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 - – geopolitical disruptions, increasing household debt because of falling income levels, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, wage bills are increasing, central banks are concerned over increasing inflation,
increasing energy prices, supply chains are disrupted by pandemic , 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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" (A) 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.
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.
Ability to recruit top talent
– Biaxin Zithromax is one of the leading recruiters in the industry. Managers in the Zithromax Z-Pak and the "Biaxin BBQ" (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 -
Skills based hiring
– The stress on hiring functional specialists at Biaxin Zithromax 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.
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.
Need for greater diversity
– Biaxin Zithromax 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.
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.
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" (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Products dominated business model
– Even though Biaxin Zithromax has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Zithromax Z-Pak and the "Biaxin BBQ" (A) should strive to include more intangible value offerings along with its core products and services.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study Zithromax Z-Pak and the "Biaxin BBQ" (A) 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" (A) 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" (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 -
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.
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.
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" (A) 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 .
Consumer confidence and its impact on Biaxin Zithromax 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.
High dependence on third party suppliers
– Biaxin Zithromax 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.
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) .
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.
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 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.
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.
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.
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.
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.
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.
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.
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.