Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version
Outlines the evolution of Lilly's corporate manufacturing strategy over the past decade. The corporate vice president of manufacturing must decide on the next phase of Lilly's strategy for the early 1990s, as well as to what extent and what role process development will play. Provides data outlining three different points in the product development process at which manufacturing process development might be initiated. Using learning curve concepts and data, students can estimate the economic costs and benefits (as well as organizational issues and challenges) associated with each. Illustrates process improvement's substantial impact in a capital-intensive industry, describes possible roles of manufacturing process technology in an industry that has viewed product R&D as its primary competitive advantage, illustrates phases through which manufacturing can evolve in pursuit of comparative advantage, and introduces students to a challenging and changing industry.
Authors :: Steven C. Wheelwright, Gary P. Pisano, Jonathan West
Swot Analysis of "Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version" written by Steven C. Wheelwright, Gary P. Pisano, Jonathan West includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Manufacturing Lilly's facing as an external strategic factors. Some of the topics covered in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version case study are - Strategic Management Strategies, Manufacturing, Product development, Productivity and Technology & Operations.
Some of the macro environment factors that can be used to understand the Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version casestudy better are - – central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing commodity prices,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Manufacturing Lilly's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Manufacturing Lilly's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version case study
2. Improving business portfolio management of Manufacturing Lilly's
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Manufacturing Lilly's
Strengths Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Manufacturing Lilly's in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version Harvard Business Review case study are -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Manufacturing Lilly's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Manufacturing Lilly's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Organizational Resilience of Manufacturing Lilly's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Manufacturing Lilly's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Technology & Operations field
– Manufacturing Lilly's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Manufacturing Lilly's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Manufacturing Lilly's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Manufacturing Lilly's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Steven C. Wheelwright, Gary P. Pisano, Jonathan West 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.
Training and development
– Manufacturing Lilly's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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.
Superior customer experience
– The customer experience strategy of Manufacturing Lilly's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Manufacturing Lilly's is one of the most innovative firm in sector. Manager in Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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.
High switching costs
– The high switching costs that Manufacturing Lilly's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Manufacturing Lilly's 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Manufacturing Lilly's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Manufacturing Lilly's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version are -
Skills based hiring
– The stress on hiring functional specialists at Manufacturing Lilly's 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.
Capital Spending Reduction
– Even during the low interest decade, Manufacturing Lilly's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Manufacturing Lilly's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 bargaining power of channel partners
– Because of the regulatory requirements, Steven C. Wheelwright, Gary P. Pisano, Jonathan West suggests that, Manufacturing Lilly's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Manufacturing Lilly's supply chain. Even after few cautionary changes mentioned in the HBR case study - Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Manufacturing Lilly's vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Manufacturing Lilly's products
– To increase the profitability and margins on the products, Manufacturing Lilly's needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Manufacturing Lilly's, firm in the HBR case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Manufacturing Lilly's 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version, is just above the industry average. Manufacturing Lilly's 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.
Increasing silos among functional specialists
– The organizational structure of Manufacturing Lilly's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Manufacturing Lilly's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Manufacturing Lilly's to focus more on services rather than just following the product oriented approach.
Opportunities Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version | 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version are -
Loyalty marketing
– Manufacturing Lilly's 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.
Buying journey improvements
– Manufacturing Lilly's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Manufacturing Lilly's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Manufacturing Lilly's 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Manufacturing Lilly's 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 Manufacturing Lilly's in the consumer business. Now Manufacturing Lilly's can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Manufacturing Lilly's 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, Manufacturing Lilly's is facing challenges because of the dominance of functional experts in the organization. Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Manufacturing Lilly's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Manufacturing Lilly's can use these opportunities to build new business models that can help the communities that Manufacturing Lilly's operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Manufacturing Lilly's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Manufacturing Lilly's to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Manufacturing Lilly's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Manufacturing Lilly's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Manufacturing Lilly's to increase its market reach. Manufacturing Lilly's 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.
Creating value in data economy
– The success of analytics program of Manufacturing Lilly's has opened avenues for new revenue streams for the organization in the industry. This can help Manufacturing Lilly's to build a more holistic ecosystem as suggested in the Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version case study. Manufacturing Lilly's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version are -
High dependence on third party suppliers
– Manufacturing Lilly's 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 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.
Increasing wage structure of Manufacturing Lilly's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Manufacturing Lilly's.
Regulatory challenges
– Manufacturing Lilly's 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 Technology & Operations industry regulations.
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 Manufacturing Lilly's.
Consumer confidence and its impact on Manufacturing Lilly's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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 Manufacturing Lilly's in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Manufacturing Lilly's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Manufacturing Lilly's business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Manufacturing Lilly's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Manufacturing Lilly's 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.
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. Manufacturing Lilly's needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Manufacturing Lilly's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Manufacturing Lilly's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version 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 Manufacturing Lilly's needs to make to build a sustainable competitive advantage.
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