Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs
Describes Gilead Sciences' initial experience implementing an access program for delivering its AIDS drug Viread to developing nations in Africa. In April 2003, Gilead announced the Gilead Access Program to make the company's new drug Viread available, at no profit to Gilead, to developing countries. Viread represented a significant advancement in antiretroviral medicines for the treatment of HIV/AIDS with once-a-day dosage, greater effectiveness, and a much improved side-effect profile. Gilead executives expected the Access Program to have an immediate, positive impact on the treatment of HIV/AIDS patients in the world's poorest countries. A year after implementation, however, the Access Program had not led to widespread use of Viread in Africa. Having learned from early missteps, Gilead had to make significant changes to improve the program. It also wanted to expand the Access Program to create greater access to therapies in middle-income regions.
Authors :: David P. Baron, Keith Krehbiel, Brian Tayan
Swot Analysis of "Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs" written by David P. Baron, Keith Krehbiel, Brian Tayan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gilead Viread facing as an external strategic factors. Some of the topics covered in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs case study are - Strategic Management Strategies, Health, Performance measurement, Policy, Public relations, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs casestudy better are - – increasing commodity prices, wage bills are increasing, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%,
cloud computing is disrupting traditional business models, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gilead Viread, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gilead Viread 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs can be done for the following purposes –
1. Strategic planning using facts provided in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs case study
2. Improving business portfolio management of Gilead Viread
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 Gilead Viread
Strengths Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gilead Viread in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Gilead Viread 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 Gilead Viread in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Gilead Viread in the sector have low bargaining power. Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gilead Viread to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Gilead Viread 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Gilead Viread digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gilead Viread 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
– Gilead Viread has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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
- Gilead Viread 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 Gilead Viread is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Gilead Viread 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.
High brand equity
– Gilead Viread has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gilead Viread to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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.
Successful track record of launching new products
– Gilead Viread has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gilead Viread 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.
Innovation driven organization
– Gilead Viread is one of the most innovative firm in sector. Manager in Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Gilead Viread 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs, it seems that the employees of Gilead Viread 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 bargaining power of channel partners
– Because of the regulatory requirements, David P. Baron, Keith Krehbiel, Brian Tayan suggests that, Gilead Viread 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.
Increasing silos among functional specialists
– The organizational structure of Gilead Viread is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Gilead Viread needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gilead Viread to focus more on services rather than just following the product oriented approach.
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 Gilead Viread supply chain. Even after few cautionary changes mentioned in the HBR case study - Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gilead Viread vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs, is just above the industry average. Gilead Viread 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 Gilead Viread 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Viread has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Gilead Viread 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.
Aligning sales with marketing
– It come across in the case study Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs can leverage the sales team experience to cultivate customer relationships as Gilead Viread is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Gilead Viread 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. Gilead Viread 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 Gilead Viread 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 - Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs should strive to include more intangible value offerings along with its core products and services.
Opportunities Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs | 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs are -
Using analytics as competitive advantage
– Gilead Viread 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gilead Viread to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Gilead Viread can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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.
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. Gilead Viread can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gilead Viread 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gilead Viread can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gilead Viread 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gilead Viread is facing challenges because of the dominance of functional experts in the organization. Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gilead Viread can use these opportunities to build new business models that can help the communities that Gilead Viread operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Gilead Viread to increase its market reach. Gilead Viread 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.
Developing new processes and practices
– Gilead Viread 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
– Gilead Viread 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.
Creating value in data economy
– The success of analytics program of Gilead Viread has opened avenues for new revenue streams for the organization in the industry. This can help Gilead Viread to build a more holistic ecosystem as suggested in the Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs case study. Gilead Viread 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. Gilead Viread can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gilead Viread 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs .
Shortening product life cycle
– it is one of the major threat that Gilead Viread is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 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.
Regulatory challenges
– Gilead Viread 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs, Gilead Viread 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gilead Viread 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.
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 Gilead Viread in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Gilead Viread has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Gilead Viread 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.
Stagnating economy with rate increase
– Gilead Viread 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.
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. Gilead Viread will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Gilead Viread 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. Gilead Viread can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gilead Viread with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Sciences (B): Implementing the Gilead Access Program for HIV Drugs 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 Gilead Viread needs to make to build a sustainable competitive advantage.
