Pfizer and McDonald’s Comparison

Subject: Company Analysis
Pages: 2
Words: 614
Reading time:
3 min
Study level: College

Introduction

Both companies present a unique case regarding their position on the market, primarily due to their sheer size. However, there are glaring differences in the structure of their markets that create varied obstacles for the companies to overcome. The fast-food market is more closely described by a monopolistic competition model, yet Pfizer encounters stricter competition on the market for pharmaceutical products. Since many drugs have similar or identical effects, customers’ preferences are not as relevant, and the market appears more closer to perfect competition. Pfizer and McDonald’s seem to be highly profitable, with incomes of $41.9 bill. and $19.7 bill. during the past year, respectfully (McDonald’s Corporation, 2021; Pfizer, 2021). Rivaling companies continue to focus on similar goals and follow the example of Pfizer and McDonald’s in an attempt to gain a larger customer base.

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However, the year 2020 was more difficult for Mcdonald’s, while Pfizer’s income grew significantly. Due to the virus outbreak and lockdown that followed, McDonald’s had to deal with tanking demands (McDonald’s Corporation, 2021). In turn, Pfizer took the lead in vaccine development, which benefitted the company significantly, leading to an increase in revenue (Pfizer, 2021). Competition on the markets was impacted by the virus as well, although in a different manner. The fast-food market was declining severely during the middle of the year, and competitors shifted their focus to developing new strategies and ways to cope with such events (McDonald’s Corporation, 2021). In the meantime, the virus outbreak significantly increased the demand for many products on the drug market (Pfizer, 2021). The customer bases of Pfizer and McDonald’s remain similarly large, and their products appeal for many segments simultaneously.

Strategies and Initiatives for Efficiency, Profitability, and Sustainability

Being leaders of their respective markets, Pfizer and McDonald’s have a reputation of unsinkable flagships. However, they have to actively seek new ways to gain a competitive advantage if they are to remain profitable and sustainable. To do this, Pfizer invests heavily in R&D to discover new potential products that allow it to stay on the top of the market for pharmaceuticals. Throughout the past two years, the company significantly increased the success rates of its clinical product trials (Pfizer, 2021). In turn, McDonald’s focuses on the expansion of its locations throughout the globe and relies on its franchise as the main attraction for new customers. Even during the year of lockdowns, where most major food chains were forced to close their locations, McDonald’s opened nearly 1000 restaurants (McDonald’s Corporation, 2021). These two companies uphold their positions via different means, yet some of the parameters that signify success remain similar. For example, both firms heavily monitor their reputation and invest in their brand images.

Future Outlook and Investment Recommendation

These two companies exhibit strong potential for innovation and continue to grow on new products, as evident from their past strategical decisions. Therefore, to make their profits rise, both McDonald’s and Pfizer can explore new opportunities ahead of their competitors by investing in R&D. One of the primary trends in investors’ preferences is the sustainability of a company’s products and the “green” approach. This notion suggests that Pfizer and McDonald’s can obtain additional capital by adjusting their supply chains to become more eco-friendly. Moreover, companies continue to get more involved in political and social issues. It might be necessary for both firms to approach their involvement with higher caution, as it can be detrimental to their reputation. There are steps taken in this direction by both Pfizer and McDonald’s, as companies explicitly state in their annual reviews that sustainability is a critical measure of their success (McDonald’s Corporation, 2021; Pfizer, 2021). Investing in technologies that ensure high levels of sustainability is vital.

References

McDonald’s Corporation. (2021). Annual Report 2020. Web.

Pfizer. (2021). Pfizer 2020 Annual Review. Web.