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 - – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
increasing household debt because of falling income levels, there is backlash against globalization, 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 -
Ability to lead change in Sales & Marketing field
– Clamoxyl Augmentin 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 Clamoxyl Augmentin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Clamoxyl Augmentin has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Clamoxyl Augmentin 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.
Training and development
– Clamoxyl Augmentin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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.
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.
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.
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.
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.
Highly skilled collaborators
– Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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 -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996, is just above the industry average. Clamoxyl Augmentin needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of 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.
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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Clamoxyl Augmentin, firm in the HBR case study Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Clamoxyl Augmentin products
– To increase the profitability and margins on the products, Clamoxyl Augmentin needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Slow decision making process
– As mentioned earlier in the report, Clamoxyl Augmentin 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. Clamoxyl Augmentin 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.
Need for greater diversity
– Clamoxyl Augmentin has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 -
Using analytics as competitive advantage
– Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Clamoxyl Augmentin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Clamoxyl Augmentin can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 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.
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.
Better consumer reach
– The expansion of the 5G network will help Clamoxyl Augmentin to increase its market reach. Clamoxyl Augmentin 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.
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.
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.
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.
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.
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.
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.
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.
Building a culture of innovation
– managers at Clamoxyl Augmentin 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.
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 -
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. Clamoxyl Augmentin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Clamoxyl Augmentin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clamoxyl Augmentin 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 Marketing Strategies in the Competition between Branded and Generic Antibiotics (A): Clamoxyl in 1996 .
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.
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.
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.
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 Clamoxyl Augmentin business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Clamoxyl Augmentin has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Clamoxyl Augmentin 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.
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.
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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