Patents and Competitive Dynamics in the Indian Pharma Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Patents and Competitive Dynamics in the Indian Pharma Industry
This case describes the challenges pharmaceutical multinational corporations (MNCs) face in understanding and navigating the intricacies of patent law in India and what they can learn from key pharmaceutical intellectual property (IP) cases being fought in the nation's courts. Like most emerging markets, India is both an exciting new market opportunity for MNCs and a challenging and complex environment in which to operate. For instance, while the patent protection afforded to products and processes is stringent, at least on paper, its enforcement has often been problematic for MNCs and has thwarted MNCs efforts to operate profitably in India. The case study discusses some of the recent judgments handed down by the Indian courts in high-profile pharmaceutical IP cases (such as Novartis' Glivec and Bayer's Nexavar) with a view to helping students formulate strategies to overcome value appropriation problems in India.
Swot Analysis of "Patents and Competitive Dynamics in the Indian Pharma Industry" written by Mridula Anand, Anand Nandkumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mncs Courts facing as an external strategic factors. Some of the topics covered in Patents and Competitive Dynamics in the Indian Pharma Industry case study are - Strategic Management Strategies, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Patents and Competitive Dynamics in the Indian Pharma Industry casestudy better are - – technology disruption, central banks are concerned over increasing inflation, wage bills are increasing, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing commodity prices,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Patents and Competitive Dynamics in the Indian Pharma Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Patents and Competitive Dynamics in the Indian Pharma Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mncs Courts, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry can be done for the following purposes –
1. Strategic planning using facts provided in Patents and Competitive Dynamics in the Indian Pharma Industry case study
2. Improving business portfolio management of Mncs Courts
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 Mncs Courts
Strengths Patents and Competitive Dynamics in the Indian Pharma Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mncs Courts in Patents and Competitive Dynamics in the Indian Pharma Industry Harvard Business Review case study are -
Strong track record of project management
– Mncs Courts 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
– Mncs Courts is one of the leading recruiters in the industry. Managers in the Patents and Competitive Dynamics in the Indian Pharma Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Patents and Competitive Dynamics in the Indian Pharma Industry firm has clearly differentiated products in the market place. This has enabled Mncs Courts to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mncs Courts to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mncs Courts digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mncs Courts 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.
Operational resilience
– The operational resilience strategy in the Patents and Competitive Dynamics in the Indian Pharma Industry 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.
Learning organization
- Mncs Courts 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 Mncs Courts is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Patents and Competitive Dynamics in the Indian Pharma Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Mncs Courts
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mncs Courts does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Mncs Courts in the sector have low bargaining power. Patents and Competitive Dynamics in the Indian Pharma Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mncs Courts to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Mncs Courts 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.
Training and development
– Mncs Courts has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Patents and Competitive Dynamics in the Indian Pharma Industry 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.
Cross disciplinary teams
– Horizontal connected teams at the Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Patents and Competitive Dynamics in the Indian Pharma Industry are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Patents and Competitive Dynamics in the Indian Pharma Industry, in the dynamic environment Mncs Courts has struggled to respond to the nimble upstart competition. Mncs Courts has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Mncs Courts 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. Mncs Courts 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Patents and Competitive Dynamics in the Indian Pharma Industry 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 Mncs Courts has relatively successful track record of launching new products.
Products dominated business model
– Even though Mncs Courts 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 - Patents and Competitive Dynamics in the Indian Pharma Industry should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Patents and Competitive Dynamics in the Indian Pharma Industry 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 Mncs Courts 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Mncs Courts, firm in the HBR case study Patents and Competitive Dynamics in the Indian Pharma Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Mncs Courts 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Mridula Anand, Anand Nandkumar suggests that, Mncs Courts 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 Mncs Courts supply chain. Even after few cautionary changes mentioned in the HBR case study - Patents and Competitive Dynamics in the Indian Pharma Industry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mncs Courts vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Mncs Courts 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.
Skills based hiring
– The stress on hiring functional specialists at Mncs Courts 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.
Opportunities Patents and Competitive Dynamics in the Indian Pharma Industry | 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 Patents and Competitive Dynamics in the Indian Pharma Industry are -
Creating value in data economy
– The success of analytics program of Mncs Courts has opened avenues for new revenue streams for the organization in the industry. This can help Mncs Courts to build a more holistic ecosystem as suggested in the Patents and Competitive Dynamics in the Indian Pharma Industry case study. Mncs Courts can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mncs Courts 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 Mncs Courts to hire the very best people irrespective of their geographical location.
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 Mncs Courts 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.
Learning at scale
– Online learning technologies has now opened space for Mncs Courts 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mncs Courts is facing challenges because of the dominance of functional experts in the organization. Patents and Competitive Dynamics in the Indian Pharma Industry 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. Mncs Courts 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. Mncs Courts 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mncs Courts can use these opportunities to build new business models that can help the communities that Mncs Courts operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mncs Courts can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Mncs Courts can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mncs Courts 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, Patents and Competitive Dynamics in the Indian Pharma Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Mncs Courts 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.
Using analytics as competitive advantage
– Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mncs Courts to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Mncs Courts in the consumer business. Now Mncs Courts can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Patents and Competitive Dynamics in the Indian Pharma Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Patents and Competitive Dynamics in the Indian Pharma Industry are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mncs Courts 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.
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 Mncs Courts business can come under increasing regulations regarding data privacy, data security, etc.
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. Mncs Courts 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.
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 Mncs Courts in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Technology acceleration in Forth Industrial Revolution
– Mncs Courts has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mncs Courts 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.
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. Mncs Courts 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 Patents and Competitive Dynamics in the Indian Pharma Industry, Mncs Courts 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 .
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. Mncs Courts can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Mncs Courts 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. Mncs Courts can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Mncs Courts 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
– Mncs Courts 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.
Weighted SWOT Analysis of Patents and Competitive Dynamics in the Indian Pharma Industry 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 Patents and Competitive Dynamics in the Indian Pharma Industry 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 Patents and Competitive Dynamics in the Indian Pharma Industry 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 Patents and Competitive Dynamics in the Indian Pharma Industry 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 Patents and Competitive Dynamics in the Indian Pharma Industry 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 Mncs Courts needs to make to build a sustainable competitive advantage.
