Pfizer: Global Protection of Intellectual Property SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pfizer: Global Protection of Intellectual Property
Top officials at Pfizer are assessing their strategy for improving protection of Pfizer's patents around the world. The outcome of the Uruguay Round of the GATT negotiations is uncertain, and it is not clear whether an acceptable intellectual property protection agreement will emerge. The case describes how Pfizer helped transform intellectual property from a lawyer's specialty to an international trade issue of concern around the world through close cooperation with the U.S. government, leadership in forming a tripartite coalition among U.S., Japanese, and European industry, and mobilization of the Pfizer organization. Shows how far a company may go to protect its intellectual property in a world where the concept of intellectual property is not universally recognized or accepted. May also be used to discuss the effectiveness and legitimacy of Pfizer's strategy, the conflicts between industrialized country and developing country perspectives on international trade and national sovereignty, and the question of appropriate norms of intellectual property protection.
Swot Analysis of "Pfizer: Global Protection of Intellectual Property" written by Lynn Sharp Paine, Michael A. Santoro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intellectual Pfizer facing as an external strategic factors. Some of the topics covered in Pfizer: Global Protection of Intellectual Property case study are - Strategic Management Strategies, Intellectual property, Joint ventures, Negotiations, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Pfizer: Global Protection of Intellectual Property casestudy better are - – there is increasing trade war between United States & China, increasing energy prices, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, increasing commodity prices, 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%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Pfizer: Global Protection of Intellectual Property
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pfizer: Global Protection of Intellectual Property case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intellectual Pfizer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intellectual Pfizer 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 Pfizer: Global Protection of Intellectual Property can be done for the following purposes –
1. Strategic planning using facts provided in Pfizer: Global Protection of Intellectual Property case study
2. Improving business portfolio management of Intellectual Pfizer
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 Intellectual Pfizer
Strengths Pfizer: Global Protection of Intellectual Property | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intellectual Pfizer in Pfizer: Global Protection of Intellectual Property Harvard Business Review case study are -
Successful track record of launching new products
– Intellectual Pfizer has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intellectual Pfizer 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.
Effective Research and Development (R&D)
– Intellectual Pfizer 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 Pfizer: Global Protection of Intellectual Property - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Pfizer: Global Protection of Intellectual Property 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.
Cross disciplinary teams
– Horizontal connected teams at the Intellectual Pfizer 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.
Sustainable margins compare to other players in Global Business industry
– Pfizer: Global Protection of Intellectual Property firm has clearly differentiated products in the market place. This has enabled Intellectual Pfizer to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Intellectual Pfizer to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Intellectual Pfizer in the sector have low bargaining power. Pfizer: Global Protection of Intellectual Property has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intellectual Pfizer to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Intellectual Pfizer 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 Lynn Sharp Paine, Michael A. Santoro can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Intellectual Pfizer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intellectual Pfizer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Intellectual Pfizer is present in almost all the verticals within the industry. This has provided firm in Pfizer: Global Protection of Intellectual Property 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.
Organizational Resilience of Intellectual Pfizer
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intellectual Pfizer does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Intellectual Pfizer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Intellectual Pfizer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intellectual Pfizer 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.
Weaknesses Pfizer: Global Protection of Intellectual Property | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pfizer: Global Protection of Intellectual Property are -
Low market penetration in new markets
– Outside its home market of Intellectual Pfizer, firm in the HBR case study Pfizer: Global Protection of Intellectual Property needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Intellectual Pfizer 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pfizer: Global Protection of Intellectual Property, is just above the industry average. Intellectual Pfizer 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.
Lack of clear differentiation of Intellectual Pfizer products
– To increase the profitability and margins on the products, Intellectual Pfizer needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Intellectual Pfizer 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 - Pfizer: Global Protection of Intellectual Property should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Intellectual Pfizer 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.
Slow decision making process
– As mentioned earlier in the report, Intellectual Pfizer 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. Intellectual Pfizer 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pfizer: Global Protection of Intellectual Property 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 Intellectual Pfizer has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Pfizer: Global Protection of Intellectual Property HBR case study mentions - Intellectual Pfizer 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.
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 Intellectual Pfizer supply chain. Even after few cautionary changes mentioned in the HBR case study - Pfizer: Global Protection of Intellectual Property, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Intellectual Pfizer vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Intellectual Pfizer 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 Pfizer: Global Protection of Intellectual Property | 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 Pfizer: Global Protection of Intellectual Property are -
Developing new processes and practices
– Intellectual Pfizer 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Intellectual Pfizer can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intellectual Pfizer can use these opportunities to build new business models that can help the communities that Intellectual Pfizer operates in. Secondly it can use opportunities from government spending in Global Business sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intellectual Pfizer is facing challenges because of the dominance of functional experts in the organization. Pfizer: Global Protection of Intellectual Property 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 Intellectual Pfizer has opened avenues for new revenue streams for the organization in the industry. This can help Intellectual Pfizer to build a more holistic ecosystem as suggested in the Pfizer: Global Protection of Intellectual Property case study. Intellectual Pfizer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Intellectual Pfizer 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 Pfizer: Global Protection of Intellectual Property - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intellectual Pfizer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intellectual Pfizer 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.
Building a culture of innovation
– managers at Intellectual Pfizer 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.
Better consumer reach
– The expansion of the 5G network will help Intellectual Pfizer to increase its market reach. Intellectual Pfizer 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.
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 Intellectual Pfizer in the consumer business. Now Intellectual Pfizer can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Intellectual Pfizer 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, Pfizer: Global Protection of Intellectual Property, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Intellectual Pfizer 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.
Buying journey improvements
– Intellectual Pfizer can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pfizer: Global Protection of Intellectual Property 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.
Threats Pfizer: Global Protection of Intellectual Property External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pfizer: Global Protection of Intellectual Property are -
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 Intellectual Pfizer.
Shortening product life cycle
– it is one of the major threat that Intellectual Pfizer is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Intellectual Pfizer needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Intellectual Pfizer has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Intellectual Pfizer 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.
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. Intellectual Pfizer 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.
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. Intellectual Pfizer can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Intellectual Pfizer 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 Pfizer: Global Protection of Intellectual Property .
Consumer confidence and its impact on Intellectual Pfizer 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.
Environmental challenges
– Intellectual Pfizer 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. Intellectual Pfizer can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Intellectual Pfizer in the Global Business sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Intellectual Pfizer 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intellectual Pfizer with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Intellectual Pfizer business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Pfizer: Global Protection of Intellectual Property 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 Pfizer: Global Protection of Intellectual Property 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 Pfizer: Global Protection of Intellectual Property 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 Pfizer: Global Protection of Intellectual Property 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 Pfizer: Global Protection of Intellectual Property 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 Intellectual Pfizer needs to make to build a sustainable competitive advantage.