Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing
Ocimum Biosolutions, a start-up Indian bioinformatics venture in 2000, had established a presence in Europe and the United States by 2010. The contract research outsourcing industry was expected to continue to grow, as large pharmaceutical companies in industrialized countries were outsourcing work at all stages of the drug development life cycle - from discovery research to clinical trials designed to accelerate drug development as established drugs came off patent. The current challenges for Ocimum were continued growth and the ability to manage expansion while balancing risk. Anu Acharya, Ocimum's CEO, was considering possible solutions.
Swot Analysis of "Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing" written by Gita Surie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ocimum Bioinformatics facing as an external strategic factors. Some of the topics covered in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study are - Strategic Management Strategies, Entrepreneurship, Globalization, Growth strategy, Managing people, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ocimum Bioinformatics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing can be done for the following purposes –
1. Strategic planning using facts provided in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study
2. Improving business portfolio management of Ocimum Bioinformatics
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 Ocimum Bioinformatics
Strengths Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ocimum Bioinformatics in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing Harvard Business Review case study are -
Training and development
– Ocimum Bioinformatics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Learning organization
- Ocimum Bioinformatics 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 Ocimum Bioinformatics is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing firm has clearly differentiated products in the market place. This has enabled Ocimum Bioinformatics to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ocimum Bioinformatics to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Ocimum Bioinformatics in the sector have low bargaining power. Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ocimum Bioinformatics to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Ocimum Bioinformatics is one of the leading recruiters in the industry. Managers in the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Ocimum Bioinformatics 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.
Superior customer experience
– The customer experience strategy of Ocimum Bioinformatics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Ocimum Bioinformatics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Ocimum Bioinformatics is one of the most innovative firm in sector. Manager in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Ocimum Bioinformatics 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 Ocimum Bioinformatics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Ocimum Bioinformatics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ocimum Bioinformatics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ocimum Bioinformatics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ocimum Bioinformatics 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.
Weaknesses Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are -
Increasing silos among functional specialists
– The organizational structure of Ocimum Bioinformatics is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ocimum Bioinformatics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ocimum Bioinformatics to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Ocimum Bioinformatics 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 - Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Ocimum Bioinformatics 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ocimum Bioinformatics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing, it seems that the employees of Ocimum Bioinformatics 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.
High cash cycle compare to competitors
Ocimum Bioinformatics 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.
Slow decision making process
– As mentioned earlier in the report, Ocimum Bioinformatics 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. Ocimum Bioinformatics 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.
Aligning sales with marketing
– It come across in the case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing can leverage the sales team experience to cultivate customer relationships as Ocimum Bioinformatics is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing HBR case study mentions - Ocimum Bioinformatics 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.
Need for greater diversity
– Ocimum Bioinformatics 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.
Skills based hiring
– The stress on hiring functional specialists at Ocimum Bioinformatics 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.
Opportunities Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are -
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. Ocimum Bioinformatics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Ocimum Bioinformatics 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 Strategy & Execution segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ocimum Bioinformatics 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.
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. Ocimum Bioinformatics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Ocimum Bioinformatics 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.
Buying journey improvements
– Ocimum Bioinformatics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Developing new processes and practices
– Ocimum Bioinformatics 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.
Manufacturing automation
– Ocimum Bioinformatics can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ocimum Bioinformatics 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.
Learning at scale
– Online learning technologies has now opened space for Ocimum Bioinformatics 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 Ocimum Bioinformatics in the consumer business. Now Ocimum Bioinformatics 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 Ocimum Bioinformatics 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 Ocimum Bioinformatics to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Ocimum Bioinformatics has opened avenues for new revenue streams for the organization in the industry. This can help Ocimum Bioinformatics to build a more holistic ecosystem as suggested in the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study. Ocimum Bioinformatics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Bioinformatics in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Ocimum Bioinformatics has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ocimum Bioinformatics 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.
Shortening product life cycle
– it is one of the major threat that Ocimum Bioinformatics is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ocimum Bioinformatics 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.
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. Ocimum Bioinformatics needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ocimum Bioinformatics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Ocimum Bioinformatics 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 Strategy & Execution 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing, Ocimum Bioinformatics may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ocimum Bioinformatics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Ocimum Bioinformatics 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.
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, Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing .
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 Ocimum Bioinformatics.
Weighted SWOT Analysis of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Bioinformatics needs to make to build a sustainable competitive advantage.
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