Case Study Description of Gilead: Hepatitis C Access Strategy (B)
While the Gilead: Hepatitis-C Access Strategy (A) case (515-025) poses questions on what the company should do with respect to hart hit countries like Egypt and India, this (B) case provides the answer. In both cases, the company chose to pursue a proactive strategy to enable access at affordable prices.
Swot Analysis of "Gilead: Hepatitis C Access Strategy (B)" written by V. Kasturi Rangan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hepatitis Gilead facing as an external strategic factors. Some of the topics covered in Gilead: Hepatitis C Access Strategy (B) case study are - Strategic Management Strategies, Health, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Gilead: Hepatitis C Access Strategy (B) casestudy better are - – increasing commodity prices, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of Gilead: Hepatitis C Access Strategy (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gilead: Hepatitis C Access Strategy (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hepatitis Gilead, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hepatitis Gilead 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 Gilead: Hepatitis C Access Strategy (B) can be done for the following purposes –
1. Strategic planning using facts provided in Gilead: Hepatitis C Access Strategy (B) case study
2. Improving business portfolio management of Hepatitis Gilead
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 Hepatitis Gilead
Strengths Gilead: Hepatitis C Access Strategy (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hepatitis Gilead in Gilead: Hepatitis C Access Strategy (B) Harvard Business Review case study are -
Innovation driven organization
– Hepatitis Gilead is one of the most innovative firm in sector. Manager in Gilead: Hepatitis C Access Strategy (B) 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
– Gilead: Hepatitis C Access Strategy (B) firm has clearly differentiated products in the market place. This has enabled Hepatitis Gilead to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hepatitis Gilead to invest into research and development (R&D) and innovation.
Ability to lead change in Sales & Marketing field
– Hepatitis Gilead 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 Hepatitis Gilead in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Hepatitis Gilead 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 Gilead: Hepatitis C Access Strategy (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Hepatitis Gilead 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 V. Kasturi Rangan 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.
Learning organization
- Hepatitis Gilead 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 Hepatitis Gilead is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gilead: Hepatitis C Access Strategy (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Hepatitis Gilead
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hepatitis Gilead does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Hepatitis Gilead 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Hepatitis Gilead digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hepatitis Gilead 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.
Ability to recruit top talent
– Hepatitis Gilead is one of the leading recruiters in the industry. Managers in the Gilead: Hepatitis C Access Strategy (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Hepatitis Gilead has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gilead: Hepatitis C Access Strategy (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Hepatitis Gilead has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hepatitis Gilead to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Gilead: Hepatitis C Access Strategy (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gilead: Hepatitis C Access Strategy (B) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Gilead: Hepatitis C Access Strategy (B), is just above the industry average. Hepatitis Gilead 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.
No frontier risks strategy
– After analyzing the HBR case study Gilead: Hepatitis C Access Strategy (B), it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hepatitis Gilead is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gilead: Hepatitis C Access Strategy (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Gilead: Hepatitis C Access Strategy (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Gilead: Hepatitis C Access Strategy (B) can leverage the sales team experience to cultivate customer relationships as Hepatitis Gilead is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Hepatitis Gilead is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Hepatitis Gilead needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hepatitis Gilead to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Hepatitis Gilead 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 Hepatitis Gilead 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 - Gilead: Hepatitis C Access Strategy (B) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Gilead: Hepatitis C Access Strategy (B) HBR case study mentions - Hepatitis Gilead 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 cash cycle compare to competitors
Hepatitis Gilead 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.
Capital Spending Reduction
– Even during the low interest decade, Hepatitis Gilead 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gilead: Hepatitis C Access Strategy (B), in the dynamic environment Hepatitis Gilead has struggled to respond to the nimble upstart competition. Hepatitis Gilead has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Gilead: Hepatitis C Access Strategy (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Gilead: Hepatitis C Access Strategy (B) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Hepatitis Gilead can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hepatitis Gilead can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hepatitis Gilead 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 Hepatitis Gilead in the consumer business. Now Hepatitis Gilead can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Hepatitis Gilead can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gilead: Hepatitis C Access Strategy (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Hepatitis Gilead 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 Gilead: Hepatitis C Access Strategy (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hepatitis Gilead to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Hepatitis Gilead 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.
Manufacturing automation
– Hepatitis Gilead 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.
Leveraging digital technologies
– Hepatitis Gilead 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. Hepatitis Gilead 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. Hepatitis Gilead 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hepatitis Gilead 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, Gilead: Hepatitis C Access Strategy (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Hepatitis Gilead 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.
Learning at scale
– Online learning technologies has now opened space for Hepatitis Gilead 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 Gilead: Hepatitis C Access Strategy (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gilead: Hepatitis C Access Strategy (B) are -
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. Hepatitis Gilead needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hepatitis Gilead with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Hepatitis Gilead 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.
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. Hepatitis Gilead can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Hepatitis Gilead
– 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 Hepatitis Gilead.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hepatitis Gilead 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 Gilead: Hepatitis C Access Strategy (B) .
High dependence on third party suppliers
– Hepatitis Gilead 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.
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 Hepatitis Gilead.
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.
Technology acceleration in Forth Industrial Revolution
– Hepatitis Gilead has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hepatitis Gilead 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.
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 Hepatitis Gilead in the Sales & Marketing sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gilead: Hepatitis C Access Strategy (B), Hepatitis Gilead 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 .
Weighted SWOT Analysis of Gilead: Hepatitis C Access Strategy (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Gilead: Hepatitis C Access Strategy (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Gilead: Hepatitis C Access Strategy (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Gilead: Hepatitis C Access Strategy (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Gilead: Hepatitis C Access Strategy (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hepatitis Gilead needs to make to build a sustainable competitive advantage.