Thermo Fisher Scientific Situation Analysis
Thermo Fisher maintains dominant position in the market. The company have highly skilled workforce that is attained via training and learning programs. The company invests a large share in development and training of its employees that result in highly motivated workforce. Thermo Fisher has good track record of the innovation of the new products (Fern Fort University 2022). The company has the strong base of the reliable suppliers of the raw materials. The company has strong dealer community, strong brand portfolio, high level of satisfaction of the customer and others.
Industry Structure and economic feature
Thermo Fisher are improving life for patients that protect the climate of the world and keeping the people safe. Customers are asking for innovative solutions that will improve their life. Services and products of the company are sold under the brands of Thermo Fisher. It will enable the customers to push the science and technology a step beyond (Thermofisher 2022a). Total revenue of the Thermo Fisher has increased from $6.55 billion in Q1 2020 to $10.81 billion in Q1 2021 that marks the 65.04% growth in yearly basis.
Thermo Fisher Scientific Strategic
Business level strategies
The business level strategy of the company is to enable the customers to make the world healthier, safer and cleaner. The company will deliver services and products to the customers that will help them to manage their goals along with reduction of the environmental impact. The products and services that are provided to the customers will help them to manage greatest challenges like curing diseases, protection of the environment, and keeping the public safe. The business strategy of the company will help the Thermo Fisher Scientific to achieve the goal of the company (Thermofisher 2022b). The company focuses on increased efficiency and optimizing the resources via usage of the Practical Process Improvement Business System and invests in the technologies and products that lead to reduction of the energy. The business level strategy of the company assists the company to achieve perfect score in the Disability Equality Index and Corporate Equality Index in 2018. They achieved the Women’s choice award as the best company for the women. The company makes investment to improve the accessibility of STEM education.
Corporate level strategies
The corporate level strategy of Thermo Fisher Scientific is reflecting the commitment of the company to humanity. The company must be committed to the stakeholders, social, environmental and governance issues. The Corporate Social responsibility approach issued by the company that is aligned with the model of business, values and strategies (Thermofisher 2022a).
Competitive analysis and advantage in the industry
Thermo Fisher is one of the major firms in the Medical Laboratories and Research. The company is listed in the New York stock exchange and it has a market cap 68.37B USD. The advantage of the company in the industry is innovation of the new products and services, building capacities and spending money on research and development and others (Investing 2022). The company has efficient chain of supply with various suppliers, experimenting with the design of the products.
SWOT analysis
SWOT analysis is the process that will assist the company to regulate its status in the industry. The strengths of Thermo Fisher are expected advantages of the company that is related to acquisition of Dionex and Phadia and others. The other strengths of the company are introduction of Orbitrap Mass Spectrometry Platform that will assist in increasing the sales and revenue, over 39000 trained employees, strong financial position. The weakness of the company is increased dependence on pharmaceutical, restricted brand recall (Fern Fort University 2022). There are several opportunities of the company like increase revenue for the countries like China, India and South Africa; improved capabilities of the company in the technologies; strategic acquisition of the company. The threats are fluctuation of currency; healthcare reform legislation; variation in the regulation of the government.
PESTLE analysis
The political factors that have impacts on Thermo Fisher Scientific are developments that are stemming from the Brexit and US presidential election. There are variations in the governmental regulations that are related with healthcare. The economic factors impacting the Thermo Fisher Scientific are changes in the economic condition; affected stream of revenue via the allocation of the budget, exchange rate risk (Thermofisher 2022c). The social factors that have impacts on the company are altering attitude of the employee towards the healthcare, attitude of the society towards research; Technological factors are adaptation to the rapid change of the technology security and safety products. There are various legal factors that have severe impact on the company. This factor is compliance of Thermo Fisher Scientific with variety of laws and regulations. The environmental factor is condition of the climate and weather, recycling and pollution.
Target Market Analysis of Thermo Fisher Scientific
Demographic Characteristics of Market: The demographic characteristics of the market are helping the researchers, companies and the organizations to meet the issues and provide assistance in cancer therapies, cell-based therapies and others.
Psychological Characteristics of the market: Making a better place to live and work.
Behaviors of the target market: Behaviours of the target market will assist the company to innovate the products that will increase the status of the organization and improve the health and wellbeing of the society (IIDE 2022).
