Case Study Description of Invitrogen/Life Technologies (B)
On June 12, 2008, Invitrogen and Applied Biosystems announced plans to merge. The combined company was to be renamed Life Technologies (NASDAQ: LIFE). Invitrogen offered to acquire Applied Biosystems for $6.7 billion in cash and stock. AB shareholders would receive $38 per share in cash and stock, representing a 17 percent premium over the share's closing price on Wednesday, June 11, 2008.
Authors :: Robert A. Burgelman, Robert E. Siegel, Rosy Lee
Swot Analysis of "Invitrogen/Life Technologies (B)" written by Robert A. Burgelman, Robert E. Siegel, Rosy Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Invitrogen Biosystems facing as an external strategic factors. Some of the topics covered in Invitrogen/Life Technologies (B) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Invitrogen/Life Technologies (B) casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, increasing energy prices, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Invitrogen/Life Technologies (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Invitrogen/Life Technologies (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Invitrogen Biosystems, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Invitrogen Biosystems 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 Invitrogen/Life Technologies (B) can be done for the following purposes –
1. Strategic planning using facts provided in Invitrogen/Life Technologies (B) case study
2. Improving business portfolio management of Invitrogen Biosystems
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 Invitrogen Biosystems
Strengths Invitrogen/Life Technologies (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Invitrogen Biosystems in Invitrogen/Life Technologies (B) Harvard Business Review case study are -
Organizational Resilience of Invitrogen Biosystems
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Invitrogen Biosystems 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 Invitrogen Biosystems digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Invitrogen Biosystems 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
– Invitrogen Biosystems has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Invitrogen/Life Technologies (B) 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
– Invitrogen Biosystems has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Invitrogen Biosystems to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Invitrogen Biosystems is one of the most innovative firm in sector. Manager in Invitrogen/Life Technologies (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Invitrogen Biosystems 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 Invitrogen/Life Technologies (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Invitrogen Biosystems 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 Invitrogen Biosystems is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Invitrogen/Life Technologies (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Invitrogen Biosystems 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 Invitrogen Biosystems in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Invitrogen/Life Technologies (B) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Invitrogen/Life Technologies (B) firm has clearly differentiated products in the market place. This has enabled Invitrogen Biosystems to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Invitrogen Biosystems to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Invitrogen Biosystems is present in almost all the verticals within the industry. This has provided firm in Invitrogen/Life Technologies (B) 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.
Superior customer experience
– The customer experience strategy of Invitrogen Biosystems in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Invitrogen/Life Technologies (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Invitrogen/Life Technologies (B) are -
Interest costs
– Compare to the competition, Invitrogen Biosystems 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Invitrogen/Life Technologies (B), in the dynamic environment Invitrogen Biosystems has struggled to respond to the nimble upstart competition. Invitrogen Biosystems has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Invitrogen Biosystems 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 - Invitrogen/Life Technologies (B) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Invitrogen Biosystems 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.
No frontier risks strategy
– After analyzing the HBR case study Invitrogen/Life Technologies (B), 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.
Need for greater diversity
– Invitrogen Biosystems 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.
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 Invitrogen Biosystems supply chain. Even after few cautionary changes mentioned in the HBR case study - Invitrogen/Life Technologies (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Invitrogen Biosystems vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Invitrogen Biosystems is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Invitrogen Biosystems needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Invitrogen Biosystems to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Invitrogen/Life Technologies (B) HBR case study mentions - Invitrogen Biosystems 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 Invitrogen Biosystems 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 operating costs
– Compare to the competitors, firm in the HBR case study Invitrogen/Life Technologies (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Invitrogen Biosystems 's lucrative customers.
Opportunities Invitrogen/Life Technologies (B) | 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 Invitrogen/Life Technologies (B) are -
Learning at scale
– Online learning technologies has now opened space for Invitrogen Biosystems 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.
Loyalty marketing
– Invitrogen Biosystems 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.
Manufacturing automation
– Invitrogen Biosystems 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.
Better consumer reach
– The expansion of the 5G network will help Invitrogen Biosystems to increase its market reach. Invitrogen Biosystems 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.
Buying journey improvements
– Invitrogen Biosystems can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Invitrogen/Life Technologies (B) 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Invitrogen Biosystems is facing challenges because of the dominance of functional experts in the organization. Invitrogen/Life Technologies (B) 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, Invitrogen Biosystems can use these opportunities to build new business models that can help the communities that Invitrogen Biosystems operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Invitrogen Biosystems 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Invitrogen Biosystems 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 Invitrogen Biosystems can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Invitrogen Biosystems can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Invitrogen Biosystems can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Invitrogen Biosystems can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Invitrogen/Life Technologies (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Invitrogen/Life Technologies (B) are -
Regulatory challenges
– Invitrogen Biosystems 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.
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 Invitrogen Biosystems in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Invitrogen Biosystems has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Invitrogen Biosystems 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Invitrogen Biosystems 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.
Environmental challenges
– Invitrogen Biosystems 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. Invitrogen Biosystems can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Invitrogen Biosystems can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Invitrogen Biosystems 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 Invitrogen Biosystems.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Invitrogen Biosystems 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 Invitrogen/Life Technologies (B) .
Shortening product life cycle
– it is one of the major threat that Invitrogen Biosystems is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Invitrogen Biosystems
– 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 Invitrogen Biosystems.
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. Invitrogen Biosystems 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.
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. Invitrogen Biosystems needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Invitrogen/Life Technologies (B) 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 Invitrogen/Life Technologies (B) 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 Invitrogen/Life Technologies (B) 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 Invitrogen/Life Technologies (B) 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 Invitrogen/Life Technologies (B) 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 Invitrogen Biosystems needs to make to build a sustainable competitive advantage.