sustainable as well as eco-friendly. Hence, Pharmaceutical analysis is mainly focussed in drug analyses, in raw materials and pharmaceutical formulations, involving the determination of active components, impurities, excipients, content uniformity.
Strategies Appealing to Market
Amgen’s “biology first” approach explores complex molecular pathways of disease before determining what type of medicine is most likely to deliver optimal effectiveness and safety
Marketing Mix of Amgen
Product Strategy (Product Mix):
Amgen is committed to unlocking the potential of biology for patients suffering from serious illnesses by discovering, developing, manufacturing, and delivering innovative human therapeutics (Statements 2019). Hence, in this case, the product is mostly focused on improved packaging and the development of drugs that must be FDA-approved.
Pricing Strategy:
Pricing is based on their products according to the value they deliver. In this case, the pricing was developed based on efficacy and drug packing (Kabir, Moreino, and Sharif Siam 2019). The company invested nearly $20 billion* in R&D in order to improve prices.
Promotional/ Advertising Plan:
The promotional advertisement is done through conferences and Tv based advertisements as well as collaboration with other health care settings.
Amgen Competitive Analysis
4Ps’ comparisons with competitors:
They have high competitors in pricing and promotion. Pricing decisions impacting our product portfolio.
Product:
compared to other companies, they have high innovation in molecular genetics and solution-based drugs.
Price:
The current pricing is 273.88 based on yearly revenue.
Place:
The market research is United states but also the products were shipped around the globe.
Promotion:
The promotion through human interactions is done.
Strength comparisons with competitors:
Amgen continues to shed new light on the molecular roots of disease and they became a global leader in human genetics with world-class manufacturing.
Weaknesses’ comparison with competitors:
Organization’s Competitive Advantage:
the burden of disease dictates innovation as they mostly focused on molecular root of the disease.
Key success factors:
- Amgen is an industry leader in next-generation biomanufacturing
- The company mostly focused on the continuous development of the research because quality control and a reliable supply of medicines are just as important as research and development (Dibner 2019).
- They have a strong corporate social responsibility that is mostly sustained towards transformative research.
Problems and Issues in Amgen’s Organization:
Amgen faces numerous risks. The most substantial risk is potential changes in government regulation. The biotech industry is highly regulated, which can result in certain products not making it to commercialization because of insufficient data form trials. Additionally, any potential changes in healthcare or tax law can greatly impact the business. Amgen also relies on third parties for materials, reimbursements, and drug companion products, which could affect the business if dramatically altered (Langer 2020). Lastly, Amgen is very dependent on its ability to develop new innovative products; if it is unable to do so then Amgen could incur large expenses
2344234
