BMS-Biocon Research Center: Growing a Joint Research Venture in India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of BMS-Biocon Research Center: Growing a Joint Research Venture in India
Bristol Myers Squibb, a multi-national pharmaceutical company, is seeking to globalize its R&D strategy while managing costs. It has formed a joint venture with an Indian company, which has worked well, but now faces a strategic decision on how and whether to continue.
Authors :: Vicki L. Sato, Sen Chai, Rich Ballenger, Christine Chi
Topics :: Strategy & Execution
Tags :: Human resource management, International business, Internet, Joint ventures, Research & development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "BMS-Biocon Research Center: Growing a Joint Research Venture in India" written by Vicki L. Sato, Sen Chai, Rich Ballenger, Christine Chi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Squibb Bms facing as an external strategic factors. Some of the topics covered in BMS-Biocon Research Center: Growing a Joint Research Venture in India case study are - Strategic Management Strategies, Human resource management, International business, Internet, Joint ventures, Research & development and Strategy & Execution.
Some of the macro environment factors that can be used to understand the BMS-Biocon Research Center: Growing a Joint Research Venture in India casestudy better are - – increasing commodity prices, increasing transportation and logistics costs, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of BMS-Biocon Research Center: Growing a Joint Research Venture in India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BMS-Biocon Research Center: Growing a Joint Research Venture in India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Squibb Bms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Squibb Bms 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India can be done for the following purposes –
1. Strategic planning using facts provided in BMS-Biocon Research Center: Growing a Joint Research Venture in India case study
2. Improving business portfolio management of Squibb Bms
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 Squibb Bms
Strengths BMS-Biocon Research Center: Growing a Joint Research Venture in India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Squibb Bms in BMS-Biocon Research Center: Growing a Joint Research Venture in India Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– BMS-Biocon Research Center: Growing a Joint Research Venture in India firm has clearly differentiated products in the market place. This has enabled Squibb Bms to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Squibb Bms to invest into research and development (R&D) and innovation.
Learning organization
- Squibb Bms 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 Squibb Bms is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BMS-Biocon Research Center: Growing a Joint Research Venture in India Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Squibb Bms in the sector have low bargaining power. BMS-Biocon Research Center: Growing a Joint Research Venture in India has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Squibb Bms to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Squibb Bms is present in almost all the verticals within the industry. This has provided firm in BMS-Biocon Research Center: Growing a Joint Research Venture in India 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.
Ability to lead change in Strategy & Execution field
– Squibb Bms 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 Squibb Bms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Squibb Bms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Squibb Bms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Squibb Bms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Squibb Bms 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Squibb Bms is one of the leading recruiters in the industry. Managers in the BMS-Biocon Research Center: Growing a Joint Research Venture in India are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Squibb Bms 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 Vicki L. Sato, Sen Chai, Rich Ballenger, Christine Chi 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.
Effective Research and Development (R&D)
– Squibb Bms 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Squibb Bms digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Squibb Bms 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.
Weaknesses BMS-Biocon Research Center: Growing a Joint Research Venture in India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BMS-Biocon Research Center: Growing a Joint Research Venture in India are -
High cash cycle compare to competitors
Squibb Bms 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.
Products dominated business model
– Even though Squibb Bms 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 - BMS-Biocon Research Center: Growing a Joint Research Venture in India should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BMS-Biocon Research Center: Growing a Joint Research Venture in India, is just above the industry average. Squibb Bms 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the BMS-Biocon Research Center: Growing a Joint Research Venture in India HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Squibb Bms has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 Squibb Bms 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Vicki L. Sato, Sen Chai, Rich Ballenger, Christine Chi suggests that, Squibb Bms 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.
No frontier risks strategy
– After analyzing the HBR case study BMS-Biocon Research Center: Growing a Joint Research Venture in India, 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.
Skills based hiring
– The stress on hiring functional specialists at Squibb Bms 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study BMS-Biocon Research Center: Growing a Joint Research Venture in India, in the dynamic environment Squibb Bms has struggled to respond to the nimble upstart competition. Squibb Bms has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Squibb Bms 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.
Increasing silos among functional specialists
– The organizational structure of Squibb Bms is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Squibb Bms needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Squibb Bms to focus more on services rather than just following the product oriented approach.
Opportunities BMS-Biocon Research Center: Growing a Joint Research Venture in India | 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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. Squibb Bms can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Squibb Bms is facing challenges because of the dominance of functional experts in the organization. BMS-Biocon Research Center: Growing a Joint Research Venture in India 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.
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. Squibb Bms 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. Squibb Bms 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Squibb Bms 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.
Manufacturing automation
– Squibb Bms 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.
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. Squibb Bms can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Squibb Bms in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Loyalty marketing
– Squibb Bms 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.
Creating value in data economy
– The success of analytics program of Squibb Bms has opened avenues for new revenue streams for the organization in the industry. This can help Squibb Bms to build a more holistic ecosystem as suggested in the BMS-Biocon Research Center: Growing a Joint Research Venture in India case study. Squibb Bms 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 Squibb Bms in the consumer business. Now Squibb Bms can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Squibb Bms can use these opportunities to build new business models that can help the communities that Squibb Bms operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Squibb Bms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BMS-Biocon Research Center: Growing a Joint Research Venture in India 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Squibb Bms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats BMS-Biocon Research Center: Growing a Joint Research Venture in India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BMS-Biocon Research Center: Growing a Joint Research Venture in India are -
High dependence on third party suppliers
– Squibb Bms 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Squibb Bms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Squibb Bms in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Squibb Bms 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. Squibb Bms can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Squibb Bms
– 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 Squibb Bms.
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.
Environmental challenges
– Squibb Bms 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. Squibb Bms can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Squibb Bms 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India, Squibb Bms 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 .
Consumer confidence and its impact on Squibb Bms 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.
Technology acceleration in Forth Industrial Revolution
– Squibb Bms has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Squibb Bms 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 Squibb Bms 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 BMS-Biocon Research Center: Growing a Joint Research Venture in India 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 Squibb Bms needs to make to build a sustainable competitive advantage.