Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996
In July 1996, the French social security governmental agency (the CNAM) sent a letter to all doctors urging them to prescribe generic amoxicillin instead of Clamoxyl, SmithKline Beecham's (SB) blockbuster antibiotic. Pierre Chahwakilian, Marketing Director of SB in France must decide how to respond: (1) milk Clamoxyl and divert promotional investments towards Augmentin, a more specialized and still patent-protected antibiotic, (2) strengthen Clamoxyl's brand equity among doctors by increasing the effort of medical reps, by launching new forms, or with new advertising, (3) go against SBA?s corporate philosophy and reduce the price of Clamoxyl, or (4) change nothing and count on the resistance of French doctors towards generics. The B case (Augmentin in 2002) shows that GSK (the company formed by the merger of Glaxo Wellcome and SmithKline Beecham) now faces the same options for Augmentin, another blockbuster antibiotic. Should they use the strategy that was so successful for Clamoxyl or have the market conditions changed so much that a whole different approach should be followed?
Authors :: Pierre Chandon, Olivier Kovarski, Jacques Lendrevie, Sarah Spargo
Swot Analysis of "Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996" written by Pierre Chandon, Olivier Kovarski, Jacques Lendrevie, Sarah Spargo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clamoxyl Augmentin facing as an external strategic factors. Some of the topics covered in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 case study are - Strategic Management Strategies, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clamoxyl Augmentin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 can be done for the following purposes –
1. Strategic planning using facts provided in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 case study
2. Improving business portfolio management of Clamoxyl Augmentin
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 Clamoxyl Augmentin
Strengths Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clamoxyl Augmentin in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Clamoxyl Augmentin in the sector have low bargaining power. Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Clamoxyl Augmentin to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 firm has clearly differentiated products in the market place. This has enabled Clamoxyl Augmentin to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Clamoxyl Augmentin to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Clamoxyl Augmentin in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Clamoxyl Augmentin is one of the most innovative firm in sector. Manager in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Clamoxyl Augmentin is one of the leading recruiters in the industry. Managers in the Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Clamoxyl Augmentin
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Clamoxyl Augmentin does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Clamoxyl Augmentin 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Clamoxyl Augmentin digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clamoxyl Augmentin 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.
High switching costs
– The high switching costs that Clamoxyl Augmentin 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.
Strong track record of project management
– Clamoxyl Augmentin 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
- Clamoxyl Augmentin 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 Clamoxyl Augmentin is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 are -
Workers concerns about automation
– As automation is fast increasing in the segment, Clamoxyl Augmentin 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 bargaining power of channel partners
– Because of the regulatory requirements, Pierre Chandon, Olivier Kovarski, Jacques Lendrevie, Sarah Spargo suggests that, Clamoxyl Augmentin 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996, in the dynamic environment Clamoxyl Augmentin has struggled to respond to the nimble upstart competition. Clamoxyl Augmentin has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Clamoxyl Augmentin 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.
Slow to strategic competitive environment developments
– As Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 HBR case study mentions - Clamoxyl Augmentin 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.
Skills based hiring
– The stress on hiring functional specialists at Clamoxyl Augmentin 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.
Interest costs
– Compare to the competition, Clamoxyl Augmentin 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Clamoxyl Augmentin is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Clamoxyl Augmentin is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Clamoxyl Augmentin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clamoxyl Augmentin to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 can leverage the sales team experience to cultivate customer relationships as Clamoxyl Augmentin is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Clamoxyl Augmentin 's lucrative customers.
Opportunities Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 | 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 are -
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 Clamoxyl Augmentin in the consumer business. Now Clamoxyl Augmentin can target international markets with far fewer capital restrictions requirements than the existing system.
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. Clamoxyl Augmentin 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. Clamoxyl Augmentin 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Clamoxyl Augmentin is facing challenges because of the dominance of functional experts in the organization. Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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.
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. Clamoxyl Augmentin can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Clamoxyl Augmentin has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clamoxyl Augmentin can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Clamoxyl Augmentin can use these opportunities to build new business models that can help the communities that Clamoxyl Augmentin operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Clamoxyl Augmentin can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Clamoxyl Augmentin 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clamoxyl Augmentin 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, Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Clamoxyl Augmentin has opened avenues for new revenue streams for the organization in the industry. This can help Clamoxyl Augmentin to build a more holistic ecosystem as suggested in the Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 case study. Clamoxyl Augmentin can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Clamoxyl Augmentin to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Clamoxyl Augmentin to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Clamoxyl Augmentin 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.
Threats Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 are -
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.
Regulatory challenges
– Clamoxyl Augmentin 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.
Environmental challenges
– Clamoxyl Augmentin 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. Clamoxyl Augmentin can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Clamoxyl Augmentin.
High dependence on third party suppliers
– Clamoxyl Augmentin 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.
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 Clamoxyl Augmentin in the Sales & Marketing sector and impact the bottomline of the organization.
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. Clamoxyl Augmentin needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on Clamoxyl Augmentin 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.
Stagnating economy with rate increase
– Clamoxyl Augmentin 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 Clamoxyl Augmentin
– 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 Clamoxyl Augmentin.
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. Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996, Clamoxyl Augmentin 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 .
Shortening product life cycle
– it is one of the major threat that Clamoxyl Augmentin is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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 Clamoxyl Augmentin needs to make to build a sustainable competitive advantage.
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