Case Study Description of Genzyme Corp.: Strategic Challenges with Ceredase
Genzyme Corp., one of the largest biotechnology companies, has succeeded in developing, manufacturing, and commercializing its first therapeutic, a treatment for a rare genetic disease. Analysis of the case requires students to identify and understand how Genzyme has designed its strategy to effectively manage, mitigate, or exploit the uncertainties it had faced in the past. In 1993, the company faces challenges in managing future uncertainties involving the product's market, manufacturing, and pricing.
Authors :: Elizabeth Olmsted Teisberg, Sharon Rossi
Swot Analysis of "Genzyme Corp.: Strategic Challenges with Ceredase" written by Elizabeth Olmsted Teisberg, Sharon Rossi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Genzyme Uncertainties facing as an external strategic factors. Some of the topics covered in Genzyme Corp.: Strategic Challenges with Ceredase case study are - Strategic Management Strategies, Managing uncertainty, Product development, Risk management, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Genzyme Corp.: Strategic Challenges with Ceredase casestudy better are - – cloud computing is disrupting traditional business models, wage bills are increasing, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Genzyme Corp.: Strategic Challenges with Ceredase
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genzyme Corp.: Strategic Challenges with Ceredase case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Genzyme Uncertainties, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Genzyme Uncertainties 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 Genzyme Corp.: Strategic Challenges with Ceredase can be done for the following purposes –
1. Strategic planning using facts provided in Genzyme Corp.: Strategic Challenges with Ceredase case study
2. Improving business portfolio management of Genzyme Uncertainties
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 Genzyme Uncertainties
Strengths Genzyme Corp.: Strategic Challenges with Ceredase | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Genzyme Uncertainties in Genzyme Corp.: Strategic Challenges with Ceredase Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Genzyme Uncertainties 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 Genzyme Uncertainties in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Genzyme Uncertainties 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 Genzyme Corp.: Strategic Challenges with Ceredase - 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 Genzyme Uncertainties
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Genzyme Uncertainties does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Genzyme Uncertainties is one of the leading recruiters in the industry. Managers in the Genzyme Corp.: Strategic Challenges with Ceredase are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Genzyme Uncertainties 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 Genzyme Uncertainties 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.
Learning organization
- Genzyme Uncertainties 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 Genzyme Uncertainties is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Genzyme Corp.: Strategic Challenges with Ceredase Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Genzyme Uncertainties is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Genzyme Uncertainties has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Genzyme Uncertainties to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Genzyme Uncertainties is one of the most innovative firm in sector. Manager in Genzyme Corp.: Strategic Challenges with Ceredase Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Genzyme Uncertainties 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.
Analytics focus
– Genzyme Uncertainties 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 Elizabeth Olmsted Teisberg, Sharon Rossi 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.
Weaknesses Genzyme Corp.: Strategic Challenges with Ceredase | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genzyme Corp.: Strategic Challenges with Ceredase are -
Increasing silos among functional specialists
– The organizational structure of Genzyme Uncertainties is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Genzyme Uncertainties needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Genzyme Uncertainties to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Genzyme Corp.: Strategic Challenges with Ceredase HBR case study mentions - Genzyme Uncertainties 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Genzyme Uncertainties 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Genzyme Corp.: Strategic Challenges with Ceredase, it seems that the employees of Genzyme Uncertainties 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.
High cash cycle compare to competitors
Genzyme Uncertainties 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 operating costs
– Compare to the competitors, firm in the HBR case study Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Uncertainties 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Genzyme Uncertainties 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.
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 Genzyme Uncertainties supply chain. Even after few cautionary changes mentioned in the HBR case study - Genzyme Corp.: Strategic Challenges with Ceredase, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Genzyme Uncertainties vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Genzyme Corp.: Strategic Challenges with Ceredase, is just above the industry average. Genzyme Uncertainties 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Genzyme Uncertainties is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Genzyme Corp.: Strategic Challenges with Ceredase 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Uncertainties has relatively successful track record of launching new products.
Opportunities Genzyme Corp.: Strategic Challenges with Ceredase | 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 Genzyme Corp.: Strategic Challenges with Ceredase are -
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 Genzyme Uncertainties 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Genzyme Uncertainties 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.
Learning at scale
– Online learning technologies has now opened space for Genzyme Uncertainties 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.
Better consumer reach
– The expansion of the 5G network will help Genzyme Uncertainties to increase its market reach. Genzyme Uncertainties will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Genzyme Uncertainties 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.
Using analytics as competitive advantage
– Genzyme Uncertainties 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 Genzyme Corp.: Strategic Challenges with Ceredase - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Genzyme Uncertainties to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Genzyme Uncertainties 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 Genzyme Uncertainties to hire the very best people irrespective of their geographical location.
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. Genzyme Uncertainties can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Genzyme Uncertainties has opened avenues for new revenue streams for the organization in the industry. This can help Genzyme Uncertainties to build a more holistic ecosystem as suggested in the Genzyme Corp.: Strategic Challenges with Ceredase case study. Genzyme Uncertainties can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Genzyme Uncertainties 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.
Developing new processes and practices
– Genzyme Uncertainties 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.
Buying journey improvements
– Genzyme Uncertainties can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Genzyme Corp.: Strategic Challenges with Ceredase 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.
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. Genzyme Uncertainties 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. Genzyme Uncertainties 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.
Threats Genzyme Corp.: Strategic Challenges with Ceredase External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genzyme Corp.: Strategic Challenges with Ceredase are -
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 Genzyme Uncertainties in the Strategy & Execution sector and impact the bottomline of the organization.
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. Genzyme Uncertainties needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Genzyme Uncertainties with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Consumer confidence and its impact on Genzyme Uncertainties 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
– Genzyme Uncertainties has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Genzyme Uncertainties 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.
Regulatory challenges
– Genzyme Uncertainties needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Environmental challenges
– Genzyme Uncertainties 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. Genzyme Uncertainties can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Stagnating economy with rate increase
– Genzyme Uncertainties 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.
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 Genzyme Uncertainties business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Genzyme Uncertainties 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 Genzyme Corp.: Strategic Challenges with Ceredase .
High dependence on third party suppliers
– Genzyme Uncertainties 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.
Weighted SWOT Analysis of Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Corp.: Strategic Challenges with Ceredase 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 Genzyme Uncertainties needs to make to build a sustainable competitive advantage.
