Swot Analysis of "Genzyme Corp.: Henri Termeer, President and CEO, Video" written by Elizabeth Olmsted Teisberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Genzyme Ceredase facing as an external strategic factors. Some of the topics covered in Genzyme Corp.: Henri Termeer, President and CEO, Video case study are - Strategic Management Strategies, Managing uncertainty, Product development and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Genzyme Corp.: Henri Termeer, President and CEO, Video casestudy better are - – increasing transportation and logistics costs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
there is backlash against globalization, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Genzyme Corp.: Henri Termeer, President and CEO, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genzyme Corp.: Henri Termeer, President and CEO, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Genzyme Ceredase, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Genzyme Ceredase 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 Genzyme Corp.: Henri Termeer, President and CEO, Video can be done for the following purposes –
1. Strategic planning using facts provided in Genzyme Corp.: Henri Termeer, President and CEO, Video case study
2. Improving business portfolio management of Genzyme Ceredase
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 Genzyme Ceredase
Strengths Genzyme Corp.: Henri Termeer, President and CEO, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Genzyme Ceredase in Genzyme Corp.: Henri Termeer, President and CEO, Video Harvard Business Review case study are -
Training and development
– Genzyme Ceredase has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Genzyme Corp.: Henri Termeer, President and CEO, Video 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.
Innovation driven organization
– Genzyme Ceredase is one of the most innovative firm in sector. Manager in Genzyme Corp.: Henri Termeer, President and CEO, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Genzyme Ceredase digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Genzyme Ceredase 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.
Highly skilled collaborators
– Genzyme Ceredase 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 Genzyme Corp.: Henri Termeer, President and CEO, Video HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Genzyme Corp.: Henri Termeer, President and CEO, Video firm has clearly differentiated products in the market place. This has enabled Genzyme Ceredase to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Genzyme Ceredase to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Genzyme Ceredase 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 Genzyme Corp.: Henri Termeer, President and CEO, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Genzyme Ceredase is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Genzyme Ceredase has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Genzyme Ceredase to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Strategy & Execution field
– Genzyme Ceredase 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 Genzyme Ceredase in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Genzyme Ceredase is present in almost all the verticals within the industry. This has provided firm in Genzyme Corp.: Henri Termeer, President and CEO, Video 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.
High switching costs
– The high switching costs that Genzyme Ceredase has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Genzyme Ceredase in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Genzyme Corp.: Henri Termeer, President and CEO, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genzyme Corp.: Henri Termeer, President and CEO, Video are -
Products dominated business model
– Even though Genzyme Ceredase 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 - Genzyme Corp.: Henri Termeer, President and CEO, Video should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Genzyme Ceredase 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Genzyme Corp.: Henri Termeer, President and CEO, Video, it seems that the employees of Genzyme Ceredase 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.
Low market penetration in new markets
– Outside its home market of Genzyme Ceredase, firm in the HBR case study Genzyme Corp.: Henri Termeer, President and CEO, Video needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Genzyme Ceredase is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Genzyme Ceredase needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Genzyme Ceredase to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Genzyme Ceredase 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.
Need for greater diversity
– Genzyme Ceredase 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 cash cycle compare to competitors
Genzyme Ceredase has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Genzyme Ceredase 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. Genzyme Ceredase 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.
Lack of clear differentiation of Genzyme Ceredase products
– To increase the profitability and margins on the products, Genzyme Ceredase needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Genzyme Ceredase supply chain. Even after few cautionary changes mentioned in the HBR case study - Genzyme Corp.: Henri Termeer, President and CEO, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Genzyme Ceredase vulnerable to further global disruptions in South East Asia.
Opportunities Genzyme Corp.: Henri Termeer, President and CEO, Video | 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 Genzyme Corp.: Henri Termeer, President and CEO, Video are -
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. Genzyme Ceredase can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Genzyme Ceredase 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.
Manufacturing automation
– Genzyme Ceredase 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.
Loyalty marketing
– Genzyme Ceredase 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Genzyme Ceredase is facing challenges because of the dominance of functional experts in the organization. Genzyme Corp.: Henri Termeer, President and CEO, Video 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.
Buying journey improvements
– Genzyme Ceredase can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Genzyme Corp.: Henri Termeer, President and CEO, Video 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.
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. Genzyme Ceredase 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. Genzyme Ceredase 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.
Using analytics as competitive advantage
– Genzyme Ceredase 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 Genzyme Corp.: Henri Termeer, President and CEO, Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Genzyme Ceredase to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Genzyme Ceredase 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.
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. Genzyme Ceredase 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, Genzyme Ceredase can use these opportunities to build new business models that can help the communities that Genzyme Ceredase operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Genzyme Ceredase 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.
Creating value in data economy
– The success of analytics program of Genzyme Ceredase has opened avenues for new revenue streams for the organization in the industry. This can help Genzyme Ceredase to build a more holistic ecosystem as suggested in the Genzyme Corp.: Henri Termeer, President and CEO, Video case study. Genzyme Ceredase can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Genzyme Corp.: Henri Termeer, President and CEO, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genzyme Corp.: Henri Termeer, President and CEO, Video are -
Regulatory challenges
– Genzyme Ceredase 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.
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. Genzyme Ceredase can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Genzyme Ceredase has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Genzyme Ceredase needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Genzyme Ceredase is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Genzyme Ceredase 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. Genzyme Ceredase needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Genzyme Ceredase 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. Genzyme Ceredase 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.
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 Genzyme Ceredase business can come under increasing regulations regarding data privacy, data security, 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.
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 Genzyme Ceredase.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Genzyme Ceredase 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 Genzyme Corp.: Henri Termeer, President and CEO, Video .
Increasing wage structure of Genzyme Ceredase
– 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 Genzyme Ceredase.
Weighted SWOT Analysis of Genzyme Corp.: Henri Termeer, President and CEO, Video 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 Genzyme Corp.: Henri Termeer, President and CEO, Video 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 Genzyme Corp.: Henri Termeer, President and CEO, Video 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 Genzyme Corp.: Henri Termeer, President and CEO, Video 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 Genzyme Corp.: Henri Termeer, President and CEO, Video 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 Genzyme Ceredase needs to make to build a sustainable competitive advantage.