Novo Nordisk (B): The Prandin/Novonorm Global Product Launch SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Novo Nordisk (B): The Prandin/Novonorm Global Product Launch
The FDA believed that Prandin was a very innovative drug that would provide the fast-growing number of Americans suffering from type II diabetes with a better and more convenient treatment for their health problems. For this reason, the FDA was willing to put Prandin application on the fast track which would allow Novo Nordisk to have the product registered (thus making it legal to sell) in a maximum of 6 months. The decision to schedule the initial worldwide launch of Prandin/Novonorm in the United States in an extremely short time frame was not easy at all.
Authors :: Joel Podolny, John Roberts, Aldo Kemper
Swot Analysis of "Novo Nordisk (B): The Prandin/Novonorm Global Product Launch" written by Joel Podolny, John Roberts, Aldo Kemper includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Prandin Novonorm facing as an external strategic factors. Some of the topics covered in Novo Nordisk (B): The Prandin/Novonorm Global Product Launch case study are - Strategic Management Strategies, International business and Global Business.
Some of the macro environment factors that can be used to understand the Novo Nordisk (B): The Prandin/Novonorm Global Product Launch casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, geopolitical disruptions, there is backlash against globalization,
increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Novo Nordisk (B): The Prandin/Novonorm Global Product Launch
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Novo Nordisk (B): The Prandin/Novonorm Global Product Launch case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Prandin Novonorm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Prandin Novonorm 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch can be done for the following purposes –
1. Strategic planning using facts provided in Novo Nordisk (B): The Prandin/Novonorm Global Product Launch case study
2. Improving business portfolio management of Prandin Novonorm
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 Prandin Novonorm
Strengths Novo Nordisk (B): The Prandin/Novonorm Global Product Launch | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Prandin Novonorm in Novo Nordisk (B): The Prandin/Novonorm Global Product Launch Harvard Business Review case study are -
Diverse revenue streams
– Prandin Novonorm is present in almost all the verticals within the industry. This has provided firm in Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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.
Highly skilled collaborators
– Prandin Novonorm 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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
– Prandin Novonorm 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 Prandin Novonorm in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Prandin Novonorm 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.
Cross disciplinary teams
– Horizontal connected teams at the Prandin Novonorm 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.
Ability to recruit top talent
– Prandin Novonorm is one of the leading recruiters in the industry. Managers in the Novo Nordisk (B): The Prandin/Novonorm Global Product Launch are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Prandin Novonorm
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Prandin Novonorm does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Prandin Novonorm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Prandin Novonorm 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.
Sustainable margins compare to other players in Global Business industry
– Novo Nordisk (B): The Prandin/Novonorm Global Product Launch firm has clearly differentiated products in the market place. This has enabled Prandin Novonorm to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Prandin Novonorm to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Prandin Novonorm 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Prandin Novonorm has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Prandin Novonorm 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.
Operational resilience
– The operational resilience strategy in the Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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.
Weaknesses Novo Nordisk (B): The Prandin/Novonorm Global Product Launch | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Novo Nordisk (B): The Prandin/Novonorm Global Product Launch are -
Products dominated business model
– Even though Prandin Novonorm 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 - Novo Nordisk (B): The Prandin/Novonorm Global Product Launch should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Novo Nordisk (B): The Prandin/Novonorm Global Product Launch HBR case study mentions - Prandin Novonorm 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.
Aligning sales with marketing
– It come across in the case study Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch can leverage the sales team experience to cultivate customer relationships as Prandin Novonorm is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Prandin Novonorm 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.
Capital Spending Reduction
– Even during the low interest decade, Prandin Novonorm 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch, is just above the industry average. Prandin Novonorm 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Prandin Novonorm 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Novo Nordisk (B): The Prandin/Novonorm Global Product Launch, in the dynamic environment Prandin Novonorm has struggled to respond to the nimble upstart competition. Prandin Novonorm has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Prandin Novonorm 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.
Lack of clear differentiation of Prandin Novonorm products
– To increase the profitability and margins on the products, Prandin Novonorm needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Prandin Novonorm 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.
Opportunities Novo Nordisk (B): The Prandin/Novonorm Global Product Launch | 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Prandin Novonorm 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, Novo Nordisk (B): The Prandin/Novonorm Global Product Launch, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Prandin Novonorm 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.
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 Prandin Novonorm in the consumer business. Now Prandin Novonorm can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Prandin Novonorm has opened avenues for new revenue streams for the organization in the industry. This can help Prandin Novonorm to build a more holistic ecosystem as suggested in the Novo Nordisk (B): The Prandin/Novonorm Global Product Launch case study. Prandin Novonorm can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Prandin Novonorm to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Prandin Novonorm 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.
Better consumer reach
– The expansion of the 5G network will help Prandin Novonorm to increase its market reach. Prandin Novonorm 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.
Buying journey improvements
– Prandin Novonorm can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Prandin Novonorm 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. Prandin Novonorm 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Prandin Novonorm 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 Prandin Novonorm to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Prandin Novonorm can use these opportunities to build new business models that can help the communities that Prandin Novonorm 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, Prandin Novonorm is facing challenges because of the dominance of functional experts in the organization. Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Prandin Novonorm can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Novo Nordisk (B): The Prandin/Novonorm Global Product Launch External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Novo Nordisk (B): The Prandin/Novonorm Global Product Launch are -
Increasing wage structure of Prandin Novonorm
– 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 Prandin Novonorm.
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 Prandin Novonorm business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Prandin Novonorm 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch .
Regulatory challenges
– Prandin Novonorm 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 Global Business industry regulations.
Consumer confidence and its impact on Prandin Novonorm 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Prandin Novonorm in the Global Business industry. The Global Business 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.
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. Prandin Novonorm 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.
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.
High dependence on third party suppliers
– Prandin Novonorm 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.
Environmental challenges
– Prandin Novonorm 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. Prandin Novonorm can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Prandin Novonorm can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Prandin Novonorm with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Prandin Novonorm needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Novo Nordisk (B): The Prandin/Novonorm Global Product Launch 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 Prandin Novonorm needs to make to build a sustainable competitive advantage.
