Case Study Description of Leerink Swann & Co.: Creating Competitive Advantage
In the spring of 2005, CEO Jeff Leerink has called a meeting of the executive committee to formulate Leerink Swann's growth strategy over the next five years so that it accomplishes three goals: expand into a new business, reinforce the firm's legacy businesses, and maximize the synergies between different parts of the firm. Covers the history of the boutique investment bank, including the nature and source of its personnel and culture, the development of its competitive strategy, the leadership style of its founder, and the development of each department, product, and function.
Swot Analysis of "Leerink Swann & Co.: Creating Competitive Advantage" written by Boris Groysberg, Andrew N. McLean includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Leerink Swann facing as an external strategic factors. Some of the topics covered in Leerink Swann & Co.: Creating Competitive Advantage case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy, Leadership, Organizational culture, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Leerink Swann & Co.: Creating Competitive Advantage casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, geopolitical disruptions, increasing energy prices, there is backlash against globalization,
increasing commodity prices, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Leerink Swann & Co.: Creating Competitive Advantage
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leerink Swann & Co.: Creating Competitive Advantage case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Leerink Swann, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Leerink Swann operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Leerink Swann & Co.: Creating Competitive Advantage can be done for the following purposes –
1. Strategic planning using facts provided in Leerink Swann & Co.: Creating Competitive Advantage case study
2. Improving business portfolio management of Leerink Swann
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Leerink Swann
Strengths Leerink Swann & Co.: Creating Competitive Advantage | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Leerink Swann in Leerink Swann & Co.: Creating Competitive Advantage Harvard Business Review case study are -
Highly skilled collaborators
– Leerink Swann has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Leerink Swann & Co.: Creating Competitive Advantage HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Organizational Development industry
– Leerink Swann & Co.: Creating Competitive Advantage firm has clearly differentiated products in the market place. This has enabled Leerink Swann to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Leerink Swann to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Leerink Swann has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Leerink Swann has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Leerink Swann is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Leerink Swann is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Leerink Swann is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Leerink Swann & Co.: Creating Competitive Advantage Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Leerink Swann is one of the leading recruiters in the industry. Managers in the Leerink Swann & Co.: Creating Competitive Advantage are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Leerink Swann are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Leerink Swann has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Leerink Swann & Co.: Creating Competitive Advantage - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Leerink Swann & Co.: Creating Competitive Advantage Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Leerink Swann has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Leerink Swann & Co.: Creating Competitive Advantage Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Leerink Swann in the sector have low bargaining power. Leerink Swann & Co.: Creating Competitive Advantage has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Leerink Swann to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Leerink Swann is present in almost all the verticals within the industry. This has provided firm in Leerink Swann & Co.: Creating Competitive Advantage case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Leerink Swann & Co.: Creating Competitive Advantage | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leerink Swann & Co.: Creating Competitive Advantage are -
No frontier risks strategy
– After analyzing the HBR case study Leerink Swann & Co.: Creating Competitive Advantage, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Leerink Swann has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study Leerink Swann & Co.: Creating Competitive Advantage that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Leerink Swann & Co.: Creating Competitive Advantage can leverage the sales team experience to cultivate customer relationships as Leerink Swann is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Leerink Swann & Co.: Creating Competitive Advantage, is just above the industry average. Leerink Swann needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Leerink Swann is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Leerink Swann needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Leerink Swann to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Leerink Swann is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Leerink Swann & Co.: Creating Competitive Advantage can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Leerink Swann supply chain. Even after few cautionary changes mentioned in the HBR case study - Leerink Swann & Co.: Creating Competitive Advantage, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Leerink Swann vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Boris Groysberg, Andrew N. McLean suggests that, Leerink Swann is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Leerink Swann, firm in the HBR case study Leerink Swann & Co.: Creating Competitive Advantage needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Leerink Swann has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Leerink Swann even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Leerink Swann products
– To increase the profitability and margins on the products, Leerink Swann needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Leerink Swann & Co.: Creating Competitive Advantage | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Leerink Swann & Co.: Creating Competitive Advantage are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Leerink Swann is facing challenges because of the dominance of functional experts in the organization. Leerink Swann & Co.: Creating Competitive Advantage case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Leerink Swann in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Manufacturing automation
– Leerink Swann can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Learning at scale
– Online learning technologies has now opened space for Leerink Swann to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Leerink Swann to increase its market reach. Leerink Swann will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Leerink Swann can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Leerink Swann can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Leerink Swann & Co.: Creating Competitive Advantage suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Leerink Swann can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Leerink Swann in the consumer business. Now Leerink Swann can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Leerink Swann can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Leerink Swann can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Leerink Swann has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Leerink Swann & Co.: Creating Competitive Advantage - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Leerink Swann to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Leerink Swann can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Leerink Swann & Co.: Creating Competitive Advantage External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leerink Swann & Co.: Creating Competitive Advantage are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Leerink Swann in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Leerink Swann is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Leerink Swann business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Leerink Swann can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Leerink Swann & Co.: Creating Competitive Advantage .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Leerink Swann in the Organizational Development sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Leerink Swann high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Leerink Swann
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Leerink Swann.
Consumer confidence and its impact on Leerink Swann demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Leerink Swann needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Leerink Swann with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Leerink Swann needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Leerink Swann can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Leerink Swann will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– Leerink Swann can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Leerink Swann & Co.: Creating Competitive Advantage Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Leerink Swann & Co.: Creating Competitive Advantage needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Leerink Swann & Co.: Creating Competitive Advantage is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Leerink Swann & Co.: Creating Competitive Advantage is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Leerink Swann & Co.: Creating Competitive Advantage is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Leerink Swann needs to make to build a sustainable competitive advantage.