Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing
Ocimum Biosolutions, a start-up Indian bioinformatics venture in 2000, had established a presence in Europe and the United States by 2010. The contract research outsourcing industry was expected to continue to grow, as large pharmaceutical companies in industrialized countries were outsourcing work at all stages of the drug development life cycle - from discovery research to clinical trials designed to accelerate drug development as established drugs came off patent. The current challenges for Ocimum were continued growth and the ability to manage expansion while balancing risk. Anu Acharya, Ocimum's CEO, was considering possible solutions.
Swot Analysis of "Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing" written by Gita Surie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ocimum Bioinformatics facing as an external strategic factors. Some of the topics covered in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study are - Strategic Management Strategies, Entrepreneurship, Globalization, Growth strategy, Managing people, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing casestudy better are - – challanges to central banks by blockchain based private currencies, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ocimum Bioinformatics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing can be done for the following purposes –
1. Strategic planning using facts provided in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study
2. Improving business portfolio management of Ocimum Bioinformatics
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 Ocimum Bioinformatics
Strengths Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ocimum Bioinformatics in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing Harvard Business Review case study are -
Diverse revenue streams
– Ocimum Bioinformatics is present in almost all the verticals within the industry. This has provided firm in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ocimum Bioinformatics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ocimum Bioinformatics 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.
Cross disciplinary teams
– Horizontal connected teams at the Ocimum Bioinformatics are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Organizational Resilience of Ocimum Bioinformatics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ocimum Bioinformatics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Ocimum Bioinformatics is one of the most innovative firm in sector. Manager in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Ocimum Bioinformatics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Ability to lead change in Strategy & Execution field
– Ocimum Bioinformatics 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 Ocimum Bioinformatics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Ocimum Bioinformatics is one of the leading recruiters in the industry. Managers in the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Ocimum Bioinformatics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ocimum Bioinformatics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing, is just above the industry average. Ocimum Bioinformatics 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 strategic competitive environment developments
– As Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing HBR case study mentions - Ocimum Bioinformatics 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.
Need for greater diversity
– Ocimum Bioinformatics 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 cash cycle compare to competitors
Ocimum Bioinformatics 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.
Products dominated business model
– Even though Ocimum Bioinformatics 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 - Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Ocimum Bioinformatics products
– To increase the profitability and margins on the products, Ocimum Bioinformatics needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Ocimum Bioinformatics 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ocimum Bioinformatics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Ocimum Bioinformatics is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ocimum Bioinformatics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ocimum Bioinformatics to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Gita Surie suggests that, Ocimum Bioinformatics 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing, in the dynamic environment Ocimum Bioinformatics has struggled to respond to the nimble upstart competition. Ocimum Bioinformatics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing | 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are -
Leveraging digital technologies
– Ocimum Bioinformatics 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.
Creating value in data economy
– The success of analytics program of Ocimum Bioinformatics has opened avenues for new revenue streams for the organization in the industry. This can help Ocimum Bioinformatics to build a more holistic ecosystem as suggested in the Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing case study. Ocimum Bioinformatics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Ocimum Bioinformatics 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.
Buying journey improvements
– Ocimum Bioinformatics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Developing new processes and practices
– Ocimum Bioinformatics 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ocimum Bioinformatics 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 Ocimum Bioinformatics to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ocimum Bioinformatics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ocimum Bioinformatics 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.
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. Ocimum Bioinformatics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Ocimum Bioinformatics 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. Ocimum Bioinformatics 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.
Loyalty marketing
– Ocimum Bioinformatics 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ocimum Bioinformatics can use these opportunities to build new business models that can help the communities that Ocimum Bioinformatics operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ocimum Bioinformatics is facing challenges because of the dominance of functional experts in the organization. Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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.
Threats Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing are -
Stagnating economy with rate increase
– Ocimum Bioinformatics 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 Ocimum Bioinformatics
– 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 Ocimum Bioinformatics.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ocimum Bioinformatics 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.
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. Ocimum Bioinformatics will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Ocimum Bioinformatics is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Ocimum Bioinformatics has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ocimum Bioinformatics 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.
Environmental challenges
– Ocimum Bioinformatics 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. Ocimum Bioinformatics can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Ocimum Bioinformatics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ocimum Bioinformatics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ocimum Bioinformatics in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Ocimum Bioinformatics 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Biosolutions: From Bioinformatics to Integrated Custom Research Outsourcing 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 Ocimum Bioinformatics needs to make to build a sustainable competitive advantage.
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