Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff
The case deals with Gilead Sciences, a bio-pharmaceutical company with several FDA approved HIV/AIDS drugs. In 2006, the company launched the Gilead Access Program to enhance access to HIV/AIDS drugs in developing countries. In India, which also happened to be the largest producer of generic drugs, Gilead signed a voluntary licensing agreement for its drug, Viread, with 13 companies. By 2011, Mylan (previously known as Matrix Laboratories), one of the 13 Indian companies, had emerged as the leading supplier for Viread, with two-thirds of the global market. In order to accelerate its market reach, Gilead wanted to expand the scope of the agreement with four major Indian companies, including Mylan. Gregg Alton, Executive Vice President for Corporate and Medical Affairs, had to decide how he would convince his partners to come on board and how to execute the agreement.
Authors :: Nita Sachan, Anand Tatambothla, Revati Nehru, Charles Dhanaraj
Swot Analysis of "Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff" written by Nita Sachan, Anand Tatambothla, Revati Nehru, Charles Dhanaraj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gilead Viread facing as an external strategic factors. Some of the topics covered in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff case study are - Strategic Management Strategies, Health, Innovation, Joint ventures, Risk management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gilead Viread, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gilead Viread 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff can be done for the following purposes –
1. Strategic planning using facts provided in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff case study
2. Improving business portfolio management of Gilead Viread
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 Gilead Viread
Strengths Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gilead Viread in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Gilead Viread in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Gilead Viread is one of the leading recruiters in the industry. Managers in the Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Gilead Viread has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gilead Viread 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.
Highly skilled collaborators
– Gilead Viread 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Gilead Viread 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 Gilead Viread in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Gilead Viread is one of the most innovative firm in sector. Manager in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff firm has clearly differentiated products in the market place. This has enabled Gilead Viread to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Gilead Viread to invest into research and development (R&D) and innovation.
Strong track record of project management
– Gilead Viread is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Gilead Viread digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gilead Viread 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.
Analytics focus
– Gilead Viread 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, Anand Tatambothla, Revati Nehru, 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.
Training and development
– Gilead Viread has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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.
High brand equity
– Gilead Viread has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gilead Viread to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff are -
Slow to strategic competitive environment developments
– As Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff HBR case study mentions - Gilead Viread 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff, in the dynamic environment Gilead Viread has struggled to respond to the nimble upstart competition. Gilead Viread has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Gilead Viread 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Gilead Viread 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.
Low market penetration in new markets
– Outside its home market of Gilead Viread, firm in the HBR case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Gilead Viread 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.
Skills based hiring
– The stress on hiring functional specialists at Gilead Viread has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Gilead Viread 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Nita Sachan, Anand Tatambothla, Revati Nehru, Charles Dhanaraj suggests that, Gilead Viread 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff, is just above the industry average. Gilead Viread 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.
Opportunities Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff | 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Gilead Viread in the consumer business. Now Gilead Viread can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Gilead Viread 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.
Learning at scale
– Online learning technologies has now opened space for Gilead Viread 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.
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. Gilead Viread can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Gilead Viread 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gilead Viread is facing challenges because of the dominance of functional experts in the organization. Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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.
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 Gilead Viread 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gilead Viread can use these opportunities to build new business models that can help the communities that Gilead Viread operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gilead Viread 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.
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. Gilead Viread can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Gilead Viread to increase its market reach. Gilead Viread will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– Gilead Viread can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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.
Creating value in data economy
– The success of analytics program of Gilead Viread has opened avenues for new revenue streams for the organization in the industry. This can help Gilead Viread to build a more holistic ecosystem as suggested in the Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff case study. Gilead Viread can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff are -
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 Gilead Viread business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Gilead Viread 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gilead Viread 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff .
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. Gilead Viread 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 Gilead Viread 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 Gilead Viread is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Regulatory challenges
– Gilead Viread 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 Innovation & Entrepreneurship industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gilead Viread 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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gilead Viread can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gilead Viread with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Gilead Viread 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.
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. Gilead Viread needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Collaborative Commercialization at Gilead Sciences: Resolving the Innovation Vs. Access Tradeoff 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 Gilead Viread needs to make to build a sustainable competitive advantage.
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