Novo Nordisk A/S: Designing for Diabetics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Novo Nordisk A/S: Designing for Diabetics
Novo Nordisk, a Danish company, is the largest supplier of insulin in the world. Using both in-house and outside design services, it has integrated medical research, user-information, and new technologies in team-based projects that have resulted in user-friendly insulin delivery systems, such as insulin pens. These pens have been very successful in Europe and have met varying success elsewhere. The company needs to determine whether its products represent "global design." If not, then how could they? Should they? This case focuses on the use of design in positioning and marketing in the United States an innovative, prefilled, disposable, easy-to-use, pen-like syringe to replace the "drugstore" diabetics conventionally carry. Students are asked to develop a marketing strategy and launch plan to suit local conditions.
Swot Analysis of "Novo Nordisk A/S: Designing for Diabetics" written by Karen J. Freeze includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Insulin Diabetics facing as an external strategic factors. Some of the topics covered in Novo Nordisk A/S: Designing for Diabetics case study are - Strategic Management Strategies, Manufacturing, Marketing, Product development, Sustainability and Technology & Operations.
Some of the macro environment factors that can be used to understand the Novo Nordisk A/S: Designing for Diabetics casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing commodity prices,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Novo Nordisk A/S: Designing for Diabetics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Novo Nordisk A/S: Designing for Diabetics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Insulin Diabetics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Insulin Diabetics 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 Novo Nordisk A/S: Designing for Diabetics can be done for the following purposes –
1. Strategic planning using facts provided in Novo Nordisk A/S: Designing for Diabetics case study
2. Improving business portfolio management of Insulin Diabetics
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 Insulin Diabetics
Strengths Novo Nordisk A/S: Designing for Diabetics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Insulin Diabetics in Novo Nordisk A/S: Designing for Diabetics Harvard Business Review case study are -
Training and development
– Insulin Diabetics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Novo Nordisk A/S: Designing for Diabetics 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.
Organizational Resilience of Insulin Diabetics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Insulin Diabetics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Insulin Diabetics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Insulin Diabetics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Insulin Diabetics 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.
Operational resilience
– The operational resilience strategy in the Novo Nordisk A/S: Designing for Diabetics 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.
Strong track record of project management
– Insulin Diabetics 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
– Insulin Diabetics 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 Karen J. Freeze 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.
High brand equity
– Insulin Diabetics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Insulin Diabetics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Insulin Diabetics 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 Novo Nordisk A/S: Designing for Diabetics HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Insulin Diabetics is one of the leading recruiters in the industry. Managers in the Novo Nordisk A/S: Designing for Diabetics are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Technology & Operations industry
– Novo Nordisk A/S: Designing for Diabetics firm has clearly differentiated products in the market place. This has enabled Insulin Diabetics to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Insulin Diabetics to invest into research and development (R&D) and innovation.
Learning organization
- Insulin Diabetics 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 Insulin Diabetics is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Novo Nordisk A/S: Designing for Diabetics Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Novo Nordisk A/S: Designing for Diabetics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Novo Nordisk A/S: Designing for Diabetics are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Novo Nordisk A/S: Designing for Diabetics 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 Insulin Diabetics has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Insulin Diabetics needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– Insulin Diabetics 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.
No frontier risks strategy
– After analyzing the HBR case study Novo Nordisk A/S: Designing for Diabetics, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Novo Nordisk A/S: Designing for Diabetics, in the dynamic environment Insulin Diabetics has struggled to respond to the nimble upstart competition. Insulin Diabetics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Insulin Diabetics products
– To increase the profitability and margins on the products, Insulin Diabetics needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Novo Nordisk A/S: Designing for Diabetics HBR case study mentions - Insulin Diabetics 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Novo Nordisk A/S: Designing for Diabetics, it seems that the employees of Insulin Diabetics 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.
Aligning sales with marketing
– It come across in the case study Novo Nordisk A/S: Designing for Diabetics 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 Novo Nordisk A/S: Designing for Diabetics can leverage the sales team experience to cultivate customer relationships as Insulin Diabetics is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Novo Nordisk A/S: Designing for Diabetics 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 Insulin Diabetics 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Insulin Diabetics 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.
Opportunities Novo Nordisk A/S: Designing for Diabetics | 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 Novo Nordisk A/S: Designing for Diabetics are -
Learning at scale
– Online learning technologies has now opened space for Insulin Diabetics 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.
Building a culture of innovation
– managers at Insulin Diabetics 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.
Manufacturing automation
– Insulin Diabetics 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Insulin Diabetics 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 Insulin Diabetics 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. Insulin Diabetics 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. Insulin Diabetics 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.
Creating value in data economy
– The success of analytics program of Insulin Diabetics has opened avenues for new revenue streams for the organization in the industry. This can help Insulin Diabetics to build a more holistic ecosystem as suggested in the Novo Nordisk A/S: Designing for Diabetics case study. Insulin Diabetics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Insulin Diabetics 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.
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 Insulin Diabetics 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.
Using analytics as competitive advantage
– Insulin Diabetics 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 Novo Nordisk A/S: Designing for Diabetics - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Insulin Diabetics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Insulin Diabetics 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.
Developing new processes and practices
– Insulin Diabetics 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.
Buying journey improvements
– Insulin Diabetics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Novo Nordisk A/S: Designing for Diabetics 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.
Better consumer reach
– The expansion of the 5G network will help Insulin Diabetics to increase its market reach. Insulin Diabetics 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.
Threats Novo Nordisk A/S: Designing for Diabetics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Novo Nordisk A/S: Designing for Diabetics are -
Stagnating economy with rate increase
– Insulin Diabetics 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.
High dependence on third party suppliers
– Insulin Diabetics 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.
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 Insulin Diabetics.
Regulatory challenges
– Insulin Diabetics 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.
Technology acceleration in Forth Industrial Revolution
– Insulin Diabetics has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Insulin Diabetics 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.
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 Insulin Diabetics in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Insulin Diabetics 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Insulin Diabetics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Shortening product life cycle
– it is one of the major threat that Insulin Diabetics is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Insulin Diabetics 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.
Environmental challenges
– Insulin Diabetics 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. Insulin Diabetics can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Insulin Diabetics 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 Novo Nordisk A/S: Designing for Diabetics .
Weighted SWOT Analysis of Novo Nordisk A/S: Designing for Diabetics 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 Novo Nordisk A/S: Designing for Diabetics 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 Novo Nordisk A/S: Designing for Diabetics 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 Novo Nordisk A/S: Designing for Diabetics 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 Novo Nordisk A/S: Designing for Diabetics 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 Insulin Diabetics needs to make to build a sustainable competitive advantage.
