Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome
In 2005, GlaxoSmithKline (GSK) received approval from the Food and Drug Administration (FDA) to market Requip (Ropinirole) for Restless Leg Syndrome. Requip had already been approved for the treatment of Parkinson's disease. Prior the FDA's approval, GSK had already undertaken an intensive promotional campaign for Requip, issuing press releases, advertising to doctors in medical journals, and advertising direct-to-consumer. In 2003 it began developing consumer awareness of RLS with an advertising campaign stating that a "new survey reveals a common yet underrecognized disorder-restless legs syndrome-is keeping Americans awake at night." While GSK explained that its campaign was simply raising awareness about RLS, others disagreed. GSK was accused of 'disease mongering,' or trying to turn normal people with ordinary experiences into patients. This case explores GSK's tactics and the distinction between raising awareness and inappropriately promoting a drug.
Swot Analysis of "Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome" written by David P. Baron includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Requip Gsk facing as an external strategic factors. Some of the topics covered in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome case study are - Strategic Management Strategies, Marketing, Public relations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome casestudy better are - – cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, wage bills are increasing, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Requip Gsk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Requip Gsk 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome can be done for the following purposes –
1. Strategic planning using facts provided in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome case study
2. Improving business portfolio management of Requip Gsk
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 Requip Gsk
Strengths Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Requip Gsk in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Requip Gsk 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 Requip Gsk in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Requip Gsk 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.
Superior customer experience
– The customer experience strategy of Requip Gsk in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome firm has clearly differentiated products in the market place. This has enabled Requip Gsk to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Requip Gsk to invest into research and development (R&D) and innovation.
Learning organization
- Requip Gsk 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 Requip Gsk is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Requip Gsk in the sector have low bargaining power. Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Requip Gsk to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Requip Gsk digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Requip Gsk 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.
Analytics focus
– Requip Gsk is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by David P. Baron can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Requip Gsk
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Requip Gsk does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Requip Gsk has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Requip Gsk to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Requip Gsk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Requip Gsk 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
– Requip Gsk is one of the most innovative firm in sector. Manager in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome are -
Lack of clear differentiation of Requip Gsk products
– To increase the profitability and margins on the products, Requip Gsk needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Requip Gsk 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.
Low market penetration in new markets
– Outside its home market of Requip Gsk, firm in the HBR case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, David P. Baron suggests that, Requip Gsk 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Requip Gsk 's lucrative customers.
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 Requip Gsk supply chain. Even after few cautionary changes mentioned in the HBR case study - Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Requip Gsk vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Requip Gsk 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.
Aligning sales with marketing
– It come across in the case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome can leverage the sales team experience to cultivate customer relationships as Requip Gsk is planning to shift buying processes online.
Products dominated business model
– Even though Requip Gsk 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 - Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, it seems that the employees of Requip Gsk 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
Requip Gsk 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.
Opportunities Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome | 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome are -
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. Requip Gsk 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. Requip Gsk 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Requip Gsk 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 Requip Gsk to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Requip Gsk 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.
Learning at scale
– Online learning technologies has now opened space for Requip Gsk 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.
Creating value in data economy
– The success of analytics program of Requip Gsk has opened avenues for new revenue streams for the organization in the industry. This can help Requip Gsk to build a more holistic ecosystem as suggested in the Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome case study. Requip Gsk can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Requip Gsk can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Requip Gsk can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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.
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. Requip Gsk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Requip Gsk can use these opportunities to build new business models that can help the communities that Requip Gsk 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 Requip Gsk to increase its market reach. Requip Gsk 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.
Leveraging digital technologies
– Requip Gsk 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Requip Gsk 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Requip Gsk can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome are -
Technology acceleration in Forth Industrial Revolution
– Requip Gsk has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Requip Gsk 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Requip Gsk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Requip Gsk is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Requip Gsk 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.
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. Requip Gsk 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.
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 Requip Gsk.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Requip Gsk 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Requip Gsk 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome .
Regulatory challenges
– Requip Gsk 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.
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.
High dependence on third party suppliers
– Requip Gsk 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.
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. Requip Gsk needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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 Requip Gsk needs to make to build a sustainable competitive advantage.
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