Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video
Kiran Mazumdar Shaw, CEO of Biocon, discusses decisions related to the launch of a new cancer drug in India. Interviewed on May 6, 2009 by Professor Sunil Gupta at Harvard Business School.
Swot Analysis of "Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video" written by Sunil Gupta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mazumdar Biocon facing as an external strategic factors. Some of the topics covered in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video case study are - Strategic Management Strategies, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, increasing commodity prices, technology disruption,
increasing energy prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mazumdar Biocon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mazumdar Biocon 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video can be done for the following purposes –
1. Strategic planning using facts provided in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video case study
2. Improving business portfolio management of Mazumdar Biocon
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 Mazumdar Biocon
Strengths Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mazumdar Biocon in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video Harvard Business Review case study are -
Training and development
– Mazumdar Biocon has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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.
Successful track record of launching new products
– Mazumdar Biocon has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mazumdar Biocon 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.
Effective Research and Development (R&D)
– Mazumdar Biocon 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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.
Ability to lead change in Sales & Marketing field
– Mazumdar Biocon 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 Mazumdar Biocon in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Mazumdar Biocon 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
– Mazumdar Biocon is one of the most innovative firm in sector. Manager in Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Sales & Marketing industry
– Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video firm has clearly differentiated products in the market place. This has enabled Mazumdar Biocon to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Mazumdar Biocon to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Mazumdar Biocon in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Mazumdar Biocon is one of the leading recruiters in the industry. Managers in the Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Mazumdar Biocon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mazumdar Biocon has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Mazumdar Biocon 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video, in the dynamic environment Mazumdar Biocon has struggled to respond to the nimble upstart competition. Mazumdar Biocon has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video, is just above the industry average. Mazumdar Biocon 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.
Capital Spending Reduction
– Even during the low interest decade, Mazumdar Biocon has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Mazumdar Biocon products
– To increase the profitability and margins on the products, Mazumdar Biocon 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Mazumdar Biocon 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Sunil Gupta suggests that, Mazumdar Biocon 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.
Need for greater diversity
– Mazumdar Biocon 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mazumdar Biocon is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Mazumdar Biocon 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.
Increasing silos among functional specialists
– The organizational structure of Mazumdar Biocon is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Mazumdar Biocon needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mazumdar Biocon to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video HBR case study mentions - Mazumdar Biocon 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.
Opportunities Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video | 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mazumdar Biocon 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.
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 Mazumdar Biocon in the consumer business. Now Mazumdar Biocon 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, Mazumdar Biocon 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, Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mazumdar Biocon 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 Mazumdar Biocon to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Mazumdar Biocon can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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.
Creating value in data economy
– The success of analytics program of Mazumdar Biocon has opened avenues for new revenue streams for the organization in the industry. This can help Mazumdar Biocon to build a more holistic ecosystem as suggested in the Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video case study. Mazumdar Biocon can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mazumdar Biocon can use these opportunities to build new business models that can help the communities that Mazumdar Biocon operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Developing new processes and practices
– Mazumdar Biocon 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.
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. Mazumdar Biocon can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Mazumdar Biocon 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. Mazumdar Biocon 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mazumdar Biocon can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Mazumdar Biocon 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.
Learning at scale
– Online learning technologies has now opened space for Mazumdar Biocon 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.
Threats Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video are -
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 Mazumdar Biocon in the Sales & Marketing sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Mazumdar Biocon has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Mazumdar Biocon 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.
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.
Environmental challenges
– Mazumdar Biocon 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. Mazumdar Biocon can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video, Mazumdar Biocon 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. Mazumdar Biocon needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mazumdar Biocon with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Mazumdar Biocon business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Mazumdar Biocon 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
– Mazumdar Biocon 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, Mazumdar Biocon 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video .
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 Mazumdar Biocon.
Increasing wage structure of Mazumdar Biocon
– 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 Mazumdar Biocon.
Weighted SWOT Analysis of Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Biocon: Interview with Dr. Kiran Mazumdar Shaw, CEO, Video 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 Mazumdar Biocon needs to make to build a sustainable competitive advantage.
