Alnylam Pharmaceuticals: Building Value from the IP Estate SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Alnylam Pharmaceuticals: Building Value from the IP Estate
To maximize their effectiveness, color cases should be printed in color.The learning objective of this case is to help students to recognize the interplay between intellectual property (IP) rights and corporate strategy. We do this by examining what is a fairly atypical circumstance today in which a single firm is able to secure what it perceives to be a frontier IP "estate" that blocks competitors from "practicing" in a significant part of the field. Those who elect to sign a license agreement must pay a high license fee and therefore help to fund the company's R&D. The company, meanwhile, must balance the immediate benefit of non-dilutive financing obtainable from the license fees vs. enabling a potential future competitor. The case setting is a lawsuit over a seemingly arcane issue: whether one of the co-owners of a key patent application is properly prosecuting the application. Understanding the issue requires students to progressively build up an understanding of some key aspects of U.S. patent law. Then by piecing together the strategy of the company and how it is driven by its IP position, students can understand why the litigation represents such a high stakes gamble.
Swot Analysis of "Alnylam Pharmaceuticals: Building Value from the IP Estate" written by Willy Shih, Sen Chai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ip License facing as an external strategic factors. Some of the topics covered in Alnylam Pharmaceuticals: Building Value from the IP Estate case study are - Strategic Management Strategies, Intellectual property and Technology & Operations.
Some of the macro environment factors that can be used to understand the Alnylam Pharmaceuticals: Building Value from the IP Estate casestudy better are - – technology disruption, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, supply chains are disrupted by pandemic , wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Alnylam Pharmaceuticals: Building Value from the IP Estate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alnylam Pharmaceuticals: Building Value from the IP Estate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ip License, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ip License 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 Alnylam Pharmaceuticals: Building Value from the IP Estate can be done for the following purposes –
1. Strategic planning using facts provided in Alnylam Pharmaceuticals: Building Value from the IP Estate case study
2. Improving business portfolio management of Ip License
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 Ip License
Strengths Alnylam Pharmaceuticals: Building Value from the IP Estate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ip License in Alnylam Pharmaceuticals: Building Value from the IP Estate Harvard Business Review case study are -
Ability to recruit top talent
– Ip License is one of the leading recruiters in the industry. Managers in the Alnylam Pharmaceuticals: Building Value from the IP Estate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Ip License 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 Alnylam Pharmaceuticals: Building Value from the IP Estate - 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 Ip License
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ip License does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ip License has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ip License to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Ip License in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Ip License 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.
Low bargaining power of suppliers
– Suppliers of Ip License in the sector have low bargaining power. Alnylam Pharmaceuticals: Building Value from the IP Estate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ip License to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Ip License has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ip License 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.
Sustainable margins compare to other players in Technology & Operations industry
– Alnylam Pharmaceuticals: Building Value from the IP Estate firm has clearly differentiated products in the market place. This has enabled Ip License to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ip License to invest into research and development (R&D) and innovation.
Training and development
– Ip License has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Alnylam Pharmaceuticals: Building Value from the IP Estate 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.
High switching costs
– The high switching costs that Ip License 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.
Operational resilience
– The operational resilience strategy in the Alnylam Pharmaceuticals: Building Value from the IP Estate 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.
Weaknesses Alnylam Pharmaceuticals: Building Value from the IP Estate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alnylam Pharmaceuticals: Building Value from the IP Estate are -
Low market penetration in new markets
– Outside its home market of Ip License, firm in the HBR case study Alnylam Pharmaceuticals: Building Value from the IP Estate needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Ip License 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alnylam Pharmaceuticals: Building Value from the IP Estate, in the dynamic environment Ip License has struggled to respond to the nimble upstart competition. Ip License has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Ip License 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Ip License has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Alnylam Pharmaceuticals: Building Value from the IP Estate can leverage the sales team experience to cultivate customer relationships as Ip License is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Ip License is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ip License needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ip License to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Alnylam Pharmaceuticals: Building Value from the IP Estate, is just above the industry average. Ip License 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, Ip License is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Alnylam Pharmaceuticals: Building Value from the IP Estate can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Alnylam Pharmaceuticals: Building Value from the IP Estate HBR case study mentions - Ip License 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.
Interest costs
– Compare to the competition, Ip License 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.
Opportunities Alnylam Pharmaceuticals: Building Value from the IP Estate | 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 Alnylam Pharmaceuticals: Building Value from the IP Estate are -
Buying journey improvements
– Ip License can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Alnylam Pharmaceuticals: Building Value from the IP Estate 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
– Ip License can develop new processes and procedures in Technology & Operations 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ip License is facing challenges because of the dominance of functional experts in the organization. Alnylam Pharmaceuticals: Building Value from the IP Estate 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.
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 Ip License in the consumer business. Now Ip License can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Ip License to increase its market reach. Ip License 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Ip License can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ip License 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ip License can use these opportunities to build new business models that can help the communities that Ip License operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Ip License can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Ip License 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. Ip License 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.
Leveraging digital technologies
– Ip License 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ip License 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 Ip License to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Ip License can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Threats Alnylam Pharmaceuticals: Building Value from the IP Estate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alnylam Pharmaceuticals: Building Value from the IP Estate are -
Technology acceleration in Forth Industrial Revolution
– Ip License has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ip License needs to keep up with the evolution of technology in the Technology & Operations 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.
Shortening product life cycle
– it is one of the major threat that Ip License is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ip License.
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 Ip License in the Technology & Operations sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Ip License 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ip License 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 Alnylam Pharmaceuticals: Building Value from the IP Estate .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ip License in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Ip License 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 Ip License with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Ip License
– 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 Ip License.
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. Ip License 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.
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.
Weighted SWOT Analysis of Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Alnylam Pharmaceuticals: Building Value from the IP Estate 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 Ip License needs to make to build a sustainable competitive advantage.
