Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster
In December 2007, the Economics & International Affairs director of the competitiveness cluster, Lyonbiopole, was responsible for the international development of the cluster. Lyonbiopole was one of seven biotechnology clusters in France. Although Lyonbiopole performed very well at the national level, its visibility as an international cluster in the biotechnology field was uncertain. Yet, for its member firms to thrive in the globalized world of biotechnology clusters, establishing international connections for the cluster was crucial. That is why the management team of Lyonbiopole developed an internationalization program through alliances with foreign clusters (i.e. interclusteral alliances). By improving its international visibility and reputation through alliances with world-class biotechnology clusters, Lyonbiopole hoped to create new technological partnerships, increase investment, and create other kinds of opportunities for member firms. After having successfully established alliance partnerships in Europe, Lyonbiopole was preparing for the second stage in its internationalization process. The case highlights the questions - in the context of industrial clusters - whether or not a smaller organization can approach an industry leader to create a mutually beneficial alliance, and how it might accomplish this.
Swot Analysis of "Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster" written by Anthony Goerzen, Ana Colovic includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lyonbiopole Clusters facing as an external strategic factors. Some of the topics covered in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster case study are - Strategic Management Strategies, Globalization, Joint ventures and Global Business.
Some of the macro environment factors that can be used to understand the Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lyonbiopole Clusters, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lyonbiopole Clusters 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster can be done for the following purposes –
1. Strategic planning using facts provided in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster case study
2. Improving business portfolio management of Lyonbiopole Clusters
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lyonbiopole Clusters
Strengths Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lyonbiopole Clusters in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster Harvard Business Review case study are -
Highly skilled collaborators
– Lyonbiopole Clusters 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Global Business field
– Lyonbiopole Clusters 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 Lyonbiopole Clusters in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Lyonbiopole Clusters has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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.
Learning organization
- Lyonbiopole Clusters 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 Lyonbiopole Clusters is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Lyonbiopole Clusters is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Lyonbiopole Clusters has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lyonbiopole Clusters to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Lyonbiopole Clusters digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lyonbiopole Clusters 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.
Operational resilience
– The operational resilience strategy in the Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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.
Sustainable margins compare to other players in Global Business industry
– Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster firm has clearly differentiated products in the market place. This has enabled Lyonbiopole Clusters to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Lyonbiopole Clusters to invest into research and development (R&D) and innovation.
Analytics focus
– Lyonbiopole Clusters 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 Anthony Goerzen, Ana Colovic 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 Lyonbiopole Clusters 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.
Low bargaining power of suppliers
– Suppliers of Lyonbiopole Clusters in the sector have low bargaining power. Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lyonbiopole Clusters to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster are -
Slow to strategic competitive environment developments
– As Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster HBR case study mentions - Lyonbiopole Clusters 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.
No frontier risks strategy
– After analyzing the HBR case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Aligning sales with marketing
– It come across in the case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster can leverage the sales team experience to cultivate customer relationships as Lyonbiopole Clusters is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster, is just above the industry average. Lyonbiopole Clusters 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, Lyonbiopole Clusters is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Anthony Goerzen, Ana Colovic suggests that, Lyonbiopole Clusters 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.
Lack of clear differentiation of Lyonbiopole Clusters products
– To increase the profitability and margins on the products, Lyonbiopole Clusters needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster, it seems that the employees of Lyonbiopole Clusters 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.
High cash cycle compare to competitors
Lyonbiopole Clusters 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.
Interest costs
– Compare to the competition, Lyonbiopole Clusters has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Capital Spending Reduction
– Even during the low interest decade, Lyonbiopole Clusters 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster | 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster are -
Loyalty marketing
– Lyonbiopole Clusters 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.
Better consumer reach
– The expansion of the 5G network will help Lyonbiopole Clusters to increase its market reach. Lyonbiopole Clusters 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.
Creating value in data economy
– The success of analytics program of Lyonbiopole Clusters has opened avenues for new revenue streams for the organization in the industry. This can help Lyonbiopole Clusters to build a more holistic ecosystem as suggested in the Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster case study. Lyonbiopole Clusters can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Lyonbiopole Clusters can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lyonbiopole Clusters can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lyonbiopole Clusters 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 Lyonbiopole Clusters to hire the very best people irrespective of their geographical location.
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 Lyonbiopole Clusters in the consumer business. Now Lyonbiopole Clusters can target international markets with far fewer capital restrictions requirements than the existing system.
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 Lyonbiopole Clusters 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lyonbiopole Clusters in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Lyonbiopole Clusters 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.
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. Lyonbiopole Clusters can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Lyonbiopole Clusters can develop new processes and procedures in Global Business 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.
Building a culture of innovation
– managers at Lyonbiopole Clusters 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 Global Business segment.
Threats Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster are -
Technology acceleration in Forth Industrial Revolution
– Lyonbiopole Clusters has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Lyonbiopole Clusters needs to keep up with the evolution of technology in the Global Business 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 Lyonbiopole Clusters in the Global Business sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lyonbiopole Clusters with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Lyonbiopole Clusters
– 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 Lyonbiopole Clusters.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lyonbiopole Clusters can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Lyonbiopole Clusters 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.
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. Lyonbiopole Clusters needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lyonbiopole Clusters 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster .
Environmental challenges
– Lyonbiopole Clusters 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. Lyonbiopole Clusters can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Lyonbiopole Clusters demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster, Lyonbiopole Clusters may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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 Lyonbiopole Clusters.
Weighted SWOT Analysis of Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole: The Challenge of Becoming a World-class Biotechnology Cluster 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 Lyonbiopole Clusters needs to make to build a sustainable competitive advantage.