Gilead Sciences (A): The Gilead Access Program for HIV Drugs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gilead Sciences (A): The Gilead Access Program for HIV Drugs
Describes the initial considerations of Gilead Sciences as it designed a strategy for delivering its AIDS drug Viread to developing nations in Africa. In October 2001, Gilead Sciences received approval from the U.S. Food and Drug Administration for the commercial sale of Viread, a significant new drug for the treatment of HIV/AIDS. Viread proved to be an immediate success, increasing rapidly in sales and market share in the United States within its first year on the market. As Gilead made plans to take the drug global in early 2003, a high priority was to make the drug readily available to millions of people in the least developed nations, where the HIV virus was having its most devastating effects. Pricing and distribution were key considerations. Gilead did not have a distribution system in place in any of these countries, and the price charged in the United States would be prohibitive in the developing world.
Authors :: David P. Baron, Keith Krehbiel, Brian Tayan
Swot Analysis of "Gilead Sciences (A): The Gilead Access Program for HIV Drugs" written by David P. Baron, Keith Krehbiel, Brian Tayan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gilead Viread facing as an external strategic factors. Some of the topics covered in Gilead Sciences (A): The Gilead Access Program for HIV Drugs case study are - Strategic Management Strategies, Health, Performance measurement, Policy, Public relations, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Gilead Sciences (A): The Gilead Access Program for HIV Drugs casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
wage bills are increasing, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Gilead Sciences (A): The Gilead Access Program for HIV Drugs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gilead Sciences (A): The Gilead Access Program for HIV Drugs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gilead Viread, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gilead Viread operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Gilead Sciences (A): The Gilead Access Program for HIV Drugs can be done for the following purposes –
1. Strategic planning using facts provided in Gilead Sciences (A): The Gilead Access Program for HIV Drugs case study
2. Improving business portfolio management of Gilead Viread
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gilead Viread
Strengths Gilead Sciences (A): The Gilead Access Program for HIV Drugs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gilead Viread in Gilead Sciences (A): The Gilead Access Program for HIV Drugs Harvard Business Review case study are -
High brand equity
– Gilead Viread has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gilead Viread to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Gilead Viread digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gilead Viread has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Gilead Viread is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Gilead Viread is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Gilead Viread is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gilead Sciences (A): The Gilead Access Program for HIV Drugs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Gilead Viread has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Gilead Sciences (A): The Gilead Access Program for HIV Drugs HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Gilead Sciences (A): The Gilead Access Program for HIV Drugs Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Gilead Viread
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gilead Viread does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Gilead Viread has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gilead Viread has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Strategy & Execution field
– Gilead Viread is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Gilead Viread in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Gilead Viread is one of the leading recruiters in the industry. Managers in the Gilead Sciences (A): The Gilead Access Program for HIV Drugs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Gilead Viread has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Gilead Viread are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses Gilead Sciences (A): The Gilead Access Program for HIV Drugs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gilead Sciences (A): The Gilead Access Program for HIV Drugs are -
Low market penetration in new markets
– Outside its home market of Gilead Viread, firm in the HBR case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Gilead Viread 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs, it seems that the employees of Gilead Viread don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow decision making process
– As mentioned earlier in the report, Gilead Viread has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Gilead Viread even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs, in the dynamic environment Gilead Viread has struggled to respond to the nimble upstart competition. Gilead Viread has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Gilead Sciences (A): The Gilead Access Program for HIV Drugs can leverage the sales team experience to cultivate customer relationships as Gilead Viread is planning to shift buying processes online.
Lack of clear differentiation of Gilead Viread products
– To increase the profitability and margins on the products, Gilead Viread needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Gilead Viread 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.
High bargaining power of channel partners
– Because of the regulatory requirements, David P. Baron, Keith Krehbiel, Brian Tayan suggests that, Gilead Viread is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Gilead Viread has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Gilead Sciences (A): The Gilead Access Program for HIV Drugs | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs are -
Leveraging digital technologies
– Gilead Viread 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gilead Viread 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 Gilead Viread to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Gilead Viread has opened avenues for new revenue streams for the organization in the industry. This can help Gilead Viread to build a more holistic ecosystem as suggested in the Gilead Sciences (A): The Gilead Access Program for HIV Drugs case study. Gilead Viread can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Gilead Viread in the consumer business. Now Gilead Viread can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Gilead Viread can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Gilead Viread 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.
Buying journey improvements
– Gilead Viread can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gilead Sciences (A): The Gilead Access Program for HIV Drugs suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Gilead Viread can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Building a culture of innovation
– managers at Gilead Viread 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.
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. Gilead Viread 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. Gilead Viread 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gilead Viread 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, Gilead Sciences (A): The Gilead Access Program for HIV Drugs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gilead Viread is facing challenges because of the dominance of functional experts in the organization. Gilead Sciences (A): The Gilead Access Program for HIV Drugs case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Gilead Viread to increase its market reach. Gilead Viread will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Gilead Sciences (A): The Gilead Access Program for HIV Drugs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gilead Viread with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Gilead Viread will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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. Gilead Viread needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs, Gilead Viread may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Regulatory challenges
– Gilead Viread needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Environmental challenges
– Gilead Viread needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Gilead Viread can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Gilead Viread 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.
Stagnating economy with rate increase
– Gilead Viread can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Gilead Viread 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gilead Viread in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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 Gilead Viread.
Shortening product life cycle
– it is one of the major threat that Gilead Viread is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Gilead Sciences (A): The Gilead Access Program for HIV Drugs Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Gilead Sciences (A): The Gilead Access Program for HIV Drugs is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Gilead Sciences (A): The Gilead Access Program for HIV Drugs is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Gilead Viread needs to make to build a sustainable competitive advantage.
