Pharmaxis: A Star Performer at Commercialization Crossroads SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pharmaxis: A Star Performer at Commercialization Crossroads
Pharmaxis is a new biotechnology venture based in Sydney, Australia. Brings to light the important stages in the growth of the company and the commercialization decisions the company faced. Highlights both the uniqueness of some of the managing team's decisions and their understanding of the industry and underscores the point that good decision-making can overcome apparent barriers to growth. The company is now at a key decision point. It needs to determine the best approach to commercialize its first diagnostic product. The wrong decision could waste scarce financial resources, divert the time of managers and researchers, and jeopardize the reputation of the firm with potential investors.
Swot Analysis of "Pharmaxis: A Star Performer at Commercialization Crossroads" written by Deepak Sardana, Don Scott-Kemmis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pharmaxis Commercialization facing as an external strategic factors. Some of the topics covered in Pharmaxis: A Star Performer at Commercialization Crossroads case study are - Strategic Management Strategies, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Pharmaxis: A Star Performer at Commercialization Crossroads casestudy better are - – there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Pharmaxis: A Star Performer at Commercialization Crossroads
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pharmaxis: A Star Performer at Commercialization Crossroads case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pharmaxis Commercialization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pharmaxis Commercialization 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 Pharmaxis: A Star Performer at Commercialization Crossroads can be done for the following purposes –
1. Strategic planning using facts provided in Pharmaxis: A Star Performer at Commercialization Crossroads case study
2. Improving business portfolio management of Pharmaxis Commercialization
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 Pharmaxis Commercialization
Strengths Pharmaxis: A Star Performer at Commercialization Crossroads | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pharmaxis Commercialization in Pharmaxis: A Star Performer at Commercialization Crossroads Harvard Business Review case study are -
Ability to recruit top talent
– Pharmaxis Commercialization is one of the leading recruiters in the industry. Managers in the Pharmaxis: A Star Performer at Commercialization Crossroads are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Pharmaxis Commercialization is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Pharmaxis Commercialization has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pharmaxis Commercialization 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.
Ability to lead change in Strategy & Execution field
– Pharmaxis Commercialization 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 Pharmaxis Commercialization in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Pharmaxis Commercialization 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.
Low bargaining power of suppliers
– Suppliers of Pharmaxis Commercialization in the sector have low bargaining power. Pharmaxis: A Star Performer at Commercialization Crossroads has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pharmaxis Commercialization to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Pharmaxis Commercialization
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pharmaxis Commercialization does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Pharmaxis: A Star Performer at Commercialization Crossroads firm has clearly differentiated products in the market place. This has enabled Pharmaxis Commercialization to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Pharmaxis Commercialization to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Pharmaxis Commercialization has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Pharmaxis: A Star Performer at Commercialization Crossroads HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Pharmaxis Commercialization is one of the most innovative firm in sector. Manager in Pharmaxis: A Star Performer at Commercialization Crossroads Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Pharmaxis Commercialization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pharmaxis Commercialization 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.
High brand equity
– Pharmaxis Commercialization has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pharmaxis Commercialization to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Pharmaxis: A Star Performer at Commercialization Crossroads | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pharmaxis: A Star Performer at Commercialization Crossroads are -
Aligning sales with marketing
– It come across in the case study Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis: A Star Performer at Commercialization Crossroads can leverage the sales team experience to cultivate customer relationships as Pharmaxis Commercialization is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pharmaxis: A Star Performer at Commercialization Crossroads, it seems that the employees of Pharmaxis Commercialization 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pharmaxis Commercialization 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pharmaxis Commercialization is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pharmaxis: A Star Performer at Commercialization Crossroads can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pharmaxis: A Star Performer at Commercialization Crossroads, in the dynamic environment Pharmaxis Commercialization has struggled to respond to the nimble upstart competition. Pharmaxis Commercialization has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Pharmaxis Commercialization 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.
No frontier risks strategy
– After analyzing the HBR case study Pharmaxis: A Star Performer at Commercialization Crossroads, 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.
Low market penetration in new markets
– Outside its home market of Pharmaxis Commercialization, firm in the HBR case study Pharmaxis: A Star Performer at Commercialization Crossroads needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pharmaxis: A Star Performer at Commercialization Crossroads, is just above the industry average. Pharmaxis Commercialization 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.
Need for greater diversity
– Pharmaxis Commercialization 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 bargaining power of channel partners
– Because of the regulatory requirements, Deepak Sardana, Don Scott-Kemmis suggests that, Pharmaxis Commercialization 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.
Opportunities Pharmaxis: A Star Performer at Commercialization Crossroads | 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 Pharmaxis: A Star Performer at Commercialization Crossroads are -
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 Pharmaxis Commercialization in the consumer business. Now Pharmaxis Commercialization can target international markets with far fewer capital restrictions requirements than the existing system.
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 Pharmaxis Commercialization 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pharmaxis Commercialization can use these opportunities to build new business models that can help the communities that Pharmaxis Commercialization operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Pharmaxis Commercialization can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Pharmaxis Commercialization can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Pharmaxis Commercialization 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pharmaxis Commercialization 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.
Buying journey improvements
– Pharmaxis Commercialization can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pharmaxis: A Star Performer at Commercialization Crossroads suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pharmaxis Commercialization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Pharmaxis Commercialization 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.
Better consumer reach
– The expansion of the 5G network will help Pharmaxis Commercialization to increase its market reach. Pharmaxis Commercialization 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.
Loyalty marketing
– Pharmaxis Commercialization has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Leveraging digital technologies
– Pharmaxis Commercialization 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.
Threats Pharmaxis: A Star Performer at Commercialization Crossroads External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pharmaxis: A Star Performer at Commercialization Crossroads are -
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 Pharmaxis Commercialization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pharmaxis Commercialization with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Pharmaxis Commercialization is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Pharmaxis Commercialization 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.
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.
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 Pharmaxis Commercialization business can come under increasing regulations regarding data privacy, data security, etc.
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. Pharmaxis Commercialization needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Pharmaxis Commercialization 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.
Technology acceleration in Forth Industrial Revolution
– Pharmaxis Commercialization has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Pharmaxis Commercialization 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.
Stagnating economy with rate increase
– Pharmaxis Commercialization 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
– Pharmaxis Commercialization 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. Pharmaxis Commercialization can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Pharmaxis Commercialization 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pharmaxis Commercialization 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.
Weighted SWOT Analysis of Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis: A Star Performer at Commercialization Crossroads 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 Pharmaxis Commercialization needs to make to build a sustainable competitive advantage.