Strategies appealing to market: The strategies that are appealing to the market are segmentation of the products of the company into High end analytical tools like reagents, software, laboratory supplies, consumables and software. Thermo Fisher Scientific targets the customers in hospitals, research based organizations, pharmaceutical firms and diagnostic labs. The company acts as the world leader in the service of serving.
Marketing Mix of Thermo Fisher Scientific
Product Strategy: The product strategy of the Thermo Fisher is the production of the high-end analytical tools that includes reagents, software, services and consumables.
Pricing Strategy: The pricing strategy of the company is such that it improves the accessibility and affordability of the products to the customers and improves the health and wellbeing of the individual and society (IIDE 2022).
Promotional Plan: There are various promotional plans of the company in the industry. Thermo Fisher has maximum number of followers in LinkedIn. It assists in promotion of the products and services in the social media. Thermo Fisher has good E commerce strategies. It has a shop now option in the official website The advantage of the Ecommerce strategy is that it will help the customers to buy the products that will assist the company to stay in the market (IIDE 2022). The app of the Thermo Fisher Scientific delivers personalized recommendations on products, information, promotions that are catered in the area of interest of the user that is based on the behaviour patterns of the user, selection of the industry and workflows of interest. There are sever apps that are sponsored by the Thermo Fisher Scientific and available in the Play Store. They are Instrument Connect, ULcan CPE, DailyCalcs and others.
Thermo Fisher Scientific Competitive analysis
4P’s comparison with competitors: This will help to discuss the marketing strategy of the Thermo Fisher Scientific.
Product: It is the responsibility of the Thermo Fisher Scientifics to develop unique product design, improve the qualities that will help the company to stand out in the market. The factors that are considered during the production of the product strategy are variety, packaging, augmented services, quality, features, name of the brand and others.
Price: It is the responsibility of the Thermo Fisher Scientific to focus on the credit terms, period of payment, list price and discounts during pricing. In the price penetration strategy, the company must reduce the price than other competitors in the market. Discounted pricing will help the company to win the market (Thermofisher 2022c).
Place: The place strategy of the company should be such that it will improve the accessibility of its products and services to all the people who need it.
Promotion: The above the line promotion options for Thermo Fisher Scientific are- television, radio and print advertising. Below the line promotion options are- catalogues, tradeshows and direct mail campaigns.
Strength’s comparison with the competitors: Thermo Fisher Scientific has financial track record, large geographical presence, good online presence, expansion via acquisition, presence of emerging market.
Weaknesses’ comparison with the competitor: huge reliance of the company on technology, dependence on the third-party package delivery services and others.
Organization’s competitive advantage: The advantages are growth of the emerging market, emerging business of the healthcare, managing the diseases via innovative technologies.
Key Success factors: Marketing initiative of the company highlights the brands to the customers.
Problems and Issues in Thermo Fisher Scientific’s Organization: huge reliance of the company on technology, dependence on the third-party package delivery services and others.
References:
Fern Fort University (2022) Thermo Fisher Scientific SWOT Anaysis/Matrix. Available at: http://fernfortuniversity.com/term-papers/swot/1433/164-thermo-fisher-scientific.php. (Accessed: January 19, 2023).
IIDE (2022). Precise Marketing Strategy of Thermo Fisher Scientific- With STP Analysis Available at: https://iide.co/case-studies/marketing-strategy-of-thermo-fisher-scientific/ (Accessed: January 19, 2023).
Investing (2022). Thermo Fisher Scientific Inc (TMO)Available at: https://in.investing.com/equities/thermo-fisher-sc-financial-summary (Accessed: January 19, 2023).
Thermofisher (2022a) Home, Thermo Fisher Scientific. Available at: https://corporate.thermofisher.com/content/tfcorpsite/us/en/index/corporate-social-responsibility/mission.html#:~:text=Everything%20we%20do%20starts%20with,the%20world's%20most%20pressing%20issues. (Accessed: January 19, 2023).
Thermofisher (2022b) Our Approach. Available at: https://www.thermofisher.com/in/en/home/about-us/corporate-social-responsibility/approach.html. (Accessed: January 19, 2023).
Thermofisher (2022c) Thermo Fisher Scientific SWOT & PESTLE analysis. Available at: https://www.swotandpestle.com/thermo-fisher-scientific/. (Accessed: January 19, 2023).
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