Case Study Description of Vistakon: 1 Day Acuvue Disposable Contact Lenses
Vistakon, an independent and entrepreneurial subsidiary of Johnson & Johnson, pioneered the production and marketing of disposable contact lenses with the 1987 launch of Acuvue, the first disposable extended-wear lens--a soft contact lens that patients wear for a period of less than two weeks and then abandon. By 1993, Acuvue was the leading brand of soft contact lens in the United States. In March 1994, Gary Kunkle, president of Vistakon, was presented with the test market results for an addition to the firm's product line, 1 Day Acuvue, the world's first daily disposable contact lens. The test market results raised a number of strategic issues relating to: 1) the positioning and pricing of the new daily wear disposable product; 2) cannibalization of the firm's existing extended-wear disposable lens; and 3) the mix of push and pull components required for the introductory marketing campaign to be effective in generating and coordinating demand from both eye-care professionals and consumers. In deciding how to proceed, Kunkle must evalute the risks associated with commencing an immediate launch with an unproven strategy as opposed to extending the test market.
Authors :: Alvin J. Silk, Bruce Isaacson, Marie Bell
Swot Analysis of "Vistakon: 1 Day Acuvue Disposable Contact Lenses" written by Alvin J. Silk, Bruce Isaacson, Marie Bell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Disposable Acuvue facing as an external strategic factors. Some of the topics covered in Vistakon: 1 Day Acuvue Disposable Contact Lenses case study are - Strategic Management Strategies, Market research and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Vistakon: 1 Day Acuvue Disposable Contact Lenses casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, talent flight as more people leaving formal jobs,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Vistakon: 1 Day Acuvue Disposable Contact Lenses
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Vistakon: 1 Day Acuvue Disposable Contact Lenses case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Disposable Acuvue, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Disposable Acuvue 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses can be done for the following purposes –
1. Strategic planning using facts provided in Vistakon: 1 Day Acuvue Disposable Contact Lenses case study
2. Improving business portfolio management of Disposable Acuvue
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Disposable Acuvue
Strengths Vistakon: 1 Day Acuvue Disposable Contact Lenses | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Disposable Acuvue in Vistakon: 1 Day Acuvue Disposable Contact Lenses Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Disposable Acuvue in the sector have low bargaining power. Vistakon: 1 Day Acuvue Disposable Contact Lenses has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Disposable Acuvue to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Disposable Acuvue has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Vistakon: 1 Day Acuvue Disposable Contact Lenses 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.
High brand equity
– Disposable Acuvue has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Disposable Acuvue to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Vistakon: 1 Day Acuvue Disposable Contact Lenses firm has clearly differentiated products in the market place. This has enabled Disposable Acuvue to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Disposable Acuvue to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Disposable Acuvue 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Sales & Marketing field
– Disposable Acuvue is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Disposable Acuvue in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Disposable Acuvue 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
- Disposable Acuvue 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 Disposable Acuvue is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Vistakon: 1 Day Acuvue Disposable Contact Lenses Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Disposable Acuvue is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Alvin J. Silk, Bruce Isaacson, Marie Bell can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Disposable Acuvue 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.
Successful track record of launching new products
– Disposable Acuvue has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Disposable Acuvue 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.
Superior customer experience
– The customer experience strategy of Disposable Acuvue in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Vistakon: 1 Day Acuvue Disposable Contact Lenses | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Vistakon: 1 Day Acuvue Disposable Contact Lenses are -
Aligning sales with marketing
– It come across in the case study Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses can leverage the sales team experience to cultivate customer relationships as Disposable Acuvue is planning to shift buying processes online.
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 Disposable Acuvue supply chain. Even after few cautionary changes mentioned in the HBR case study - Vistakon: 1 Day Acuvue Disposable Contact Lenses, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Disposable Acuvue vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Disposable Acuvue is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 bargaining power of channel partners
– Because of the regulatory requirements, Alvin J. Silk, Bruce Isaacson, Marie Bell suggests that, Disposable Acuvue 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Disposable Acuvue needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Disposable Acuvue 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. Disposable Acuvue 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.
Increasing silos among functional specialists
– The organizational structure of Disposable Acuvue is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Disposable Acuvue needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Disposable Acuvue to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Vistakon: 1 Day Acuvue Disposable Contact Lenses, in the dynamic environment Disposable Acuvue has struggled to respond to the nimble upstart competition. Disposable Acuvue has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Vistakon: 1 Day Acuvue Disposable Contact Lenses, is just above the industry average. Disposable Acuvue 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.
Skills based hiring
– The stress on hiring functional specialists at Disposable Acuvue has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Disposable Acuvue has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Vistakon: 1 Day Acuvue Disposable Contact Lenses should strive to include more intangible value offerings along with its core products and services.
Opportunities Vistakon: 1 Day Acuvue Disposable Contact Lenses | 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses are -
Creating value in data economy
– The success of analytics program of Disposable Acuvue has opened avenues for new revenue streams for the organization in the industry. This can help Disposable Acuvue to build a more holistic ecosystem as suggested in the Vistakon: 1 Day Acuvue Disposable Contact Lenses case study. Disposable Acuvue can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Disposable Acuvue is facing challenges because of the dominance of functional experts in the organization. Vistakon: 1 Day Acuvue Disposable Contact Lenses 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.
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. Disposable Acuvue can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Disposable Acuvue can use these opportunities to build new business models that can help the communities that Disposable Acuvue operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Manufacturing automation
– Disposable Acuvue can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Disposable Acuvue can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Vistakon: 1 Day Acuvue Disposable Contact Lenses, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Disposable Acuvue can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Disposable Acuvue 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 Sales & Marketing segment.
Better consumer reach
– The expansion of the 5G network will help Disposable Acuvue to increase its market reach. Disposable Acuvue 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Disposable Acuvue can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Disposable Acuvue can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Vistakon: 1 Day Acuvue Disposable Contact Lenses 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.
Using analytics as competitive advantage
– Disposable Acuvue 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Disposable Acuvue to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Disposable Acuvue in the consumer business. Now Disposable Acuvue can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Vistakon: 1 Day Acuvue Disposable Contact Lenses External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Vistakon: 1 Day Acuvue Disposable Contact Lenses are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Disposable Acuvue needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Disposable Acuvue in the Sales & Marketing industry. The Sales & Marketing 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.
Stagnating economy with rate increase
– Disposable Acuvue 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.
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 Disposable Acuvue in the Sales & Marketing sector and impact the bottomline of the organization.
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. Disposable Acuvue 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Vistakon: 1 Day Acuvue Disposable Contact Lenses, Disposable Acuvue may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Regulatory challenges
– Disposable Acuvue 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 Sales & Marketing industry regulations.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Disposable Acuvue can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Disposable Acuvue 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, Disposable Acuvue 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses .
Shortening product life cycle
– it is one of the major threat that Disposable Acuvue is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Disposable Acuvue has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Disposable Acuvue needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Vistakon: 1 Day Acuvue Disposable Contact Lenses 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 Disposable Acuvue needs to make to build a sustainable competitive advantage.