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 - – talent flight as more people leaving formal jobs, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices,
increasing transportation and logistics costs, wage bills are increasing, 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 -
Low bargaining power of suppliers
– Suppliers of Lambert Pfizer's in the sector have low bargaining power. Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lambert Pfizer's to manage not only supply disruptions but also source products at highly competitive prices.
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.
High switching costs
– The high switching costs that Lambert Pfizer's 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.
Analytics focus
– Lambert Pfizer's 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 Stephen P. Bradley, Matthew Sandoval 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.
Successful track record of launching new products
– Lambert Pfizer's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lambert Pfizer's 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Lambert Pfizer's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lambert Pfizer's 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.
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.
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.
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.
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.
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.
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.
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 -
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Lambert Pfizer's 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Lambert Pfizer's 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.
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.
Need for greater diversity
– Lambert Pfizer's 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 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.
Aligning sales with marketing
– It come across in the case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 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 Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 can leverage the sales team experience to cultivate customer relationships as Lambert Pfizer's is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Lambert Pfizer's 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, Stephen P. Bradley, Matthew Sandoval suggests that, Lambert Pfizer's 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.
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 Lambert Pfizer's supply chain. Even after few cautionary changes mentioned in the HBR case study - Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lambert Pfizer's vulnerable to further global disruptions in South East Asia.
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.
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 -
Creating value in data economy
– The success of analytics program of Lambert Pfizer's has opened avenues for new revenue streams for the organization in the industry. This can help Lambert Pfizer's to build a more holistic ecosystem as suggested in the Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999 case study. Lambert Pfizer's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Lambert Pfizer's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Lambert Pfizer's 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, Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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. Lambert Pfizer's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Lambert Pfizer's 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. Lambert Pfizer's 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.
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.
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.
Developing new processes and practices
– Lambert Pfizer's 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.
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.
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.
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.
Increasing wage structure of Lambert Pfizer's
– 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 Lambert Pfizer's.
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.
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.
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.
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 Lambert Pfizer's.
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 .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Drug Wars: Pfizer's Hostile Bid for Warner-Lambert in 1999, Lambert Pfizer's 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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Lambert Pfizer's business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
