Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.Metabical is a new weight loss drug from Cambridge Sciences Pharmaceuticals intended for moderately overweight individuals. In anticipation of final FDA approval, the senior director of marketing, Barbara Printup, prepares for the product launch and must make several critical decisions. First, she must select the optimal packaging size for the drug which typically requires a 12-week course of treatment. Next, she must determine the appropriate pricing. Since most insurance companies do not cover weight-loss medications, price has a direct impact on the sales forecast. To establish the initial demand forecast, Printup considers three approaches based on different assumptions. Her final recommendations must consider long term profitability and meet the company's desired return on investment.The case includes a quantitative assignment for students.
Swot Analysis of "Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug" written by John A. Quelch, Heather Beckham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Weight Printup facing as an external strategic factors. Some of the topics covered in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug case study are - Strategic Management Strategies, Customers, Forecasting, Pricing, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug casestudy better are - – increasing energy prices, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , there is backlash against globalization,
increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Weight Printup, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Weight Printup 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug can be done for the following purposes –
1. Strategic planning using facts provided in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug case study
2. Improving business portfolio management of Weight Printup
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 Weight Printup
Strengths Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Weight Printup in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug firm has clearly differentiated products in the market place. This has enabled Weight Printup to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Weight Printup to invest into research and development (R&D) and innovation.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Weight Printup digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Weight Printup has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Diverse revenue streams
– Weight Printup is present in almost all the verticals within the industry. This has provided firm in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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.
Analytics focus
– Weight Printup 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 John A. Quelch, Heather Beckham 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.
Innovation driven organization
– Weight Printup is one of the most innovative firm in sector. Manager in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Weight Printup has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Weight Printup has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Weight Printup to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Weight Printup in the sector have low bargaining power. Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Weight Printup to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Weight Printup 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 Weight Printup is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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.
Highly skilled collaborators
– Weight Printup 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Weight Printup 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.
Weaknesses Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug are -
Capital Spending Reduction
– Even during the low interest decade, Weight Printup has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug, it seems that the employees of Weight Printup don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Weight Printup 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 - Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug can leverage the sales team experience to cultivate customer relationships as Weight Printup 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 Weight Printup supply chain. Even after few cautionary changes mentioned in the HBR case study - Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Weight Printup 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, Weight Printup is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Weight Printup 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Weight Printup 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Weight Printup has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug HBR case study mentions - Weight Printup takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow decision making process
– As mentioned earlier in the report, Weight Printup 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. Weight Printup 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.
Opportunities Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug | 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug are -
Manufacturing automation
– Weight Printup 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.
Creating value in data economy
– The success of analytics program of Weight Printup has opened avenues for new revenue streams for the organization in the industry. This can help Weight Printup to build a more holistic ecosystem as suggested in the Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug case study. Weight Printup can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Weight Printup 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, Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Weight Printup 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Weight Printup to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Weight Printup 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Weight Printup is facing challenges because of the dominance of functional experts in the organization. Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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.
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 Weight Printup in the consumer business. Now Weight Printup can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Weight Printup to increase its market reach. Weight Printup 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 Weight Printup can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Weight Printup can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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. Weight Printup 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
– Weight Printup can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Weight Printup 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.
Threats Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug are -
Consumer confidence and its impact on Weight Printup 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.
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. Weight Printup can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Weight Printup 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.
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.
Technology acceleration in Forth Industrial Revolution
– Weight Printup has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Weight Printup 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug, Weight Printup 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 .
Stagnating economy with rate increase
– Weight Printup 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.
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. Weight Printup needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Weight Printup is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Weight Printup 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Weight Printup 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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Weight Printup.
Weighted SWOT Analysis of Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug 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 Weight Printup needs to make to build a sustainable competitive advantage.