Genzyme's Gaucher Initiative: Global Risk and Responsibility SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Genzyme's Gaucher Initiative: Global Risk and Responsibility
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.In Egypt, Genzyme's humanitarian commitment to treat all sufferers of the rare Gaucher disease worldwide first confronts its commercial imperative to recoup the huge investment required to bring the drug Cerezyme to market. Here Tomye Tierney must decide how to balance the demands of the sales organization that faces saturating developed markets, but major growth opportunities in developing economies. They believe that as long as the Gaucher Initiative-Genzyme's partnership with Project Hope-is providing free Cerezyme, they will be unable to convince the Egyptian government to authorize reimbursement, which can run from $200,000 to $300,000 per patient annually. CEO Henri Termeer believes Genzyme can hold firm to both the humanitarian commitment and its strong patient-focused commercial objectives. But it is Tierney who is on the front line and negotiates the delicate agreement between Genzyme sales, Project Hope, and Egyptian authorities.
Authors :: Christopher A. Bartlett, Andrew N. McLean
Swot Analysis of "Genzyme's Gaucher Initiative: Global Risk and Responsibility" written by Christopher A. Bartlett, Andrew N. McLean includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gaucher Genzyme's facing as an external strategic factors. Some of the topics covered in Genzyme's Gaucher Initiative: Global Risk and Responsibility case study are - Strategic Management Strategies, Emerging markets, Government, Marketing, Negotiations, Organizational culture, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Genzyme's Gaucher Initiative: Global Risk and Responsibility casestudy better are - – there is increasing trade war between United States & China, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, there is backlash against globalization,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Genzyme's Gaucher Initiative: Global Risk and Responsibility
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genzyme's Gaucher Initiative: Global Risk and Responsibility case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gaucher Genzyme's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gaucher Genzyme's 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility can be done for the following purposes –
1. Strategic planning using facts provided in Genzyme's Gaucher Initiative: Global Risk and Responsibility case study
2. Improving business portfolio management of Gaucher Genzyme's
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 Gaucher Genzyme's
Strengths Genzyme's Gaucher Initiative: Global Risk and Responsibility | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gaucher Genzyme's in Genzyme's Gaucher Initiative: Global Risk and Responsibility Harvard Business Review case study are -
Organizational Resilience of Gaucher Genzyme's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gaucher Genzyme's 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 Gaucher Genzyme's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gaucher Genzyme's 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.
High brand equity
– Gaucher Genzyme's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gaucher Genzyme's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Gaucher Genzyme's 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 Gaucher Genzyme's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Genzyme's Gaucher Initiative: Global Risk and Responsibility Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Gaucher Genzyme's 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 Christopher A. Bartlett, Andrew N. McLean 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.
Superior customer experience
– The customer experience strategy of Gaucher Genzyme's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Global Business field
– Gaucher Genzyme's 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 Gaucher Genzyme's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Gaucher Genzyme's in the sector have low bargaining power. Genzyme's Gaucher Initiative: Global Risk and Responsibility has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gaucher Genzyme's to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Genzyme's Gaucher Initiative: Global Risk and Responsibility 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.
High switching costs
– The high switching costs that Gaucher Genzyme's 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.
Highly skilled collaborators
– Gaucher Genzyme's 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Gaucher Genzyme's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Genzyme's Gaucher Initiative: Global Risk and Responsibility | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genzyme's Gaucher Initiative: Global Risk and Responsibility are -
High cash cycle compare to competitors
Gaucher Genzyme's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gaucher Genzyme's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Gaucher Genzyme's has relatively successful track record of launching new products.
Lack of clear differentiation of Gaucher Genzyme's products
– To increase the profitability and margins on the products, Gaucher Genzyme's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Gaucher Genzyme's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Genzyme's Gaucher Initiative: Global Risk and Responsibility, is just above the industry average. Gaucher Genzyme's 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 strategic competitive environment developments
– As Genzyme's Gaucher Initiative: Global Risk and Responsibility HBR case study mentions - Gaucher Genzyme's 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.
Need for greater diversity
– Gaucher Genzyme's 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.
Increasing silos among functional specialists
– The organizational structure of Gaucher Genzyme's is dominated by functional specialists. It is not different from other players in the Global Business segment. Gaucher Genzyme's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gaucher Genzyme's to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Gaucher Genzyme's 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 - Genzyme's Gaucher Initiative: Global Risk and Responsibility should strive to include more intangible value offerings along with its core products and services.
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 Gaucher Genzyme's supply chain. Even after few cautionary changes mentioned in the HBR case study - Genzyme's Gaucher Initiative: Global Risk and Responsibility, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gaucher Genzyme's vulnerable to further global disruptions in South East Asia.
Opportunities Genzyme's Gaucher Initiative: Global Risk and Responsibility | 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility are -
Buying journey improvements
– Gaucher Genzyme's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Gaucher Genzyme's 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.
Better consumer reach
– The expansion of the 5G network will help Gaucher Genzyme's to increase its market reach. Gaucher Genzyme's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gaucher Genzyme's can use these opportunities to build new business models that can help the communities that Gaucher Genzyme's operates in. Secondly it can use opportunities from government spending in Global Business sector.
Building a culture of innovation
– managers at Gaucher Genzyme's 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.
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 Gaucher Genzyme's in the consumer business. Now Gaucher Genzyme's can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gaucher Genzyme's is facing challenges because of the dominance of functional experts in the organization. Genzyme's Gaucher Initiative: Global Risk and Responsibility 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.
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. Gaucher Genzyme's 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. Gaucher Genzyme's 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.
Creating value in data economy
– The success of analytics program of Gaucher Genzyme's has opened avenues for new revenue streams for the organization in the industry. This can help Gaucher Genzyme's to build a more holistic ecosystem as suggested in the Genzyme's Gaucher Initiative: Global Risk and Responsibility case study. Gaucher Genzyme's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Gaucher Genzyme's 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.
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. Gaucher Genzyme's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Gaucher Genzyme's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gaucher Genzyme's 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genzyme's Gaucher Initiative: Global Risk and Responsibility are -
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. Gaucher Genzyme's 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.
Consumer confidence and its impact on Gaucher Genzyme's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gaucher Genzyme's 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility .
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.
Environmental challenges
– Gaucher Genzyme's 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. Gaucher Genzyme's can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Gaucher Genzyme's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Shortening product life cycle
– it is one of the major threat that Gaucher Genzyme's 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 Gaucher Genzyme's 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.
Regulatory challenges
– Gaucher Genzyme's 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.
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 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. Gaucher Genzyme's needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Gaucher Genzyme's business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gaucher Genzyme's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Genzyme's Gaucher Initiative: Global Risk and Responsibility 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 Gaucher Genzyme's needs to make to build a sustainable competitive advantage.
