Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

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.

Authors :: David P. Baron

Topics :: Strategy & Execution

Tags :: Marketing, Public relations, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

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 - – challanges to central banks by blockchain based private currencies, increasing commodity prices, there is backlash against globalization, geopolitical disruptions, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, etc

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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.

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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

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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 -

Strong track record of project management

– Requip Gsk is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

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.

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.

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.

Diverse revenue streams

– Requip Gsk is present in almost all the verticals within the industry. This has provided firm in Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome 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.

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.

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.

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.

High switching costs

– The high switching costs that Requip Gsk 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

– 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.

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.

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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 -

Slow decision making process

– As mentioned earlier in the report, Requip Gsk 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. Requip Gsk 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 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.

Slow to strategic competitive environment developments

– As Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome HBR case study mentions - Requip Gsk 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Requip Gsk is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome can help to provide better information regarding products and services. It can also build an online community to further reach out to potential 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.

Capital Spending Reduction

– Even during the low interest decade, Requip Gsk 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.

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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, in the dynamic environment Requip Gsk has struggled to respond to the nimble upstart competition. Requip Gsk has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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.

Skills based hiring

– The stress on hiring functional specialists at Requip Gsk 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, is just above the industry average. Requip Gsk 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.

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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 -

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.

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.

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 Requip Gsk in the consumer business. Now Requip Gsk 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 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.

Manufacturing automation

– Requip Gsk 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.

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.

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.

Building a culture of innovation

– managers at Requip Gsk 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.

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.

Developing new processes and practices

– Requip Gsk can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Requip Gsk can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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.

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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 -

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 .

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.

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.

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.

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.

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.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Requip Gsk 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome, Requip Gsk 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 .

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.

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.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Requip Gsk business can come under increasing regulations regarding data privacy, data security, etc.

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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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