Immunovaccine (IMV): Preparing to Cross the "Valley of Death" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Immunovaccine (IMV): Preparing to Cross the "Valley of Death"
The case describes the challenges faced by Immunovaccine (IMV), a small biotechnology company founded in Halifax, Canada. The company has seen early success in the effectiveness of its technology in animal health and is looking for ways to exploit the potential of its technology more broadly, particularly in human health. The company's challenges are presented in the context of the evolving relationship between the pharmaceutical and biotechnology industries. The case describes the various issues the company faces around 2008, shortly after the new president and CEO has taken over. It then provides details on strategy formulation and execution under the new CEO.
Swot Analysis of "Immunovaccine (IMV): Preparing to Cross the "Valley of Death"" written by Ella Korets-Smith, Suhaib Riaz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Immunovaccine Imv facing as an external strategic factors. Some of the topics covered in Immunovaccine (IMV): Preparing to Cross the "Valley of Death" case study are - Strategic Management Strategies, Human resource management, Strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Immunovaccine (IMV): Preparing to Cross the "Valley of Death" casestudy better are - – talent flight as more people leaving formal jobs, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
wage bills are increasing, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Immunovaccine (IMV): Preparing to Cross the "Valley of Death"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Immunovaccine (IMV): Preparing to Cross the "Valley of Death" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Immunovaccine Imv, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" can be done for the following purposes –
1. Strategic planning using facts provided in Immunovaccine (IMV): Preparing to Cross the "Valley of Death" case study
2. Improving business portfolio management of Immunovaccine Imv
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 Immunovaccine Imv
Strengths Immunovaccine (IMV): Preparing to Cross the "Valley of Death" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Immunovaccine Imv in Immunovaccine (IMV): Preparing to Cross the "Valley of Death" Harvard Business Review case study are -
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Immunovaccine Imv digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Immunovaccine Imv 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 switching costs
– The high switching costs that Immunovaccine Imv 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
– Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Immunovaccine Imv has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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.
Cross disciplinary teams
– Horizontal connected teams at the Immunovaccine Imv 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.
Operational resilience
– The operational resilience strategy in the Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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.
Low bargaining power of suppliers
– Suppliers of Immunovaccine Imv in the sector have low bargaining power. Immunovaccine (IMV): Preparing to Cross the "Valley of Death" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Immunovaccine Imv to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Immunovaccine Imv has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Immunovaccine Imv 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.
Effective Research and Development (R&D)
– Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Immunovaccine Imv
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Immunovaccine Imv does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Immunovaccine Imv 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 Ella Korets-Smith, Suhaib Riaz 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Immunovaccine (IMV): Preparing to Cross the "Valley of Death" firm has clearly differentiated products in the market place. This has enabled Immunovaccine Imv to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Immunovaccine Imv to invest into research and development (R&D) and innovation.
Weaknesses Immunovaccine (IMV): Preparing to Cross the "Valley of Death" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Immunovaccine (IMV): Preparing to Cross the "Valley of Death" are -
High operating costs
– Compare to the competitors, firm in the HBR case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine Imv 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death", in the dynamic environment Immunovaccine Imv has struggled to respond to the nimble upstart competition. Immunovaccine Imv has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Immunovaccine Imv 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.
Low market penetration in new markets
– Outside its home market of Immunovaccine Imv, firm in the HBR case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Immunovaccine Imv supply chain. Even after few cautionary changes mentioned in the HBR case study - Immunovaccine (IMV): Preparing to Cross the "Valley of Death", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Immunovaccine Imv vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" can leverage the sales team experience to cultivate customer relationships as Immunovaccine Imv is planning to shift buying processes online.
Interest costs
– Compare to the competition, Immunovaccine Imv 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.
Capital Spending Reduction
– Even during the low interest decade, Immunovaccine Imv 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.
Increasing silos among functional specialists
– The organizational structure of Immunovaccine Imv is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Immunovaccine Imv needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Immunovaccine Imv to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death", it seems that the employees of Immunovaccine Imv 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death", is just above the industry average. Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" | 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" are -
Using analytics as competitive advantage
– Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Immunovaccine Imv to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Immunovaccine Imv 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.
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 Immunovaccine Imv in the consumer business. Now Immunovaccine Imv can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Immunovaccine Imv 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.
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. Immunovaccine Imv can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Immunovaccine Imv to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Immunovaccine Imv to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Immunovaccine Imv 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Immunovaccine Imv can use these opportunities to build new business models that can help the communities that Immunovaccine Imv operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Better consumer reach
– The expansion of the 5G network will help Immunovaccine Imv to increase its market reach. Immunovaccine Imv 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Immunovaccine Imv is facing challenges because of the dominance of functional experts in the organization. Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine Imv 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.
Creating value in data economy
– The success of analytics program of Immunovaccine Imv has opened avenues for new revenue streams for the organization in the industry. This can help Immunovaccine Imv to build a more holistic ecosystem as suggested in the Immunovaccine (IMV): Preparing to Cross the "Valley of Death" case study. Immunovaccine Imv can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Immunovaccine Imv can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Immunovaccine (IMV): Preparing to Cross the "Valley of Death" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death" are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Immunovaccine Imv 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.
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 Immunovaccine Imv.
Environmental challenges
– Immunovaccine Imv 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. Immunovaccine Imv can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing wage structure of Immunovaccine Imv
– 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 Immunovaccine Imv.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Immunovaccine (IMV): Preparing to Cross the "Valley of Death", Immunovaccine Imv 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 .
High dependence on third party suppliers
– Immunovaccine Imv 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.
Regulatory challenges
– Immunovaccine Imv 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.
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. Immunovaccine Imv 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.
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. Immunovaccine Imv needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Immunovaccine Imv 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" .
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.
Stagnating economy with rate increase
– Immunovaccine Imv 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.
Weighted SWOT Analysis of Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine (IMV): Preparing to Cross the "Valley of Death" 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 Immunovaccine Imv needs to make to build a sustainable competitive advantage.