Phase Two: The Pharmaceutical Industry Responds to AIDS SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Phase Two: The Pharmaceutical Industry Responds to AIDS
Describes how major pharmaceutical firms changed their strategy and pricing policies in the years 2000 to 2002 to respond to the growing AIDS epidemic in Africa.
Authors :: Nicholas Bartlett, Debora L. Spar
Topics :: Global Business
Tags :: Intellectual property, International business, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Phase Two: The Pharmaceutical Industry Responds to AIDS" written by Nicholas Bartlett, Debora L. Spar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aids Pharmaceutical facing as an external strategic factors. Some of the topics covered in Phase Two: The Pharmaceutical Industry Responds to AIDS case study are - Strategic Management Strategies, Intellectual property, International business, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Phase Two: The Pharmaceutical Industry Responds to AIDS casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing energy prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs,
increasing household debt because of falling income levels, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Phase Two: The Pharmaceutical Industry Responds to AIDS
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Phase Two: The Pharmaceutical Industry Responds to AIDS case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aids Pharmaceutical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aids Pharmaceutical 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 Phase Two: The Pharmaceutical Industry Responds to AIDS can be done for the following purposes –
1. Strategic planning using facts provided in Phase Two: The Pharmaceutical Industry Responds to AIDS case study
2. Improving business portfolio management of Aids Pharmaceutical
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 Aids Pharmaceutical
Strengths Phase Two: The Pharmaceutical Industry Responds to AIDS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aids Pharmaceutical in Phase Two: The Pharmaceutical Industry Responds to AIDS Harvard Business Review case study are -
Training and development
– Aids Pharmaceutical has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Phase Two: The Pharmaceutical Industry Responds to AIDS 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.
Successful track record of launching new products
– Aids Pharmaceutical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aids Pharmaceutical 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.
Superior customer experience
– The customer experience strategy of Aids Pharmaceutical in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Aids Pharmaceutical 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.
High brand equity
– Aids Pharmaceutical has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Aids Pharmaceutical to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Aids Pharmaceutical 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 Aids Pharmaceutical is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Phase Two: The Pharmaceutical Industry Responds to AIDS Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– Phase Two: The Pharmaceutical Industry Responds to AIDS firm has clearly differentiated products in the market place. This has enabled Aids Pharmaceutical to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Aids Pharmaceutical to invest into research and development (R&D) and innovation.
Analytics focus
– Aids Pharmaceutical 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 Nicholas Bartlett, Debora L. Spar 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.
Ability to lead change in Global Business field
– Aids Pharmaceutical 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 Aids Pharmaceutical in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Aids Pharmaceutical 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 Phase Two: The Pharmaceutical Industry Responds to AIDS - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Aids Pharmaceutical in the sector have low bargaining power. Phase Two: The Pharmaceutical Industry Responds to AIDS has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aids Pharmaceutical to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Phase Two: The Pharmaceutical Industry Responds to AIDS are -
Aligning sales with marketing
– It come across in the case study Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS can leverage the sales team experience to cultivate customer relationships as Aids Pharmaceutical is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Aids Pharmaceutical is dominated by functional specialists. It is not different from other players in the Global Business segment. Aids Pharmaceutical needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aids Pharmaceutical to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Aids Pharmaceutical 's lucrative customers.
Slow to strategic competitive environment developments
– As Phase Two: The Pharmaceutical Industry Responds to AIDS HBR case study mentions - Aids Pharmaceutical 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 bargaining power of channel partners
– Because of the regulatory requirements, Nicholas Bartlett, Debora L. Spar suggests that, Aids Pharmaceutical 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.
Products dominated business model
– Even though Aids Pharmaceutical 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 - Phase Two: The Pharmaceutical Industry Responds to AIDS should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Aids Pharmaceutical has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Aids Pharmaceutical 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aids Pharmaceutical is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Phase Two: The Pharmaceutical Industry Responds to AIDS can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Phase Two: The Pharmaceutical Industry Responds to AIDS, is just above the industry average. Aids Pharmaceutical 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 cash cycle compare to competitors
Aids Pharmaceutical 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.
Opportunities Phase Two: The Pharmaceutical Industry Responds to AIDS | 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 Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Aids Pharmaceutical 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.
Buying journey improvements
– Aids Pharmaceutical can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Phase Two: The Pharmaceutical Industry Responds to AIDS 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aids Pharmaceutical 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.
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. Aids Pharmaceutical can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Aids Pharmaceutical 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.
Leveraging digital technologies
– Aids Pharmaceutical 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.
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 Aids Pharmaceutical in the consumer business. Now Aids Pharmaceutical can target international markets with far fewer capital restrictions requirements than the existing system.
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. Aids Pharmaceutical can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Aids Pharmaceutical 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.
Using analytics as competitive advantage
– Aids Pharmaceutical 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 Phase Two: The Pharmaceutical Industry Responds to AIDS - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aids Pharmaceutical to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Aids Pharmaceutical is facing challenges because of the dominance of functional experts in the organization. Phase Two: The Pharmaceutical Industry Responds to AIDS 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.
Building a culture of innovation
– managers at Aids Pharmaceutical 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Aids Pharmaceutical 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, Phase Two: The Pharmaceutical Industry Responds to AIDS, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Phase Two: The Pharmaceutical Industry Responds to AIDS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Phase Two: The Pharmaceutical Industry Responds to AIDS are -
High dependence on third party suppliers
– Aids Pharmaceutical 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 Aids Pharmaceutical 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 Aids Pharmaceutical
– 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 Aids Pharmaceutical.
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. Aids Pharmaceutical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Phase Two: The Pharmaceutical Industry Responds to AIDS, Aids Pharmaceutical 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 .
Environmental challenges
– Aids Pharmaceutical 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. Aids Pharmaceutical can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Aids Pharmaceutical.
Shortening product life cycle
– it is one of the major threat that Aids Pharmaceutical is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Aids Pharmaceutical 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. Aids Pharmaceutical 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aids Pharmaceutical 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 Phase Two: The Pharmaceutical Industry Responds to AIDS .
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. Aids Pharmaceutical needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Phase Two: The Pharmaceutical Industry Responds to AIDS 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 Aids Pharmaceutical needs to make to build a sustainable competitive advantage.
