Biogen, Inc.: rBeta Interferon Manufacturing Process Development SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Biogen, Inc.: rBeta Interferon Manufacturing Process Development
Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward.
Swot Analysis of "Biogen, Inc.: rBeta Interferon Manufacturing Process Development" written by Steven C. Wheelwright includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Biogen Manufacturing facing as an external strategic factors. Some of the topics covered in Biogen, Inc.: rBeta Interferon Manufacturing Process Development case study are - Strategic Management Strategies, Manufacturing, Product development, Project management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Biogen, Inc.: rBeta Interferon Manufacturing Process Development casestudy better are - – increasing commodity prices, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Biogen, Inc.: rBeta Interferon Manufacturing Process Development
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Biogen, Inc.: rBeta Interferon Manufacturing Process Development case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Biogen Manufacturing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Biogen Manufacturing 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development can be done for the following purposes –
1. Strategic planning using facts provided in Biogen, Inc.: rBeta Interferon Manufacturing Process Development case study
2. Improving business portfolio management of Biogen Manufacturing
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 Biogen Manufacturing
Strengths Biogen, Inc.: rBeta Interferon Manufacturing Process Development | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Biogen Manufacturing in Biogen, Inc.: rBeta Interferon Manufacturing Process Development Harvard Business Review case study are -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Biogen Manufacturing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Biogen Manufacturing 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.
Ability to lead change in Technology & Operations field
– Biogen Manufacturing 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 Biogen Manufacturing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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.
Effective Research and Development (R&D)
– Biogen Manufacturing 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development - 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 Biogen Manufacturing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Biogen Manufacturing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Biogen Manufacturing 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 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.
Cross disciplinary teams
– Horizontal connected teams at the Biogen Manufacturing 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.
Successful track record of launching new products
– Biogen Manufacturing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Biogen Manufacturing 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.
Learning organization
- Biogen Manufacturing 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 Biogen Manufacturing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Biogen, Inc.: rBeta Interferon Manufacturing Process Development Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Biogen Manufacturing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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.
Strong track record of project management
– Biogen Manufacturing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Biogen Manufacturing 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Biogen, Inc.: rBeta Interferon Manufacturing Process Development | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Biogen, Inc.: rBeta Interferon Manufacturing Process Development are -
High bargaining power of channel partners
– Because of the regulatory requirements, Steven C. Wheelwright suggests that, Biogen Manufacturing 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development, it seems that the employees of Biogen Manufacturing 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.
Increasing silos among functional specialists
– The organizational structure of Biogen Manufacturing is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Biogen Manufacturing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Biogen Manufacturing to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Biogen Manufacturing 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen Manufacturing 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Biogen Manufacturing has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Biogen Manufacturing even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, Biogen Manufacturing 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.
Low market penetration in new markets
– Outside its home market of Biogen Manufacturing, firm in the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Biogen Manufacturing products
– To increase the profitability and margins on the products, Biogen Manufacturing needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Biogen Manufacturing supply chain. Even after few cautionary changes mentioned in the HBR case study - Biogen, Inc.: rBeta Interferon Manufacturing Process Development, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Biogen Manufacturing vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Biogen Manufacturing has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Biogen, Inc.: rBeta Interferon Manufacturing Process Development should strive to include more intangible value offerings along with its core products and services.
Opportunities Biogen, Inc.: rBeta Interferon Manufacturing Process Development | 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Biogen Manufacturing can use these opportunities to build new business models that can help the communities that Biogen Manufacturing operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Using analytics as competitive advantage
– Biogen Manufacturing 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Biogen Manufacturing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Biogen Manufacturing is facing challenges because of the dominance of functional experts in the organization. Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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, Biogen Manufacturing 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, Biogen, Inc.: rBeta Interferon Manufacturing Process Development, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Biogen Manufacturing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Biogen Manufacturing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Biogen Manufacturing 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.
Building a culture of innovation
– managers at Biogen Manufacturing 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.
Leveraging digital technologies
– Biogen Manufacturing 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.
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 Biogen Manufacturing 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
– Biogen Manufacturing 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.
Loyalty marketing
– Biogen Manufacturing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Biogen Manufacturing 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.
Threats Biogen, Inc.: rBeta Interferon Manufacturing Process Development External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Biogen Manufacturing 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.
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. Biogen Manufacturing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Biogen Manufacturing business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Biogen Manufacturing 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.
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 Biogen Manufacturing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Biogen Manufacturing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Biogen Manufacturing needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Biogen Manufacturing 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. Biogen Manufacturing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Biogen Manufacturing
– 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 Biogen Manufacturing.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development, Biogen Manufacturing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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 Biogen Manufacturing.
Shortening product life cycle
– it is one of the major threat that Biogen Manufacturing is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen Manufacturing needs to make to build a sustainable competitive advantage.
