GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS
The case describes the interactions among pharmaceutical companies, NGOs, and governments in the context of the AIDS epidemic in South Africa. Oxfam singled out GSK as the target for its new campaign, "Cut the Cost." The goal was to hit where it would hurt the most--GSK's share price. At the same time other NGOs also went after GSK. For GSK the situation in South Africa was extremely delicate. The ultimate issues were patent and price protection globally. The pharmaceutical companies were afraid that cheap generic drugs could flood the West, undermining the entire pricing structure and their ability to fund new research. Defending the patents and prices seemed essential. Yet, fighting the NGOs could bring negative publicity and, ultimately, be self-defeating. Meanwhile, million of people were dying of AIDS in South Africa.
Swot Analysis of "GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS" written by Michael Yaziji, Anna Lindblom includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gsk Ngos facing as an external strategic factors. Some of the topics covered in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS case study are - Strategic Management Strategies, Intellectual property and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS casestudy better are - – supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gsk Ngos, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gsk Ngos 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS can be done for the following purposes –
1. Strategic planning using facts provided in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS case study
2. Improving business portfolio management of Gsk Ngos
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 Gsk Ngos
Strengths GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gsk Ngos in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS Harvard Business Review case study are -
Innovation driven organization
– Gsk Ngos is one of the most innovative firm in sector. Manager in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Gsk Ngos is present in almost all the verticals within the industry. This has provided firm in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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.
Highly skilled collaborators
– Gsk Ngos 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Gsk Ngos 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Gsk Ngos is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Gsk Ngos 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 Gsk Ngos in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Gsk Ngos has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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.
Organizational Resilience of Gsk Ngos
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gsk Ngos does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Gsk Ngos has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gsk Ngos to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Gsk Ngos 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.
Learning organization
- Gsk Ngos 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 Gsk Ngos is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Gsk Ngos has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gsk Ngos 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.
Weaknesses GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 Gsk Ngos has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Gsk Ngos 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.
Interest costs
– Compare to the competition, Gsk Ngos 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, Gsk Ngos 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.
Slow to strategic competitive environment developments
– As GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS HBR case study mentions - Gsk Ngos 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.
No frontier risks strategy
– After analyzing the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS, it seems that the employees of Gsk Ngos 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 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 Gsk Ngos supply chain. Even after few cautionary changes mentioned in the HBR case study - GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gsk Ngos vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Gsk Ngos 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. Gsk Ngos 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.
Need for greater diversity
– Gsk Ngos 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 cash cycle compare to competitors
Gsk Ngos 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.
Opportunities GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS | 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gsk Ngos can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Gsk Ngos can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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. Gsk Ngos can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gsk Ngos can use these opportunities to build new business models that can help the communities that Gsk Ngos operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gsk Ngos 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.
Using analytics as competitive advantage
– Gsk Ngos 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gsk Ngos to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Gsk Ngos has opened avenues for new revenue streams for the organization in the industry. This can help Gsk Ngos to build a more holistic ecosystem as suggested in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS case study. Gsk Ngos can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Gsk Ngos to increase its market reach. Gsk Ngos 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.
Developing new processes and practices
– Gsk Ngos 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gsk Ngos 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.
Manufacturing automation
– Gsk Ngos 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.
Leveraging digital technologies
– Gsk Ngos 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gsk Ngos can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Gsk Ngos 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.
Threats GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS are -
High dependence on third party suppliers
– Gsk Ngos 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.
Technology acceleration in Forth Industrial Revolution
– Gsk Ngos has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Gsk Ngos 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gsk Ngos 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Gsk Ngos
– 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 Gsk Ngos.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gsk Ngos 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS .
Stagnating economy with rate increase
– Gsk Ngos 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.
Shortening product life cycle
– it is one of the major threat that Gsk Ngos is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Gsk Ngos 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 Gsk Ngos 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 Gsk Ngos 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.
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. Gsk Ngos needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Gsk Ngos in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS 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 Gsk Ngos needs to make to build a sustainable competitive advantage.
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