1.1 :- Merck and Co’s dominant business is procurement because of vertical integration in chemical products.
The three activities performed along dominant business value chain is manufacturing, outbound logistics and sales.
The company has outsourced sales and customer service.
1.2 :- Analysis will focus on one brand Vesotec, a path breaking drug developed by Merck. Comapny seeks to develop technological development through Vesotec. This drug can be used to cure high blood pressure, diabetic kidney disease, and heart failure.
2.1:- Two financial indicators would be current ratio and gross margin for Merck. The company has current ratio of 178% in 2016 with increasing trend since 2014. It means that company is in good financial position and it can pay back the debt.
The gross margin for company is 65% in 2016, which is all time high since 2013. It means that company is profitable and in good health.
2.2:- The strategic indicator is the company’s ability to do strategic allainces. Merck and Bayer have come into $2.1 billion global co-development and co-commercialization agreement focused on soluble guanylate cyclase, modulators as therapeutic treatments for cardiovascular disease. This strategic alliance combines both firm’s complementary resources and capabilities together to maximize product potential.
3:- The company has achieved competitive advantage in term of fighting cardiovascular disease. In 2010, Merck was recognized as top pharma partner by Boston Consulting Group. The collaborations has greatly helped Merck expand its research and development pipelines and fuels its growth. It’s organization culture, flexibility and experiences in forming partnership are hard for its competitors to imitate.