Organizing for Innovation at Glenmark (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Organizing for Innovation at Glenmark (B)
The case traces the journey of an Indian pharmaceutical firm, Glenmark Pharmaceuticals, which had traditionally focused on generic drugs, into the area of discovery research. After India entered the global product patent system with the signing of the WTO TRIPs agreement in 1994, a number of Indian companies sought to move into discovery research. Glenmark invested heavily in developing its capabilities to undertake high-risk pharmaceutical research, and within three years, developed several promising molecules. The company signed out-licensing agreements for the molecules with international companies two agreements with U.S.-based Eli Lilly and Company and one each with U.S.-based Forest Laboratories and Germany-based Merck KGaA. The case takes students back to 2008, one of the most critical periods in the company's evolution. Three of Glenmark's four drug development projects have failed and the fourth is showing signs of failure. The company's stock price has plummeted and the management is under pressure from financial analysts to drop discovery research and focus on what they had always done best generics. The case puts participants in the chair of Glenmark's CEO Glenn Saldanha, who must, amid the building pressure and resource constraints on the company, develop a future plan of action for its R&D. To be or not to be the innovation company? That is the question before Saldanha, and the class.
Swot Analysis of "Organizing for Innovation at Glenmark (B)" written by Nita Sachan, Charles Dhanaraj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Glenmark Glenmark's facing as an external strategic factors. Some of the topics covered in Organizing for Innovation at Glenmark (B) case study are - Strategic Management Strategies, Innovation, Joint ventures, Leadership, Risk management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Organizing for Innovation at Glenmark (B) casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, there is backlash against globalization, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Organizing for Innovation at Glenmark (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizing for Innovation at Glenmark (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Glenmark Glenmark's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Glenmark Glenmark'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 Organizing for Innovation at Glenmark (B) can be done for the following purposes –
1. Strategic planning using facts provided in Organizing for Innovation at Glenmark (B) case study
2. Improving business portfolio management of Glenmark Glenmark's
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 Glenmark Glenmark's
Strengths Organizing for Innovation at Glenmark (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Glenmark Glenmark's in Organizing for Innovation at Glenmark (B) Harvard Business Review case study are -
Successful track record of launching new products
– Glenmark Glenmark's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Glenmark Glenmark's 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.
Ability to recruit top talent
– Glenmark Glenmark's is one of the leading recruiters in the industry. Managers in the Organizing for Innovation at Glenmark (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Innovation & Entrepreneurship field
– Glenmark Glenmark'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 Glenmark Glenmark's 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 Glenmark Glenmark'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.
Organizational Resilience of Glenmark Glenmark's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Glenmark Glenmark's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Glenmark Glenmark'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 Nita Sachan, Charles Dhanaraj 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.
Diverse revenue streams
– Glenmark Glenmark's is present in almost all the verticals within the industry. This has provided firm in Organizing for Innovation at Glenmark (B) 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.
Strong track record of project management
– Glenmark Glenmark'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.
Learning organization
- Glenmark Glenmark'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 Glenmark Glenmark's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Organizing for Innovation at Glenmark (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Organizing for Innovation at Glenmark (B) firm has clearly differentiated products in the market place. This has enabled Glenmark Glenmark's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Glenmark Glenmark's to invest into research and development (R&D) and innovation.
Innovation driven organization
– Glenmark Glenmark's is one of the most innovative firm in sector. Manager in Organizing for Innovation at Glenmark (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Glenmark Glenmark's 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.
Weaknesses Organizing for Innovation at Glenmark (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizing for Innovation at Glenmark (B) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Organizing for Innovation at Glenmark (B), is just above the industry average. Glenmark Glenmark'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.
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 Glenmark Glenmark's supply chain. Even after few cautionary changes mentioned in the HBR case study - Organizing for Innovation at Glenmark (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Glenmark Glenmark's vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) can leverage the sales team experience to cultivate customer relationships as Glenmark Glenmark's is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Glenmark Glenmark's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) 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 Glenmark Glenmark's has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Glenmark Glenmark's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Organizing for Innovation at Glenmark (B), in the dynamic environment Glenmark Glenmark's has struggled to respond to the nimble upstart competition. Glenmark Glenmark's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Glenmark Glenmark's products
– To increase the profitability and margins on the products, Glenmark Glenmark's needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Organizing for Innovation at Glenmark (B), it seems that the employees of Glenmark Glenmark's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Glenmark Glenmark'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 - Organizing for Innovation at Glenmark (B) should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Glenmark Glenmark's is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Glenmark Glenmark's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Glenmark Glenmark's to focus more on services rather than just following the product oriented approach.
Opportunities Organizing for Innovation at Glenmark (B) | 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 Organizing for Innovation at Glenmark (B) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Glenmark Glenmark'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.
Learning at scale
– Online learning technologies has now opened space for Glenmark Glenmark's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Glenmark Glenmark's 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, Organizing for Innovation at Glenmark (B), 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 Glenmark Glenmark'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.
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. Glenmark Glenmark'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. Glenmark Glenmark'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.
Loyalty marketing
– Glenmark Glenmark's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Glenmark Glenmark's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Glenmark Glenmark's is facing challenges because of the dominance of functional experts in the organization. Organizing for Innovation at Glenmark (B) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Glenmark Glenmark's can use these opportunities to build new business models that can help the communities that Glenmark Glenmark's operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Glenmark Glenmark's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Glenmark Glenmark'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 Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Manufacturing automation
– Glenmark Glenmark's 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.
Buying journey improvements
– Glenmark Glenmark's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Organizing for Innovation at Glenmark (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Organizing for Innovation at Glenmark (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizing for Innovation at Glenmark (B) are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Glenmark Glenmark's in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Glenmark Glenmark's needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Glenmark Glenmark's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Technology acceleration in Forth Industrial Revolution
– Glenmark Glenmark's has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Glenmark Glenmark's needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
Increasing wage structure of Glenmark Glenmark's
– 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 Glenmark Glenmark's.
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 Glenmark Glenmark's.
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 Glenmark Glenmark's 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, Glenmark Glenmark'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 Organizing for Innovation at Glenmark (B) .
Environmental challenges
– Glenmark Glenmark'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. Glenmark Glenmark's can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Stagnating economy with rate increase
– Glenmark Glenmark'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.
High dependence on third party suppliers
– Glenmark Glenmark's 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.
Weighted SWOT Analysis of Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) 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 Organizing for Innovation at Glenmark (B) 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 Glenmark Glenmark's needs to make to build a sustainable competitive advantage.
