The PCDA Project of Doctors Without Borders-Spain SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of The PCDA Project of Doctors Without Borders-Spain

This case won NACRA's Curtis E. Tate Award for the best case published in the Case Research Journal in 2013."PCDA" is the Spanish acronym for Pastillas Contra el Dolor Ajeno (Pills for Other People's Pain).The case outlines the methods employed by the Spanish branch of MA?decins sans FrontiA?res, hereafter MSF (Doctors Without Borders) to develop a physical product that could be used to raise funds for the organization's social initiatives. The case focus is set in mid-March 2011, a few weeks after Juan RamA?n Axta's appointment as the new head of the PCDA project at a time when sales were plummeting. The PCDA was successfully launched in November 2010. This cutting edge idea and the campaign created to publicize it received wide media coverage. The PCDA was initially very successful with consumers. The initiative was seen as a unique innovation in Spain and around the world. During the first 20 days that followed the product launch, 1.5 million packets were sold. After three months, sales reached 3 million packets. Pharmacies complained of constant stock outs. The sales of the PCDAs surpassed all previous forecasts. Based on this initial success, MSF ordered an extra 3 million packets. However, at the end of February sales dropped by 400,000 packets (i.e., a 50% decline from the previous month). At that pace MSF feared sales in March would not exceed 100,000 packets. This sharp drop in sales created significant uncertainty about the campaign's future. Atxa had to decide whether MSF should continue with the project or cancel it. He wondered whether he should put an end to it and learn from the experience. He had only recently been placed in charge of it, so he felt compelled not to choose this option. However, what was the best thing to do?

Authors :: David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed

Topics :: Sales & Marketing

Tags :: International business, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "The PCDA Project of Doctors Without Borders-Spain" written by David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pcda Packets facing as an external strategic factors. Some of the topics covered in The PCDA Project of Doctors Without Borders-Spain case study are - Strategic Management Strategies, International business, Social enterprise, Social responsibility and Sales & Marketing.

Some of the macro environment factors that can be used to understand the The PCDA Project of Doctors Without Borders-Spain casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, etc

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Introduction to SWOT Analysis of The PCDA Project of Doctors Without Borders-Spain

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The PCDA Project of Doctors Without Borders-Spain case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pcda Packets, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pcda Packets 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of The PCDA Project of Doctors Without Borders-Spain can be done for the following purposes –
1. Strategic planning using facts provided in The PCDA Project of Doctors Without Borders-Spain case study
2. Improving business portfolio management of Pcda Packets
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 Pcda Packets

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Strengths The PCDA Project of Doctors Without Borders-Spain | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Pcda Packets in The PCDA Project of Doctors Without Borders-Spain Harvard Business Review case study are -

Successful track record of launching new products

– Pcda Packets has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pcda Packets 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.

Cross disciplinary teams

– Horizontal connected teams at the Pcda Packets 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.

Innovation driven organization

– Pcda Packets is one of the most innovative firm in sector. Manager in The PCDA Project of Doctors Without Borders-Spain Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Pcda Packets digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pcda Packets 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.

Training and development

– Pcda Packets has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The PCDA Project of Doctors Without Borders-Spain 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.

Highly skilled collaborators

– Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to recruit top talent

– Pcda Packets is one of the leading recruiters in the industry. Managers in the The PCDA Project of Doctors Without Borders-Spain are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Sustainable margins compare to other players in Sales & Marketing industry

– The PCDA Project of Doctors Without Borders-Spain firm has clearly differentiated products in the market place. This has enabled Pcda Packets to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Pcda Packets to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Organizational Resilience of Pcda Packets

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pcda Packets does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Operational resilience

– The operational resilience strategy in the The PCDA Project of Doctors Without Borders-Spain 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.

Strong track record of project management

– Pcda Packets is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

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Weaknesses The PCDA Project of Doctors Without Borders-Spain | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of The PCDA Project of Doctors Without Borders-Spain are -

Slow decision making process

– As mentioned earlier in the report, Pcda Packets has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Pcda Packets even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Products dominated business model

– Even though Pcda Packets 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 - The PCDA Project of Doctors Without Borders-Spain should strive to include more intangible value offerings along with its core products and services.

High operating costs

– Compare to the competitors, firm in the HBR case study The PCDA Project of Doctors Without Borders-Spain 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 Pcda Packets 's lucrative customers.

Increasing silos among functional specialists

– The organizational structure of Pcda Packets is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Pcda Packets needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pcda Packets to focus more on services rather than just following the product oriented approach.

Need for greater diversity

– Pcda Packets 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.

Low market penetration in new markets

– Outside its home market of Pcda Packets, firm in the HBR case study The PCDA Project of Doctors Without Borders-Spain needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study The PCDA Project of Doctors Without Borders-Spain, it seems that the employees of Pcda Packets 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study The PCDA Project of Doctors Without Borders-Spain, is just above the industry average. Pcda Packets 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.

High cash cycle compare to competitors

Pcda Packets 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the The PCDA Project of Doctors Without Borders-Spain 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 Pcda Packets has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pcda Packets is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The PCDA Project of Doctors Without Borders-Spain can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities The PCDA Project of Doctors Without Borders-Spain | 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 The PCDA Project of Doctors Without Borders-Spain are -

Developing new processes and practices

– Pcda Packets 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Pcda Packets can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Learning at scale

– Online learning technologies has now opened space for Pcda Packets 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pcda Packets can use these opportunities to build new business models that can help the communities that Pcda Packets operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

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. Pcda Packets 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. Pcda Packets 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.

Loyalty marketing

– Pcda Packets 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Pcda Packets 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.

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 Pcda Packets 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.

Manufacturing automation

– Pcda Packets 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Pcda Packets is facing challenges because of the dominance of functional experts in the organization. The PCDA Project of Doctors Without Borders-Spain 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Pcda Packets can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– Pcda Packets 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.

Building a culture of innovation

– managers at Pcda Packets 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.

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Threats The PCDA Project of Doctors Without Borders-Spain External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study The PCDA Project of Doctors Without Borders-Spain are -

Consumer confidence and its impact on Pcda Packets 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain .

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 Pcda Packets in the Sales & Marketing sector and impact the bottomline of the organization.

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. Pcda Packets 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.

Stagnating economy with rate increase

– Pcda Packets 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.

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 Pcda Packets.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Pcda Packets in the Sales & Marketing industry. The Sales & Marketing 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.

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.

Shortening product life cycle

– it is one of the major threat that Pcda Packets is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Pcda Packets 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The PCDA Project of Doctors Without Borders-Spain, Pcda Packets 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 .

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 Pcda Packets business can come under increasing regulations regarding data privacy, data security, etc.

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. Pcda Packets needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of The PCDA Project of Doctors Without Borders-Spain 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 The PCDA Project of Doctors Without Borders-Spain 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 The PCDA Project of Doctors Without Borders-Spain 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 The PCDA Project of Doctors Without Borders-Spain 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 The PCDA Project of Doctors Without Borders-Spain 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 Pcda Packets needs to make to build a sustainable competitive advantage.

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