Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems
International healthcare and reimbursement systems underwent a radical transformation in the 2000s, resulting from growing financial pressures incited by economic depression and a steady rise in healthcare spending. This phenomenon was most pronounced in the United States, where the health-spending share of GDP rose from five percent in 1960 to 17.9 percent in 2011. In Organization for Economic Co-operation and Development (OECD) countries on average, healthcare spending as a percentage of GDP grew from four percent to 9.6 percent over the same period. Although specifics varied by country, the systemic evolution of international healthcare and reimbursement standards was characterized by two main trends-a shift toward value-based pricing; and more stringent reimbursement standards for new drug evaluations. With this in mind, each country developed its own methods and decision-making processes for reimbursing companies looking to penetrate its market with new innovations. The United Kingdom, Germany, and Japan exemplified this dynamic.
Swot Analysis of "Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems" written by Robert Chess, Jason Luther includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reimbursement Percent facing as an external strategic factors. Some of the topics covered in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems case study are - Strategic Management Strategies, Pricing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems casestudy better are - – increasing commodity prices, geopolitical disruptions, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, technology disruption, etc
Introduction to SWOT Analysis of Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reimbursement Percent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems can be done for the following purposes –
1. Strategic planning using facts provided in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems case study
2. Improving business portfolio management of Reimbursement Percent
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Reimbursement Percent
Strengths Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reimbursement Percent in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems Harvard Business Review case study are -
Learning organization
- Reimbursement Percent 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 Reimbursement Percent is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Reimbursement Percent has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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.
Organizational Resilience of Reimbursement Percent
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Reimbursement Percent does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Reimbursement Percent has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reimbursement Percent to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Reimbursement Percent 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Reimbursement Percent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reimbursement Percent 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.
Diverse revenue streams
– Reimbursement Percent is present in almost all the verticals within the industry. This has provided firm in Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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.
Analytics focus
– Reimbursement Percent 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 Robert Chess, Jason Luther 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.
Effective Research and Development (R&D)
– Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Reimbursement Percent is one of the leading recruiters in the industry. Managers in the Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Reimbursement Percent has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though Reimbursement Percent 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 - Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems can leverage the sales team experience to cultivate customer relationships as Reimbursement Percent is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Reimbursement Percent 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.
Slow to strategic competitive environment developments
– As Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems HBR case study mentions - Reimbursement Percent 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.
Capital Spending Reduction
– Even during the low interest decade, Reimbursement Percent 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.
Lack of clear differentiation of Reimbursement Percent products
– To increase the profitability and margins on the products, Reimbursement Percent needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Reimbursement Percent is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Reimbursement Percent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reimbursement Percent to focus more on services rather than just following the product oriented approach.
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 Reimbursement Percent supply chain. Even after few cautionary changes mentioned in the HBR case study - Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reimbursement Percent vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Reimbursement Percent 's lucrative customers.
Opportunities Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems | 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems are -
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 Reimbursement Percent in the consumer business. Now Reimbursement Percent can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Reimbursement Percent can use these opportunities to build new business models that can help the communities that Reimbursement Percent operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Creating value in data economy
– The success of analytics program of Reimbursement Percent has opened avenues for new revenue streams for the organization in the industry. This can help Reimbursement Percent to build a more holistic ecosystem as suggested in the Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems case study. Reimbursement Percent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Reimbursement Percent can develop new processes and procedures in Innovation & Entrepreneurship 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.
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. Reimbursement Percent can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reimbursement Percent 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, Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Reimbursement Percent to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reimbursement Percent in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Reimbursement Percent 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. Reimbursement Percent 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.
Manufacturing automation
– Reimbursement Percent can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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 Reimbursement Percent to increase its market reach. Reimbursement Percent 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Reimbursement Percent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Reimbursement Percent to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems are -
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. Reimbursement Percent needs to understand the core reasons impacting the Innovation & Entrepreneurship 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.
Stagnating economy with rate increase
– Reimbursement Percent 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems, Reimbursement Percent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Reimbursement Percent in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Increasing wage structure of Reimbursement Percent
– 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 Reimbursement Percent.
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 Reimbursement Percent 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, Reimbursement Percent 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems .
Consumer confidence and its impact on Reimbursement Percent 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.
Shortening product life cycle
– it is one of the major threat that Reimbursement Percent is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Reimbursement Percent.
High dependence on third party suppliers
– Reimbursement Percent 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
– Reimbursement Percent 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. Reimbursement Percent can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Weighted SWOT Analysis of Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Novartis' Gilenya: Navigating the Interplay Between Drug Innovation, Pricing, and Reimbursement in Different Countries' Health Care Systems 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 Reimbursement Percent needs to make to build a sustainable competitive advantage.
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