The PCDA Project of Doctors Without Borders-Spain SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
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 - – challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , there is backlash against globalization, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
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.
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
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 -
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.
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.
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.
High brand equity
– Pcda Packets has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pcda Packets to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Pcda Packets 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 David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– 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.
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.
Diverse revenue streams
– Pcda Packets is present in almost all the verticals within the industry. This has provided firm in The PCDA Project of Doctors Without Borders-Spain 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.
Learning organization
- Pcda Packets 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 Pcda Packets is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The PCDA Project of Doctors Without Borders-Spain Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
High switching costs
– The high switching costs that Pcda Packets 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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study The PCDA Project of Doctors Without Borders-Spain, 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.
Aligning sales with marketing
– It come across in the case study The PCDA Project of Doctors Without Borders-Spain 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 The PCDA Project of Doctors Without Borders-Spain can leverage the sales team experience to cultivate customer relationships as Pcda Packets is planning to shift buying processes online.
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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Pcda Packets has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 bargaining power of channel partners
– Because of the regulatory requirements, David DRC Roman Coy, Alvaro Gonzalo AHR Hormazabal Reed suggests that, Pcda Packets 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.
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.
Lack of clear differentiation of Pcda Packets products
– To increase the profitability and margins on the products, Pcda Packets needs to provide more differentiated products than what it is currently offering in the marketplace.
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 -
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.
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. Pcda Packets can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Pcda Packets 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 The PCDA Project of Doctors Without Borders-Spain - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pcda Packets to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pcda Packets 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, The PCDA Project of Doctors Without Borders-Spain, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pcda Packets 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 Pcda Packets to hire the very best people irrespective of their geographical location.
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.
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 Pcda Packets in the consumer business. Now Pcda Packets can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Buying journey improvements
– Pcda Packets can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The PCDA Project of Doctors Without Borders-Spain 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.
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 -
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. Pcda Packets can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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 .
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.
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.
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
– Pcda Packets has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Pcda Packets 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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pcda Packets with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 .
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.