Case Study Description of CIBA Vision: The EUROLOGISTICS Initiative
The case documents the evolving characteristics of the contact lens market, driven by rapid technological innovation. The introduction of disposable contact lenses has transformed this business from a low-volume high-margin market space to a high-volume low-margin one. This transformation necessitated a drastically new supply chain solution, which would significantly reduce manufacturing and distribution costs while preserving the close relationships CIBA Vision enjoyed with the health care professionals in the local markets.
Swot Analysis of "CIBA Vision: The EUROLOGISTICS Initiative" written by Enver Yucesan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ciba Contact facing as an external strategic factors. Some of the topics covered in CIBA Vision: The EUROLOGISTICS Initiative case study are - Strategic Management Strategies, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the CIBA Vision: The EUROLOGISTICS Initiative casestudy better are - – geopolitical disruptions, central banks are concerned over increasing inflation, wage bills are increasing, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of CIBA Vision: The EUROLOGISTICS Initiative
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CIBA Vision: The EUROLOGISTICS Initiative case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ciba Contact, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ciba Contact 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 CIBA Vision: The EUROLOGISTICS Initiative can be done for the following purposes –
1. Strategic planning using facts provided in CIBA Vision: The EUROLOGISTICS Initiative case study
2. Improving business portfolio management of Ciba Contact
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 Ciba Contact
Strengths CIBA Vision: The EUROLOGISTICS Initiative | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ciba Contact in CIBA Vision: The EUROLOGISTICS Initiative Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– CIBA Vision: The EUROLOGISTICS Initiative firm has clearly differentiated products in the market place. This has enabled Ciba Contact to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Ciba Contact to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Ciba Contact 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 CIBA Vision: The EUROLOGISTICS 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.
Superior customer experience
– The customer experience strategy of Ciba Contact in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Ciba Contact 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 Ciba Contact is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CIBA Vision: The EUROLOGISTICS Initiative Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Ciba Contact has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ciba Contact 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.
Organizational Resilience of Ciba Contact
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ciba Contact does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Ciba Contact digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ciba Contact 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.
Cross disciplinary teams
– Horizontal connected teams at the Ciba Contact 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 Ciba Contact in the sector have low bargaining power. CIBA Vision: The EUROLOGISTICS Initiative has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ciba Contact to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Ciba Contact is one of the leading recruiters in the industry. Managers in the CIBA Vision: The EUROLOGISTICS Initiative are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Ciba Contact is one of the most innovative firm in sector. Manager in CIBA Vision: The EUROLOGISTICS Initiative Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the CIBA Vision: The EUROLOGISTICS Initiative 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.
Weaknesses CIBA Vision: The EUROLOGISTICS Initiative | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CIBA Vision: The EUROLOGISTICS Initiative are -
Low market penetration in new markets
– Outside its home market of Ciba Contact, firm in the HBR case study CIBA Vision: The EUROLOGISTICS Initiative needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study CIBA Vision: The EUROLOGISTICS 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 Ciba Contact 's lucrative customers.
Lack of clear differentiation of Ciba Contact products
– To increase the profitability and margins on the products, Ciba Contact needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the CIBA Vision: The EUROLOGISTICS Initiative 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 Ciba Contact has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CIBA Vision: The EUROLOGISTICS Initiative, it seems that the employees of Ciba Contact 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 Ciba Contact supply chain. Even after few cautionary changes mentioned in the HBR case study - CIBA Vision: The EUROLOGISTICS Initiative, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ciba Contact vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Ciba Contact 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ciba Contact is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CIBA Vision: The EUROLOGISTICS Initiative can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Ciba Contact 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study CIBA Vision: The EUROLOGISTICS Initiative, is just above the industry average. Ciba Contact 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study CIBA Vision: The EUROLOGISTICS Initiative, in the dynamic environment Ciba Contact has struggled to respond to the nimble upstart competition. Ciba Contact has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities CIBA Vision: The EUROLOGISTICS 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 CIBA Vision: The EUROLOGISTICS Initiative are -
Building a culture of innovation
– managers at Ciba Contact 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.
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 Ciba Contact 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ciba Contact 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.
Developing new processes and practices
– Ciba Contact 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.
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. Ciba Contact can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Ciba Contact 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
– Ciba Contact 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.
Loyalty marketing
– Ciba Contact has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Ciba Contact can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CIBA Vision: The EUROLOGISTICS 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.
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. Ciba Contact can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ciba Contact can use these opportunities to build new business models that can help the communities that Ciba Contact 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 Ciba Contact 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 Ciba Contact to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ciba Contact is facing challenges because of the dominance of functional experts in the organization. CIBA Vision: The EUROLOGISTICS 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.
Threats CIBA Vision: The EUROLOGISTICS Initiative External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CIBA Vision: The EUROLOGISTICS Initiative are -
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 Ciba Contact.
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. Ciba Contact will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Consumer confidence and its impact on Ciba Contact 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Ciba Contact 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 Leadership & Managing People industry regulations.
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 Ciba Contact business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ciba Contact 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 CIBA Vision: The EUROLOGISTICS Initiative .
Increasing wage structure of Ciba Contact
– 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 Ciba Contact.
Shortening product life cycle
– it is one of the major threat that Ciba Contact is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ciba Contact 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.
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.
Technology acceleration in Forth Industrial Revolution
– Ciba Contact has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ciba Contact 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.
Environmental challenges
– Ciba Contact 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. Ciba Contact can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of CIBA Vision: The EUROLOGISTICS 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 CIBA Vision: The EUROLOGISTICS 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 CIBA Vision: The EUROLOGISTICS 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 CIBA Vision: The EUROLOGISTICS 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 CIBA Vision: The EUROLOGISTICS 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 Ciba Contact needs to make to build a sustainable competitive advantage.
