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, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, geopolitical disruptions, increasing household debt because of falling income levels, increasing commodity prices,
talent flight as more people leaving formal jobs, 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 -
Effective Research and Development (R&D)
– Biaxin Zithromax has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Zithromax Z-Pak and the "Biaxin BBQ" (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Biaxin Zithromax in the sector have low bargaining power. Zithromax Z-Pak and the "Biaxin BBQ" (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Biaxin Zithromax to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
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.
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.
Slow to strategic competitive environment developments
– As Zithromax Z-Pak and the "Biaxin BBQ" (A) HBR case study mentions - Biaxin Zithromax takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Zithromax Z-Pak and the "Biaxin BBQ" (A), is just above the industry average. Biaxin Zithromax 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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" (A) 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.
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.
Loyalty marketing
– Biaxin Zithromax 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.
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.
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.
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.
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.
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 -
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.
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.
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) .
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
