Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999
Describes Pfizer's hostile bid for Warner-Lambert in the fall of 1999. Allows for an evaluation of the possible synergies created and poses the question as to whether Pfizer will pay too much.
Swot Analysis of "Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999" written by Stephen P. Bradley, Matthew Sandoval includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lambert Pfizer's facing as an external strategic factors. Some of the topics covered in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 casestudy better are - – increasing energy prices, geopolitical disruptions, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic ,
there is backlash against globalization, technology disruption, etc
Introduction to SWOT Analysis of Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lambert Pfizer's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lambert Pfizer's 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 can be done for the following purposes –
1. Strategic planning using facts provided in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 case study
2. Improving business portfolio management of Lambert Pfizer's
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 Lambert Pfizer's
Strengths Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lambert Pfizer's in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 Harvard Business Review case study are -
Learning organization
- Lambert Pfizer's 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 Lambert Pfizer's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Lambert Pfizer's 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.
Operational resilience
– The operational resilience strategy in the Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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.
Effective Research and Development (R&D)
– Lambert Pfizer's 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 - 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
– Lambert Pfizer's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Lambert Pfizer's is one of the leading recruiters in the industry. Managers in the Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 brand equity
– Lambert Pfizer's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lambert Pfizer's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Strategy & Execution field
– Lambert Pfizer's 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 Lambert Pfizer's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Lambert Pfizer's is one of the most innovative firm in sector. Manager in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Lambert Pfizer's is present in almost all the verticals within the industry. This has provided firm in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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.
Training and development
– Lambert Pfizer's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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.
Superior customer experience
– The customer experience strategy of Lambert Pfizer's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 are -
No frontier risks strategy
– After analyzing the HBR case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, 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.
Slow to strategic competitive environment developments
– As Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 HBR case study mentions - Lambert Pfizer's 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, Lambert Pfizer's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Lambert Pfizer's 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 - Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, it seems that the employees of Lambert Pfizer's 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.
Interest costs
– Compare to the competition, Lambert Pfizer's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Low market penetration in new markets
– Outside its home market of Lambert Pfizer's, firm in the HBR case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Lambert Pfizer's products
– To increase the profitability and margins on the products, Lambert Pfizer's needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Lambert Pfizer's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, in the dynamic environment Lambert Pfizer's has struggled to respond to the nimble upstart competition. Lambert Pfizer's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Lambert Pfizer's has relatively successful track record of launching new products.
Opportunities Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 | 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lambert Pfizer's is facing challenges because of the dominance of functional experts in the organization. Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lambert Pfizer's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lambert Pfizer's 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 Lambert Pfizer's to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Lambert Pfizer's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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.
Manufacturing automation
– Lambert Pfizer's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lambert Pfizer's 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.
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 Lambert Pfizer's in the consumer business. Now Lambert Pfizer's can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Lambert Pfizer's 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.
Using analytics as competitive advantage
– Lambert Pfizer's 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lambert Pfizer's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Lambert Pfizer's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lambert Pfizer's can use these opportunities to build new business models that can help the communities that Lambert Pfizer's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Lambert Pfizer's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lambert Pfizer's 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.
Threats Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 are -
Consumer confidence and its impact on Lambert Pfizer's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lambert Pfizer's 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lambert Pfizer's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Lambert Pfizer's 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.
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. Lambert Pfizer's 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.
Shortening product life cycle
– it is one of the major threat that Lambert Pfizer's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Lambert Pfizer's 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.
Environmental challenges
– Lambert Pfizer's 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. Lambert Pfizer's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Technology acceleration in Forth Industrial Revolution
– Lambert Pfizer's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Lambert Pfizer's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lambert Pfizer's 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.
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 Lambert Pfizer's in the Strategy & Execution sector and impact the bottomline of the organization.
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. Lambert Pfizer's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Lambert Pfizer's needs to make to build a sustainable competitive advantage.