Zithromax Z-Pak and the "Biaxin BBQ" (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Zithromax Z-Pak and the "Biaxin BBQ" (B)
The Biaxin case deals with competition in the mature market for antibiotics designed for use in the treatment of bacterial respiratory infections. The case tells the story of how Pfizer's Zithromax stole the share dominance of an established brand, Abbott's Biaxin. The case deals with the importance in pharma markets of consumer (patient) and channel (physician and insurance payer) insight as well as pharmacological efficacy data.
Swot Analysis of "Zithromax Z-Pak and the "Biaxin BBQ" (B)" written by Julie Hennessy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Biaxin Zithromax facing as an external strategic factors. Some of the topics covered in Zithromax Z-Pak and the "Biaxin BBQ" (B) case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Zithromax Z-Pak and the "Biaxin BBQ" (B) casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Zithromax Z-Pak and the "Biaxin BBQ" (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Zithromax Z-Pak and the "Biaxin BBQ" (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Biaxin Zithromax, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) can be done for the following purposes –
1. Strategic planning using facts provided in Zithromax Z-Pak and the "Biaxin BBQ" (B) case study
2. Improving business portfolio management of Biaxin Zithromax
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 Biaxin Zithromax
Strengths Zithromax Z-Pak and the "Biaxin BBQ" (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Biaxin Zithromax in Zithromax Z-Pak and the "Biaxin BBQ" (B) Harvard Business Review case study are -
High brand equity
– Biaxin Zithromax has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Biaxin Zithromax to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Biaxin Zithromax has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Biaxin Zithromax has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Biaxin Zithromax in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Biaxin Zithromax 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 Julie Hennessy 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.
Diverse revenue streams
– Biaxin Zithromax is present in almost all the verticals within the industry. This has provided firm in Zithromax Z-Pak and the "Biaxin BBQ" (B) 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Zithromax Z-Pak and the "Biaxin BBQ" (B) firm has clearly differentiated products in the market place. This has enabled Biaxin Zithromax to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Biaxin Zithromax to invest into research and development (R&D) and innovation.
Organizational Resilience of Biaxin Zithromax
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Biaxin Zithromax 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 Biaxin Zithromax 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.
Strong track record of project management
– Biaxin Zithromax is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Biaxin Zithromax 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.
Innovation driven organization
– Biaxin Zithromax is one of the most innovative firm in sector. Manager in Zithromax Z-Pak and the "Biaxin BBQ" (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Biaxin Zithromax has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Zithromax Z-Pak and the "Biaxin BBQ" (B) 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.
Weaknesses Zithromax Z-Pak and the "Biaxin BBQ" (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Zithromax Z-Pak and the "Biaxin BBQ" (B) are -
Low market penetration in new markets
– Outside its home market of Biaxin Zithromax, firm in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Biaxin Zithromax is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Biaxin Zithromax is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Biaxin Zithromax needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Biaxin Zithromax to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Biaxin Zithromax 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (B), it seems that the employees of Biaxin Zithromax 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.
No frontier risks strategy
– After analyzing the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (B), 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.
Lack of clear differentiation of Biaxin Zithromax products
– To increase the profitability and margins on the products, Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Biaxin Zithromax 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Biaxin Zithromax has relatively successful track record of launching new products.
High cash cycle compare to competitors
Biaxin Zithromax 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.
Aligning sales with marketing
– It come across in the case study Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) can leverage the sales team experience to cultivate customer relationships as Biaxin Zithromax is planning to shift buying processes online.
Opportunities Zithromax Z-Pak and the "Biaxin BBQ" (B) | 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Biaxin Zithromax is facing challenges because of the dominance of functional experts in the organization. Zithromax Z-Pak and the "Biaxin BBQ" (B) 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.
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 Biaxin Zithromax 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 Biaxin Zithromax to increase its market reach. Biaxin Zithromax 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Biaxin Zithromax can use these opportunities to build new business models that can help the communities that Biaxin Zithromax operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Buying journey improvements
– Biaxin Zithromax can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Zithromax Z-Pak and the "Biaxin BBQ" (B) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Biaxin Zithromax 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, Zithromax Z-Pak and the "Biaxin BBQ" (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Biaxin Zithromax in the consumer business. Now Biaxin Zithromax can target international markets with far fewer capital restrictions requirements than the existing system.
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. Biaxin Zithromax can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Biaxin Zithromax 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. Biaxin Zithromax 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.
Learning at scale
– Online learning technologies has now opened space for Biaxin Zithromax 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Biaxin Zithromax 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.
Developing new processes and practices
– Biaxin Zithromax 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Biaxin Zithromax 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 Biaxin Zithromax to hire the very best people irrespective of their geographical location.
Threats Zithromax Z-Pak and the "Biaxin BBQ" (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (B) 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
– Biaxin Zithromax 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Zithromax Z-Pak and the "Biaxin BBQ" (B), Biaxin Zithromax 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 .
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 Biaxin Zithromax.
Technology acceleration in Forth Industrial Revolution
– Biaxin Zithromax has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Biaxin Zithromax 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.
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. Biaxin Zithromax 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.
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. Biaxin Zithromax can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Biaxin Zithromax 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. Biaxin Zithromax can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Biaxin Zithromax 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Biaxin Zithromax 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) .
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 Biaxin Zithromax in the Sales & Marketing sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Zithromax Z-Pak and the "Biaxin BBQ" (B) 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 Biaxin Zithromax needs to make to build a sustainable competitive advantage.