New Model for the Pharmaceutical Industry: The Institute for OneWorld Health SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New Model for the Pharmaceutical Industry: The Institute for OneWorld Health
Introduces the Institute for OneWorld Health (IOWH), a company dedicated to producing drugs for neglected diseases and the first nonprofit pharmaceutical company in the world. Founded in 2000 by Dr. Victoria Hale, IOWH took expired and donated patent compounds and developed them through all the stages of clinical testing and approval into drugs to fight the world's most destructive diseases, usually occurring in Third World countries where perceived profitable markets did not yet exist. By 2004, IOWH was presenting its first Phase 3 clinical trial results for Paromomycin, a drug developed for Visceral Leishmaniasis, which kills as many as 200,000 people each year in India, Bangladesh, Sudan, Brazil, and Nepal. Its next task was to form partnerships with other organizations to manufacture and distribute the drug. Focuses on Hale's strategy for IOWH going forward, with particular reference to its core competencies and mission.
Swot Analysis of "New Model for the Pharmaceutical Industry: The Institute for OneWorld Health" written by Johanna Mair, Oliver Schoen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iowh Oneworld facing as an external strategic factors. Some of the topics covered in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health case study are - Strategic Management Strategies, Emerging markets, Entrepreneurship, Growth strategy, Innovation, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the New Model for the Pharmaceutical Industry: The Institute for OneWorld Health casestudy better are - – increasing transportation and logistics costs, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of New Model for the Pharmaceutical Industry: The Institute for OneWorld Health
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iowh Oneworld, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iowh Oneworld 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health can be done for the following purposes –
1. Strategic planning using facts provided in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health case study
2. Improving business portfolio management of Iowh Oneworld
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Iowh Oneworld
Strengths New Model for the Pharmaceutical Industry: The Institute for OneWorld Health | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iowh Oneworld in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Iowh Oneworld 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 Iowh Oneworld in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Iowh Oneworld
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iowh Oneworld 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 Iowh Oneworld 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.
Ability to recruit top talent
– Iowh Oneworld is one of the leading recruiters in the industry. Managers in the New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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
– Iowh Oneworld has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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
– Iowh Oneworld has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iowh Oneworld to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Iowh Oneworld 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.
Strong track record of project management
– Iowh Oneworld is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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.
Effective Research and Development (R&D)
– Iowh Oneworld 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Iowh Oneworld in the sector have low bargaining power. New Model for the Pharmaceutical Industry: The Institute for OneWorld Health has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iowh Oneworld to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Iowh Oneworld is one of the most innovative firm in sector. Manager in New Model for the Pharmaceutical Industry: The Institute for OneWorld Health Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses New Model for the Pharmaceutical Industry: The Institute for OneWorld Health | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New Model for the Pharmaceutical Industry: The Institute for OneWorld Health are -
Workers concerns about automation
– As automation is fast increasing in the segment, Iowh Oneworld needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Iowh Oneworld 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. Iowh Oneworld 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.
Low market penetration in new markets
– Outside its home market of Iowh Oneworld, firm in the HBR case study New Model for the Pharmaceutical Industry: The Institute for OneWorld Health needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Iowh Oneworld supply chain. Even after few cautionary changes mentioned in the HBR case study - New Model for the Pharmaceutical Industry: The Institute for OneWorld Health, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iowh Oneworld vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Iowh Oneworld 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Johanna Mair, Oliver Schoen suggests that, Iowh Oneworld 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.
No frontier risks strategy
– After analyzing the HBR case study New Model for the Pharmaceutical Industry: The Institute for OneWorld Health, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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, Iowh Oneworld is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study New Model for the Pharmaceutical Industry: The Institute for OneWorld Health can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As New Model for the Pharmaceutical Industry: The Institute for OneWorld Health HBR case study mentions - Iowh Oneworld 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.
Skills based hiring
– The stress on hiring functional specialists at Iowh Oneworld 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study New Model for the Pharmaceutical Industry: The Institute for OneWorld Health, in the dynamic environment Iowh Oneworld has struggled to respond to the nimble upstart competition. Iowh Oneworld has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities New Model for the Pharmaceutical Industry: The Institute for OneWorld Health | 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iowh Oneworld can use these opportunities to build new business models that can help the communities that Iowh Oneworld operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Iowh Oneworld in the consumer business. Now Iowh Oneworld can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iowh Oneworld 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 Iowh Oneworld to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iowh Oneworld in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Iowh Oneworld has opened avenues for new revenue streams for the organization in the industry. This can help Iowh Oneworld to build a more holistic ecosystem as suggested in the New Model for the Pharmaceutical Industry: The Institute for OneWorld Health case study. Iowh Oneworld can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Iowh Oneworld can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Iowh Oneworld 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.
Developing new processes and practices
– Iowh Oneworld can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Iowh Oneworld can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Iowh Oneworld 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iowh Oneworld to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iowh Oneworld is facing challenges because of the dominance of functional experts in the organization. New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Iowh Oneworld 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. Iowh Oneworld 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.
Better consumer reach
– The expansion of the 5G network will help Iowh Oneworld to increase its market reach. Iowh Oneworld 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New Model for the Pharmaceutical Industry: The Institute for OneWorld Health are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Iowh Oneworld in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Iowh Oneworld
– 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 Iowh Oneworld.
Environmental challenges
– Iowh Oneworld 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. Iowh Oneworld can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Iowh Oneworld business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iowh Oneworld 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iowh Oneworld in the Strategy & Execution industry. The Strategy & Execution 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iowh Oneworld with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Iowh Oneworld 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.
Technology acceleration in Forth Industrial Revolution
– Iowh Oneworld has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Iowh Oneworld needs to keep up with the evolution of technology in the Strategy & Execution 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.
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. Iowh Oneworld needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Iowh Oneworld 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
– Iowh Oneworld 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.
Weighted SWOT Analysis of New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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 New Model for the Pharmaceutical Industry: The Institute for OneWorld Health 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 Iowh Oneworld needs to make to build a sustainable competitive advantage.
