Cold Chain Distribution Issues at Indo-Euro Pharma SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cold Chain Distribution Issues at Indo-Euro Pharma
The supply chain director of Indo-Euro Pharma summoned an urgent meeting in response to significant losses incurred by the company in the last fiscal year. This was primarily due to the return of yet another international consignment of temperature-sensitive drugs (TSDs) - this time worth millions of dollars. The meeting focused on the inability of Indo-Euro Pharma to appropriately distribute and monitor TSDs cost effectively across the various stages and locations of the supply chain - especially at the pharmacist level. Deviations from drugs' required temperature ranges could happen during packaging, storage, transport, loading and unloading in aircraft, sea containers, trucks, etc. It was extremely difficult to monitor whether pharmacists were following proper procedures for storing TSDs. Most medical stores in India had domestic refrigerators that required frequent calibration. The problems indicated the need for Indo-Euro Pharma to adopt an alternative distribution system that was specifically tailored for TSDs. Mohit Srivastava is affiliated with Indian Institute of Management, Udaipur. Helen Rogers is affiliated with Friedrich Alexander University Erlangen. Kulwant Pawar is affiliated with University of Nottingham. Janat Shah is affiliated with Indian Institute of Management, Udaipur
Authors :: Mohit Srivastava, Helen Rogers, Kulwant Pawar, Janat Shah
Swot Analysis of "Cold Chain Distribution Issues at Indo-Euro Pharma" written by Mohit Srivastava, Helen Rogers, Kulwant Pawar, Janat Shah includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tsds Indo facing as an external strategic factors. Some of the topics covered in Cold Chain Distribution Issues at Indo-Euro Pharma case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Cold Chain Distribution Issues at Indo-Euro Pharma casestudy better are - – there is backlash against globalization, wage bills are increasing, increasing energy prices, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of Cold Chain Distribution Issues at Indo-Euro Pharma
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cold Chain Distribution Issues at Indo-Euro Pharma case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tsds Indo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tsds Indo 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 Cold Chain Distribution Issues at Indo-Euro Pharma can be done for the following purposes –
1. Strategic planning using facts provided in Cold Chain Distribution Issues at Indo-Euro Pharma case study
2. Improving business portfolio management of Tsds Indo
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tsds Indo
Strengths Cold Chain Distribution Issues at Indo-Euro Pharma | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tsds Indo in Cold Chain Distribution Issues at Indo-Euro Pharma Harvard Business Review case study are -
Diverse revenue streams
– Tsds Indo is present in almost all the verticals within the industry. This has provided firm in Cold Chain Distribution Issues at Indo-Euro Pharma 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
– Tsds Indo 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 Mohit Srivastava, Helen Rogers, Kulwant Pawar, Janat Shah 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.
High switching costs
– The high switching costs that Tsds Indo 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 Leadership & Managing People segment
- digital transformation varies from industry to industry. For Tsds Indo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tsds Indo 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.
Organizational Resilience of Tsds Indo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tsds Indo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Tsds Indo is one of the leading recruiters in the industry. Managers in the Cold Chain Distribution Issues at Indo-Euro Pharma are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Tsds Indo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tsds Indo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Tsds Indo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tsds Indo 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)
– Tsds Indo 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 Cold Chain Distribution Issues at Indo-Euro Pharma - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Tsds Indo 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 Tsds Indo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cold Chain Distribution Issues at Indo-Euro Pharma Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Tsds Indo 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.
Low bargaining power of suppliers
– Suppliers of Tsds Indo in the sector have low bargaining power. Cold Chain Distribution Issues at Indo-Euro Pharma has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tsds Indo to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Cold Chain Distribution Issues at Indo-Euro Pharma | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cold Chain Distribution Issues at Indo-Euro Pharma are -
No frontier risks strategy
– After analyzing the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Capital Spending Reduction
– Even during the low interest decade, Tsds Indo 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma, it seems that the employees of Tsds Indo 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cold Chain Distribution Issues at Indo-Euro Pharma 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 Tsds Indo has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma, is just above the industry average. Tsds Indo 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 operating costs
– Compare to the competitors, firm in the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma 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 Tsds Indo 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Tsds Indo 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.
Low market penetration in new markets
– Outside its home market of Tsds Indo, firm in the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tsds Indo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cold Chain Distribution Issues at Indo-Euro Pharma can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Cold Chain Distribution Issues at Indo-Euro Pharma 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 Cold Chain Distribution Issues at Indo-Euro Pharma can leverage the sales team experience to cultivate customer relationships as Tsds Indo is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Mohit Srivastava, Helen Rogers, Kulwant Pawar, Janat Shah suggests that, Tsds Indo 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.
Opportunities Cold Chain Distribution Issues at Indo-Euro Pharma | 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 Cold Chain Distribution Issues at Indo-Euro Pharma are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Tsds Indo 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.
Using analytics as competitive advantage
– Tsds Indo 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 Cold Chain Distribution Issues at Indo-Euro Pharma - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tsds Indo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Tsds Indo can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Manufacturing automation
– Tsds Indo can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tsds Indo can use these opportunities to build new business models that can help the communities that Tsds Indo operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Tsds Indo 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Tsds Indo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tsds Indo 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, Cold Chain Distribution Issues at Indo-Euro Pharma, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Tsds Indo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Tsds Indo 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 Tsds Indo has opened avenues for new revenue streams for the organization in the industry. This can help Tsds Indo to build a more holistic ecosystem as suggested in the Cold Chain Distribution Issues at Indo-Euro Pharma case study. Tsds Indo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tsds Indo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Tsds Indo can develop new processes and procedures in Leadership & Managing People 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.
Threats Cold Chain Distribution Issues at Indo-Euro Pharma External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cold Chain Distribution Issues at Indo-Euro Pharma 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 Tsds Indo in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Tsds Indo 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.
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.
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 Tsds Indo.
Stagnating economy with rate increase
– Tsds Indo 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.
Technology acceleration in Forth Industrial Revolution
– Tsds Indo has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Tsds Indo needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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 Tsds Indo business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tsds Indo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Tsds Indo is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Tsds Indo 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tsds Indo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tsds Indo 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 Cold Chain Distribution Issues at Indo-Euro Pharma .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tsds Indo in the Leadership & Managing People industry. The Leadership & Managing People 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.
Weighted SWOT Analysis of Cold Chain Distribution Issues at Indo-Euro Pharma 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 Cold Chain Distribution Issues at Indo-Euro Pharma 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 Cold Chain Distribution Issues at Indo-Euro Pharma 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 Cold Chain Distribution Issues at Indo-Euro Pharma 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 Cold Chain Distribution Issues at Indo-Euro Pharma 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 Tsds Indo needs to make to build a sustainable competitive advantage.