International AIDS Vaccine Initiative SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of International AIDS Vaccine Initiative

Dedicated to accelerating the development of a safe, effective, accessible, preventive HIV vaccine, the International AIDS Vaccine Initiative (IAVI) pioneered ways of addressing the inadequate incentive structures that prevented progress toward vaccines for AIDS and other diseases predominantly affecting poor populations in tropical countries. As an intermediary nonprofit organization, IAVI brought together partners with different perspectives and motivations from nonprofit, industry, government and scientific research sectors toward developing vaccines. IAVI played several roles: honest broker, integrator and communicator of knowledge regarding AIDS vaccine research, passionate advocate for AIDS vaccines at national and international levels, and coordinator and manager of research and development initiatives. In 2008, IAVI invested further in its own laboratories and research infrastructure, moving a step upstream in vaccine development partnerships and clinical research. How should IAVI manage tensions between what is necessary to achieve its mission and what is necessary to build new incentive structures that enable key actors to work together effectively?

Authors :: Allen Grossman, Catherine Ross

Topics :: Leadership & Managing People

Tags :: Health, Innovation, International business, Social enterprise, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "International AIDS Vaccine Initiative" written by Allen Grossman, Catherine Ross includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iavi Vaccine facing as an external strategic factors. Some of the topics covered in International AIDS Vaccine Initiative case study are - Strategic Management Strategies, Health, Innovation, International business, Social enterprise and Leadership & Managing People.

Some of the macro environment factors that can be used to understand the International AIDS Vaccine Initiative casestudy better are - – central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing household debt because of falling income levels, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, there is backlash against globalization, etc

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Introduction to SWOT Analysis of International AIDS Vaccine Initiative

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in International AIDS Vaccine Initiative case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iavi Vaccine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iavi Vaccine 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of International AIDS Vaccine Initiative can be done for the following purposes –
1. Strategic planning using facts provided in International AIDS Vaccine Initiative case study
2. Improving business portfolio management of Iavi Vaccine
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 Iavi Vaccine

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Strengths International AIDS Vaccine Initiative | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Iavi Vaccine in International AIDS Vaccine Initiative Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Iavi Vaccine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Learning organization

- Iavi Vaccine 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 Iavi Vaccine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in International AIDS Vaccine Initiative Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Sustainable margins compare to other players in Leadership & Managing People industry

– International AIDS Vaccine Initiative firm has clearly differentiated products in the market place. This has enabled Iavi Vaccine to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Iavi Vaccine to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Iavi Vaccine 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.

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Iavi Vaccine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Iavi Vaccine 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.

Effective Research and Development (R&D)

– Iavi Vaccine 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 International AIDS Vaccine Initiative - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High brand equity

– Iavi Vaccine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iavi Vaccine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Organizational Resilience of Iavi Vaccine

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iavi Vaccine does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to lead change in Leadership & Managing People field

– Iavi Vaccine 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 Iavi Vaccine 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 Iavi Vaccine 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.

Innovation driven organization

– Iavi Vaccine is one of the most innovative firm in sector. Manager in International AIDS Vaccine Initiative Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Training and development

– Iavi Vaccine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in International AIDS Vaccine Initiative 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.

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Weaknesses International AIDS Vaccine Initiative | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of International AIDS Vaccine Initiative are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study International AIDS Vaccine Initiative, in the dynamic environment Iavi Vaccine has struggled to respond to the nimble upstart competition. Iavi Vaccine 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 Iavi Vaccine products

– To increase the profitability and margins on the products, Iavi Vaccine needs to provide more differentiated products than what it is currently offering in the marketplace.

High operating costs

– Compare to the competitors, firm in the HBR case study International AIDS Vaccine Initiative 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 Iavi Vaccine 's lucrative customers.

High cash cycle compare to competitors

Iavi Vaccine 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.

Slow decision making process

– As mentioned earlier in the report, Iavi Vaccine has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Iavi Vaccine even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Low market penetration in new markets

– Outside its home market of Iavi Vaccine, firm in the HBR case study International AIDS Vaccine Initiative 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 Iavi Vaccine supply chain. Even after few cautionary changes mentioned in the HBR case study - International AIDS Vaccine Initiative, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iavi Vaccine vulnerable to further global disruptions in South East Asia.

Interest costs

– Compare to the competition, Iavi Vaccine 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study International AIDS Vaccine Initiative, it seems that the employees of Iavi Vaccine 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.

Skills based hiring

– The stress on hiring functional specialists at Iavi Vaccine 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.

Increasing silos among functional specialists

– The organizational structure of Iavi Vaccine is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Iavi Vaccine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Iavi Vaccine to focus more on services rather than just following the product oriented approach.

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Opportunities International AIDS Vaccine Initiative | 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 International AIDS Vaccine Initiative are -

Developing new processes and practices

– Iavi Vaccine 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.

Leveraging digital technologies

– Iavi Vaccine 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Iavi Vaccine 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iavi Vaccine can use these opportunities to build new business models that can help the communities that Iavi Vaccine operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iavi Vaccine 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 Iavi Vaccine to hire the very best people irrespective of their geographical location.

Using analytics as competitive advantage

– Iavi Vaccine 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 International AIDS Vaccine Initiative - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iavi Vaccine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Iavi Vaccine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Manufacturing automation

– Iavi Vaccine 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.

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 Iavi Vaccine 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.

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. Iavi Vaccine can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Iavi Vaccine is facing challenges because of the dominance of functional experts in the organization. International AIDS Vaccine Initiative 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.

Creating value in data economy

– The success of analytics program of Iavi Vaccine has opened avenues for new revenue streams for the organization in the industry. This can help Iavi Vaccine to build a more holistic ecosystem as suggested in the International AIDS Vaccine Initiative case study. Iavi Vaccine can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Iavi Vaccine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. International AIDS Vaccine Initiative 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.

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Threats International AIDS Vaccine Initiative External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study International AIDS Vaccine Initiative are -

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Iavi Vaccine needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

Increasing wage structure of Iavi Vaccine

– 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 Iavi Vaccine.

Technology acceleration in Forth Industrial Revolution

– Iavi Vaccine has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Iavi Vaccine 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.

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. Iavi Vaccine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Iavi Vaccine 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iavi Vaccine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Consumer confidence and its impact on Iavi Vaccine 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.

Stagnating economy with rate increase

– Iavi Vaccine 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

– Iavi Vaccine 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.

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 Iavi Vaccine.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Iavi Vaccine 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 International AIDS Vaccine Initiative .

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 Iavi Vaccine business can come under increasing regulations regarding data privacy, data security, etc.

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.

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Weighted SWOT Analysis of International AIDS Vaccine Initiative 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 International AIDS Vaccine Initiative 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 International AIDS Vaccine Initiative 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 International AIDS Vaccine Initiative 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 International AIDS Vaccine Initiative 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 Iavi Vaccine needs to make to build a sustainable competitive advantage.

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