Genzyme: Engineering the Market for Orphan Drugs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Genzyme: Engineering the Market for Orphan Drugs
Genzyme has made money with external technology in orphan drug markets generally considered to be too small to be attractive to other drug companies. Now competition is entering these same markets, placing Genzyme's business model under new pressures.
Swot Analysis of "Genzyme: Engineering the Market for Orphan Drugs" written by Henry W. Chesbrough, Clarissa Ceruti includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Orphan Genzyme facing as an external strategic factors. Some of the topics covered in Genzyme: Engineering the Market for Orphan Drugs case study are - Strategic Management Strategies, Innovation, Marketing, Supply chain, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Genzyme: Engineering the Market for Orphan Drugs casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, there is backlash against globalization, there is increasing trade war between United States & China, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs,
increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Genzyme: Engineering the Market for Orphan Drugs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genzyme: Engineering the Market for Orphan Drugs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Orphan Genzyme, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Orphan Genzyme operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Genzyme: Engineering the Market for Orphan Drugs can be done for the following purposes –
1. Strategic planning using facts provided in Genzyme: Engineering the Market for Orphan Drugs case study
2. Improving business portfolio management of Orphan Genzyme
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 Orphan Genzyme
Strengths Genzyme: Engineering the Market for Orphan Drugs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Orphan Genzyme in Genzyme: Engineering the Market for Orphan Drugs Harvard Business Review case study are -
Ability to recruit top talent
– Orphan Genzyme is one of the leading recruiters in the industry. Managers in the Genzyme: Engineering the Market for Orphan Drugs 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)
– Orphan Genzyme has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Genzyme: Engineering the Market for Orphan Drugs - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Orphan Genzyme 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.
Diverse revenue streams
– Orphan Genzyme is present in almost all the verticals within the industry. This has provided firm in Genzyme: Engineering the Market for Orphan Drugs 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.
Training and development
– Orphan Genzyme has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Genzyme: Engineering the Market for Orphan Drugs 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.
Low bargaining power of suppliers
– Suppliers of Orphan Genzyme in the sector have low bargaining power. Genzyme: Engineering the Market for Orphan Drugs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Orphan Genzyme to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Orphan Genzyme is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Orphan Genzyme is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Genzyme: Engineering the Market for Orphan Drugs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Orphan Genzyme in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Orphan Genzyme digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Orphan Genzyme 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.
Analytics focus
– Orphan Genzyme 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 Henry W. Chesbrough, Clarissa Ceruti 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.
Organizational Resilience of Orphan Genzyme
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Orphan Genzyme does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Orphan Genzyme has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Orphan Genzyme to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Genzyme: Engineering the Market for Orphan Drugs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genzyme: Engineering the Market for Orphan Drugs are -
High operating costs
– Compare to the competitors, firm in the HBR case study Genzyme: Engineering the Market for Orphan Drugs 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 Orphan Genzyme 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Genzyme: Engineering the Market for Orphan Drugs 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 Genzyme: Engineering the Market for Orphan Drugs can leverage the sales team experience to cultivate customer relationships as Orphan Genzyme is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Orphan Genzyme, firm in the HBR case study Genzyme: Engineering the Market for Orphan Drugs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Orphan Genzyme products
– To increase the profitability and margins on the products, Orphan Genzyme needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry W. Chesbrough, Clarissa Ceruti suggests that, Orphan Genzyme 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.
Interest costs
– Compare to the competition, Orphan Genzyme 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.
Capital Spending Reduction
– Even during the low interest decade, Orphan Genzyme 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 strategic competitive environment developments
– As Genzyme: Engineering the Market for Orphan Drugs HBR case study mentions - Orphan Genzyme 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Orphan Genzyme is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Genzyme: Engineering the Market for Orphan Drugs 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 Genzyme: Engineering the Market for Orphan Drugs, in the dynamic environment Orphan Genzyme has struggled to respond to the nimble upstart competition. Orphan Genzyme has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Genzyme: Engineering the Market for Orphan Drugs, it seems that the employees of Orphan Genzyme 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.
Opportunities Genzyme: Engineering the Market for Orphan Drugs | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Genzyme: Engineering the Market for Orphan Drugs are -
Developing new processes and practices
– Orphan Genzyme 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.
Leveraging digital technologies
– Orphan Genzyme 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Orphan Genzyme is facing challenges because of the dominance of functional experts in the organization. Genzyme: Engineering the Market for Orphan Drugs 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Orphan Genzyme can use these opportunities to build new business models that can help the communities that Orphan Genzyme operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Orphan Genzyme 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, Genzyme: Engineering the Market for Orphan Drugs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Orphan Genzyme in the consumer business. Now Orphan Genzyme can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Orphan Genzyme can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Genzyme: Engineering the Market for Orphan Drugs 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.
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 Orphan Genzyme 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.
Manufacturing automation
– Orphan Genzyme can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Orphan Genzyme 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Orphan Genzyme 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 Orphan Genzyme to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Orphan Genzyme to increase its market reach. Orphan Genzyme 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.
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. Orphan Genzyme can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Genzyme: Engineering the Market for Orphan Drugs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genzyme: Engineering the Market for Orphan Drugs are -
Shortening product life cycle
– it is one of the major threat that Orphan Genzyme is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Orphan Genzyme 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Orphan Genzyme can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Orphan Genzyme demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Orphan Genzyme has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Orphan Genzyme 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.
Stagnating economy with rate increase
– Orphan Genzyme 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.
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 Orphan Genzyme.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Orphan Genzyme can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Genzyme: Engineering the Market for Orphan Drugs .
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 Orphan Genzyme with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Orphan Genzyme 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.
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. Orphan Genzyme 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.
Weighted SWOT Analysis of Genzyme: Engineering the Market for Orphan Drugs Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Genzyme: Engineering the Market for Orphan Drugs needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Genzyme: Engineering the Market for Orphan Drugs is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Genzyme: Engineering the Market for Orphan Drugs is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Genzyme: Engineering the Market for Orphan Drugs 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 Orphan Genzyme needs to make to build a sustainable competitive advantage.