MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work
In June 2014, MannKind Corporation announced that after years of development and billions of dollars in expenses, the FDA had finally approved its drug, Afrezza. MannKind would thus be the only company with an inhalable insulin on the market. As an alternative to injectable rapid-acting (or mealtime) insulin, Afrezza boasted a potential market of at least 4 million diabetic patients. Shortly thereafter, Sanofi, a company with vast experience in the diabetic space, became MannKind's marketing partner and helped launch Afrezza in February, 2015. Although the drug had a black box warning and required doctors to perform a lung test on patients, expectations were high, with some analysts predicting peak sales of up to $4 billion a year. However, those lofty hopes were quickly dashed when Afrezza generated lackluster first-year sales, driving Sanofi to terminate its short-lived contract with MannKind in January, 2016. MannKind's management attributed the launch's failure to a poor marketing approach, convinced that Sanofi, despite its strong global presence and experience, did not effectively address critical barriers to adoption. The company now planned to overhaul Afrezza's entire marketing strategy. This included rethinking: which patients and physicians to target, how to position the drug to engender interest and adoption, how to lower end consumer price, through which media to convey Afrezza's benefits, and how to streamline the process of performing the lung-test and getting the drug into the hands of patients. But would all these changes and initiatives, no matter how well executed, be enough to turn sales around? Would Afrezza ever realize the potential that Alfred Mann, the late founder and former CEO, saw in the novel treatment?
Swot Analysis of "MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work" written by Elie Ofek, Amanda Dai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Afrezza Mannkind facing as an external strategic factors. Some of the topics covered in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Afrezza Mannkind, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Afrezza Mannkind 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work can be done for the following purposes –
1. Strategic planning using facts provided in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work case study
2. Improving business portfolio management of Afrezza Mannkind
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Afrezza Mannkind
Strengths MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Afrezza Mannkind in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Afrezza Mannkind in the sector have low bargaining power. MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Afrezza Mannkind to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Afrezza Mannkind has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Afrezza Mannkind 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.
Organizational Resilience of Afrezza Mannkind
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Afrezza Mannkind does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Afrezza Mannkind 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.
Effective Research and Development (R&D)
– Afrezza Mannkind 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Afrezza Mannkind is one of the most innovative firm in sector. Manager in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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
– Afrezza Mannkind is one of the leading recruiters in the industry. Managers in the MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Afrezza Mannkind is present in almost all the verticals within the industry. This has provided firm in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Afrezza Mannkind digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Afrezza Mannkind 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.
Learning organization
- Afrezza Mannkind 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 Afrezza Mannkind is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Sales & Marketing industry
– MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work firm has clearly differentiated products in the market place. This has enabled Afrezza Mannkind to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Afrezza Mannkind to invest into research and development (R&D) and innovation.
Analytics focus
– Afrezza Mannkind 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 Elie Ofek, Amanda Dai 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.
Weaknesses MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work are -
High cash cycle compare to competitors
Afrezza Mannkind has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Afrezza Mannkind products
– To increase the profitability and margins on the products, Afrezza Mannkind needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Afrezza Mannkind 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Afrezza Mannkind is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Afrezza Mannkind 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work, in the dynamic environment Afrezza Mannkind has struggled to respond to the nimble upstart competition. Afrezza Mannkind has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Afrezza Mannkind 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 Afrezza Mannkind has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Afrezza Mannkind is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Afrezza Mannkind needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Afrezza Mannkind to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Afrezza Mannkind 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work, it seems that the employees of Afrezza Mannkind 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work | 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work are -
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 Afrezza Mannkind 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.
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. Afrezza Mannkind can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Afrezza Mannkind in the consumer business. Now Afrezza Mannkind can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Afrezza Mannkind is facing challenges because of the dominance of functional experts in the organization. MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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.
Creating value in data economy
– The success of analytics program of Afrezza Mannkind has opened avenues for new revenue streams for the organization in the industry. This can help Afrezza Mannkind to build a more holistic ecosystem as suggested in the MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work case study. Afrezza Mannkind can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Afrezza Mannkind 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.
Loyalty marketing
– Afrezza Mannkind 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Afrezza Mannkind can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Afrezza Mannkind can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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.
Using analytics as competitive advantage
– Afrezza Mannkind 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Afrezza Mannkind to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Afrezza Mannkind can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Afrezza Mannkind 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. Afrezza Mannkind 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Afrezza Mannkind can use these opportunities to build new business models that can help the communities that Afrezza Mannkind operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Threats MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work are -
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.
Increasing wage structure of Afrezza Mannkind
– 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 Afrezza Mannkind.
Technology acceleration in Forth Industrial Revolution
– Afrezza Mannkind has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Afrezza Mannkind needs to keep up with the evolution of technology in the Sales & Marketing 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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Afrezza Mannkind can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Afrezza Mannkind 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 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. Afrezza Mannkind needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Afrezza Mannkind is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Afrezza Mannkind business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work, Afrezza Mannkind may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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.
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 Afrezza Mannkind.
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. Afrezza Mannkind 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.
High dependence on third party suppliers
– Afrezza Mannkind 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.
Weighted SWOT Analysis of MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 MannKind Corporation: Take a Deep Breath, This Time Afrezza Will Work 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 Afrezza Mannkind needs to make to build a sustainable competitive advantage.