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 - – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, digital marketing is dominated by two big players Facebook and Google,
increasing commodity prices, there is increasing trade war between United States & China, 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 -
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.
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.
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.
Diverse revenue streams
– Biogen Manufacturing is present in almost all the verticals within the industry. This has provided firm in Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Biogen Manufacturing in the sector have low bargaining power. Biogen, Inc.: rBeta Interferon Manufacturing Process Development has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Biogen Manufacturing to manage not only supply disruptions but also source products at highly competitive prices.
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.
High switching costs
– The high switching costs that Biogen Manufacturing 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.
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.
Innovation driven organization
– Biogen Manufacturing is one of the most innovative firm in sector. Manager in Biogen, Inc.: rBeta Interferon Manufacturing Process Development Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Biogen Manufacturing is one of the leading recruiters in the industry. Managers in the Biogen, Inc.: rBeta Interferon Manufacturing Process Development are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 -
No frontier risks strategy
– After analyzing the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development, 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.
Slow to strategic competitive environment developments
– As Biogen, Inc.: rBeta Interferon Manufacturing Process Development HBR case study mentions - Biogen Manufacturing 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.
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.
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.
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.
Need for greater diversity
– Biogen Manufacturing 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.
Aligning sales with marketing
– It come across in the case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development can leverage the sales team experience to cultivate customer relationships as Biogen Manufacturing is planning to shift buying processes online.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development, is just above the industry average. Biogen Manufacturing 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, Biogen Manufacturing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Biogen, Inc.: rBeta Interferon Manufacturing Process Development can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Biogen Manufacturing 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 Biogen Manufacturing to hire the very best people irrespective of their geographical location.
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.
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 Biogen Manufacturing in the consumer business. Now Biogen Manufacturing can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Buying journey improvements
– Biogen Manufacturing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Biogen, Inc.: rBeta Interferon Manufacturing Process Development 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 Biogen Manufacturing to increase its market reach. Biogen Manufacturing 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.
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.
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.
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. Biogen Manufacturing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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 -
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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Biogen Manufacturing 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 Biogen, Inc.: rBeta Interferon Manufacturing Process Development .
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.
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. Biogen Manufacturing 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.
High dependence on third party suppliers
– Biogen Manufacturing 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.
Regulatory challenges
– Biogen Manufacturing 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.
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.
Technology acceleration in Forth Industrial Revolution
– Biogen Manufacturing has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Biogen Manufacturing 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.
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 Biogen Manufacturing is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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.