Zithromax Z-Pak and the "Biaxin BBQ" (A) 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" (A)
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" (A)" 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" (A) 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" (A) casestudy better are - – technology disruption, increasing energy prices, there is increasing trade war between United States & China, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
wage bills are increasing, there is backlash against globalization, etc
Introduction to SWOT Analysis of Zithromax Z-Pak and the "Biaxin BBQ" (A)
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" (A) 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" (A) can be done for the following purposes –
1. Strategic planning using facts provided in Zithromax Z-Pak and the "Biaxin BBQ" (A) 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" (A) | 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" (A) Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– Zithromax Z-Pak and the "Biaxin BBQ" (A) 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.
Innovation driven organization
– Biaxin Zithromax is one of the most innovative firm in sector. Manager in Zithromax Z-Pak and the "Biaxin BBQ" (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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" (A) 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.
Learning organization
- Biaxin Zithromax 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 Biaxin Zithromax is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Zithromax Z-Pak and the "Biaxin BBQ" (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Zithromax Z-Pak and the "Biaxin BBQ" (A) 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.
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.
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.
Ability to lead change in Sales & Marketing field
– Biaxin Zithromax 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 Biaxin Zithromax 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
– 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.
Highly skilled collaborators
– Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (A) HBR case study have helped the firm to develop new products and bring them quickly to 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.
Weaknesses Zithromax Z-Pak and the "Biaxin BBQ" (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Zithromax Z-Pak and the "Biaxin BBQ" (A) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (A), 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" (A), 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Zithromax Z-Pak and the "Biaxin BBQ" (A) 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 bargaining power of channel partners
– Because of the regulatory requirements, Julie Hennessy suggests that, Biaxin Zithromax 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 operating costs
– Compare to the competitors, firm in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (A) 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.
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" (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Biaxin Zithromax 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.
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 Biaxin Zithromax supply chain. Even after few cautionary changes mentioned in the HBR case study - Zithromax Z-Pak and the "Biaxin BBQ" (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Biaxin Zithromax vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Biaxin Zithromax 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. Biaxin Zithromax 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Zithromax Z-Pak and the "Biaxin BBQ" (A), in the dynamic environment Biaxin Zithromax has struggled to respond to the nimble upstart competition. Biaxin Zithromax has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Zithromax Z-Pak and the "Biaxin BBQ" (A) | 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" (A) 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. Biaxin Zithromax can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Manufacturing automation
– Biaxin Zithromax 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.
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.
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.
Leveraging digital technologies
– Biaxin Zithromax 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.
Building a culture of innovation
– managers at Biaxin Zithromax 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Biaxin Zithromax can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Biaxin Zithromax has opened avenues for new revenue streams for the organization in the industry. This can help Biaxin Zithromax to build a more holistic ecosystem as suggested in the Zithromax Z-Pak and the "Biaxin BBQ" (A) case study. Biaxin Zithromax 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 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.
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" (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Biaxin Zithromax 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 Zithromax Z-Pak and the "Biaxin BBQ" (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Biaxin Zithromax to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Threats Zithromax Z-Pak and the "Biaxin BBQ" (A) 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" (A) are -
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" (A), 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 .
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. Biaxin Zithromax needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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" (A) .
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.
Increasing wage structure of Biaxin Zithromax
– 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 Biaxin Zithromax.
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.
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.
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.
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.
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.
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 Biaxin Zithromax business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Weighted SWOT Analysis of Zithromax Z-Pak and the "Biaxin BBQ" (A) 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" (A) 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" (A) 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" (A) 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" (A) 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.