Pfizer: Letter from the Chairman (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pfizer: Letter from the Chairman (B)
This case continues the story begun in "Pfizer: A Letter From The Chairman" (HBS No. 9-110-003), revealing the letter Chairman and CEO Jeff Kindler wrote for the 2008 Annual Report.
Swot Analysis of "Pfizer: Letter from the Chairman (B)" written by Robert L. Simons, Kathryn Rosenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Letter Pfizer facing as an external strategic factors. Some of the topics covered in Pfizer: Letter from the Chairman (B) case study are - Strategic Management Strategies, Mergers & acquisitions, Organizational culture and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Pfizer: Letter from the Chairman (B) casestudy better are - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing energy prices, central banks are concerned over increasing inflation, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, etc
Introduction to SWOT Analysis of Pfizer: Letter from the Chairman (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pfizer: Letter from the Chairman (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Letter Pfizer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Letter Pfizer 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 Pfizer: Letter from the Chairman (B) can be done for the following purposes –
1. Strategic planning using facts provided in Pfizer: Letter from the Chairman (B) case study
2. Improving business portfolio management of Letter Pfizer
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Letter Pfizer
Strengths Pfizer: Letter from the Chairman (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Letter Pfizer in Pfizer: Letter from the Chairman (B) Harvard Business Review case study are -
Analytics focus
– Letter Pfizer 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 Robert L. Simons, Kathryn Rosenberg 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.
Highly skilled collaborators
– Letter Pfizer 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 Pfizer: Letter from the Chairman (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Letter Pfizer
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Letter Pfizer 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 Letter Pfizer 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.
Operational resilience
– The operational resilience strategy in the Pfizer: Letter from the Chairman (B) 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 recruit top talent
– Letter Pfizer is one of the leading recruiters in the industry. Managers in the Pfizer: Letter from the Chairman (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.
Cross disciplinary teams
– Horizontal connected teams at the Letter Pfizer 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.
Diverse revenue streams
– Letter Pfizer is present in almost all the verticals within the industry. This has provided firm in Pfizer: Letter from the Chairman (B) 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.
Low bargaining power of suppliers
– Suppliers of Letter Pfizer in the sector have low bargaining power. Pfizer: Letter from the Chairman (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Letter Pfizer to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Letter Pfizer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Finance & Accounting industry
– Pfizer: Letter from the Chairman (B) firm has clearly differentiated products in the market place. This has enabled Letter Pfizer to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Letter Pfizer to invest into research and development (R&D) and innovation.
High brand equity
– Letter Pfizer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Letter Pfizer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Pfizer: Letter from the Chairman (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pfizer: Letter from the Chairman (B) are -
Capital Spending Reduction
– Even during the low interest decade, Letter Pfizer 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 Pfizer: Letter from the Chairman (B), in the dynamic environment Letter Pfizer has struggled to respond to the nimble upstart competition. Letter Pfizer has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Letter Pfizer products
– To increase the profitability and margins on the products, Letter Pfizer needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Pfizer: Letter from the Chairman (B), it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 strategic competitive environment developments
– As Pfizer: Letter from the Chairman (B) HBR case study mentions - Letter Pfizer 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Letter Pfizer is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pfizer: Letter from the Chairman (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.
Increasing silos among functional specialists
– The organizational structure of Letter Pfizer is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Letter Pfizer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Letter Pfizer to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Pfizer: Letter from the Chairman (B) 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 Letter Pfizer 's lucrative customers.
Need for greater diversity
– Letter Pfizer 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.
Interest costs
– Compare to the competition, Letter Pfizer 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 Letter Pfizer 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 - Pfizer: Letter from the Chairman (B) should strive to include more intangible value offerings along with its core products and services.
Opportunities Pfizer: Letter from the Chairman (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 Pfizer: Letter from the Chairman (B) are -
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 Letter Pfizer in the consumer business. Now Letter Pfizer can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Letter Pfizer 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 Finance & Accounting segment.
Developing new processes and practices
– Letter Pfizer can develop new processes and procedures in Finance & Accounting 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Letter Pfizer can use these opportunities to build new business models that can help the communities that Letter Pfizer operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Buying journey improvements
– Letter Pfizer can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pfizer: Letter from the Chairman (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.
Creating value in data economy
– The success of analytics program of Letter Pfizer has opened avenues for new revenue streams for the organization in the industry. This can help Letter Pfizer to build a more holistic ecosystem as suggested in the Pfizer: Letter from the Chairman (B) case study. Letter Pfizer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Letter Pfizer can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Letter Pfizer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Letter Pfizer 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. Letter Pfizer 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Letter Pfizer is facing challenges because of the dominance of functional experts in the organization. Pfizer: Letter from the Chairman (B) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Letter Pfizer 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Letter Pfizer can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Letter Pfizer to increase its market reach. Letter Pfizer 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.
Threats Pfizer: Letter from the Chairman (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pfizer: Letter from the Chairman (B) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Letter Pfizer in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Letter Pfizer is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Letter Pfizer has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Letter Pfizer needs to keep up with the evolution of technology in the Finance & Accounting 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pfizer: Letter from the Chairman (B), Letter Pfizer may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Stagnating economy with rate increase
– Letter Pfizer 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.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Letter Pfizer will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Letter Pfizer 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. Letter Pfizer can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Letter Pfizer needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Increasing wage structure of Letter Pfizer
– 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 Letter Pfizer.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Letter Pfizer 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 Pfizer: Letter from the Chairman (B) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Letter Pfizer 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 Letter Pfizer business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Pfizer: Letter from the Chairman (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 Pfizer: Letter from the Chairman (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 Pfizer: Letter from the Chairman (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 Pfizer: Letter from the Chairman (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 Pfizer: Letter from the Chairman (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 Letter Pfizer needs to make to build a sustainable competitive advantage.
