The PCDA Project of Doctors Without Borders-Spain, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The PCDA Project of Doctors Without Borders-Spain, Spanish Version
This case won NACRA's Curtis E. Tate Award for the best case published in the Case Research Journal in 2013."PCDA" is the Spanish acronym for Pastillas Contra el Dolor Ajeno (Pills for Other People's Pain).The case outlines the methods employed by the Spanish branch of MA?decins sans FrontiA?res, hereafter MSF (Doctors Without Borders) to develop a physical product that could be used to raise funds for the organization's social initiatives. The case focus is set in mid-March 2011, a few weeks after Juan RamA?n Axta's appointment as the new head of the PCDA project at a time when sales were plummeting. The PCDA was successfully launched in November 2010. This cutting edge idea and the campaign created to publicize it received wide media coverage. The PCDA was initially very successful with consumers. The initiative was seen as a unique innovation in Spain and around the world. During the first 20 days that followed the product launch, 1.5 million packets were sold. After three months, sales reached 3 million packets. Pharmacies complained of constant stock outs. The sales of the PCDAs surpassed all previous forecasts. Based on this initial success, MSF ordered an extra 3 million packets. However, at the end of February sales dropped by 400,000 packets (i.e., a 50% decline from the previous month). At that pace MSF feared sales in March would not exceed 100,000 packets. This sharp drop in sales created significant uncertainty about the campaign's future. Atxa had to decide whether MSF should continue with the project or cancel it. He wondered whether he should put an end to it and learn from the experience. He had only recently been placed in charge of it, so he felt compelled not to choose this option. However, what was the best thing to do?
Authors :: David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed
Topics :: Sales & Marketing
Tags :: International business, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "The PCDA Project of Doctors Without Borders-Spain, Spanish Version" written by David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pcda Packets facing as an external strategic factors. Some of the topics covered in The PCDA Project of Doctors Without Borders-Spain, Spanish Version case study are - Strategic Management Strategies, International business, Social enterprise, Social responsibility and Sales & Marketing.
Some of the macro environment factors that can be used to understand the The PCDA Project of Doctors Without Borders-Spain, Spanish Version casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices, wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of The PCDA Project of Doctors Without Borders-Spain, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The PCDA Project of Doctors Without Borders-Spain, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pcda Packets, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in The PCDA Project of Doctors Without Borders-Spain, Spanish Version case study
2. Improving business portfolio management of Pcda Packets
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 Pcda Packets
Strengths The PCDA Project of Doctors Without Borders-Spain, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pcda Packets in The PCDA Project of Doctors Without Borders-Spain, Spanish Version Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– The PCDA Project of Doctors Without Borders-Spain, Spanish Version firm has clearly differentiated products in the market place. This has enabled Pcda Packets to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Pcda Packets to invest into research and development (R&D) and innovation.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Pcda Packets digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pcda Packets 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.
Strong track record of project management
– Pcda Packets is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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.
Ability to recruit top talent
– Pcda Packets is one of the leading recruiters in the industry. Managers in the The PCDA Project of Doctors Without Borders-Spain, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Pcda Packets in the sector have low bargaining power. The PCDA Project of Doctors Without Borders-Spain, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pcda Packets to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Pcda Packets 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 Pcda Packets in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Pcda Packets is one of the most innovative firm in sector. Manager in The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 Pcda Packets 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.
Superior customer experience
– The customer experience strategy of Pcda Packets in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Pcda Packets has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pcda Packets to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses The PCDA Project of Doctors Without Borders-Spain, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The PCDA Project of Doctors Without Borders-Spain, Spanish Version are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The PCDA Project of Doctors Without Borders-Spain, Spanish Version, in the dynamic environment Pcda Packets has struggled to respond to the nimble upstart competition. Pcda Packets has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 Pcda Packets has relatively successful track record of launching new products.
Products dominated business model
– Even though Pcda Packets 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 - The PCDA Project of Doctors Without Borders-Spain, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As The PCDA Project of Doctors Without Borders-Spain, Spanish Version HBR case study mentions - Pcda Packets 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.
High bargaining power of channel partners
– Because of the regulatory requirements, David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed suggests that, Pcda Packets 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.
Lack of clear differentiation of Pcda Packets products
– To increase the profitability and margins on the products, Pcda Packets needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Pcda Packets 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pcda Packets 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 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 Pcda Packets supply chain. Even after few cautionary changes mentioned in the HBR case study - The PCDA Project of Doctors Without Borders-Spain, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pcda Packets vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Pcda Packets has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The PCDA Project of Doctors Without Borders-Spain, Spanish Version, it seems that the employees of Pcda Packets 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.
Opportunities The PCDA Project of Doctors Without Borders-Spain, Spanish Version | 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version are -
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. Pcda Packets can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Pcda Packets can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pcda Packets 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.
Learning at scale
– Online learning technologies has now opened space for Pcda Packets 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.
Using analytics as competitive advantage
– Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pcda Packets to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Pcda Packets has opened avenues for new revenue streams for the organization in the industry. This can help Pcda Packets to build a more holistic ecosystem as suggested in the The PCDA Project of Doctors Without Borders-Spain, Spanish Version case study. Pcda Packets can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pcda Packets in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pcda Packets 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, The PCDA Project of Doctors Without Borders-Spain, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Pcda Packets 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pcda Packets can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pcda Packets can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Leveraging digital technologies
– Pcda Packets 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Pcda Packets to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Pcda Packets to increase its market reach. Pcda Packets 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.
Threats The PCDA Project of Doctors Without Borders-Spain, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The PCDA Project of Doctors Without Borders-Spain, Spanish Version are -
Consumer confidence and its impact on Pcda Packets 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.
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 Pcda Packets in the Sales & Marketing sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pcda Packets 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.
Environmental challenges
– Pcda Packets 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. Pcda Packets can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Pcda Packets 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.
Increasing wage structure of Pcda Packets
– 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 Pcda Packets.
High dependence on third party suppliers
– Pcda Packets 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.
Regulatory challenges
– Pcda Packets 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The PCDA Project of Doctors Without Borders-Spain, Spanish Version, Pcda Packets 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pcda Packets with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 The PCDA Project of Doctors Without Borders-Spain, Spanish Version 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 Pcda Packets needs to make to build a sustainable competitive advantage.
