Merck Global Health Initiatives (B): Botswana SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Merck Global Health Initiatives (B): Botswana
The case series focuses on Merck's drug donation program and then raises new issues facing management about what to do about HIV/AIDS in Africa given the company's development of a new therapy. Describes collaboration among many parties including the Gates Foundation, other pharmaceutical companies, and the government of Botswana.
Authors :: James E. Austin, Diana Barrett, James Weber
Swot Analysis of "Merck Global Health Initiatives (B): Botswana" written by James E. Austin, Diana Barrett, James Weber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Botswana Merck's facing as an external strategic factors. Some of the topics covered in Merck Global Health Initiatives (B): Botswana case study are - Strategic Management Strategies, Government, Health, Social enterprise and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Merck Global Health Initiatives (B): Botswana casestudy better are - – challanges to central banks by blockchain based private currencies, 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, increasing energy prices, central banks are concerned over increasing inflation, wage bills are increasing,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of Merck Global Health Initiatives (B): Botswana
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Merck Global Health Initiatives (B): Botswana case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Botswana Merck's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Botswana Merck's 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 Merck Global Health Initiatives (B): Botswana can be done for the following purposes –
1. Strategic planning using facts provided in Merck Global Health Initiatives (B): Botswana case study
2. Improving business portfolio management of Botswana Merck's
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 Botswana Merck's
Strengths Merck Global Health Initiatives (B): Botswana | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Botswana Merck's in Merck Global Health Initiatives (B): Botswana Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Botswana Merck's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Botswana Merck's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Botswana Merck's 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)
– Botswana Merck's 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 Merck Global Health Initiatives (B): Botswana - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Botswana Merck's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Botswana Merck's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Botswana Merck's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Botswana Merck's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Botswana Merck's is present in almost all the verticals within the industry. This has provided firm in Merck Global Health Initiatives (B): Botswana 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.
High switching costs
– The high switching costs that Botswana Merck's 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Merck Global Health Initiatives (B): Botswana firm has clearly differentiated products in the market place. This has enabled Botswana Merck's to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Botswana Merck's to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Merck Global Health Initiatives (B): Botswana 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.
Ability to lead change in Leadership & Managing People field
– Botswana Merck's 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 Botswana Merck's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Botswana Merck's 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.
Ability to recruit top talent
– Botswana Merck's is one of the leading recruiters in the industry. Managers in the Merck Global Health Initiatives (B): Botswana are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Merck Global Health Initiatives (B): Botswana | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Merck Global Health Initiatives (B): Botswana are -
Low market penetration in new markets
– Outside its home market of Botswana Merck's, firm in the HBR case study Merck Global Health Initiatives (B): Botswana needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Botswana Merck's 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 Merck Global Health Initiatives (B): Botswana, is just above the industry average. Botswana Merck's 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 Merck Global Health Initiatives (B): Botswana 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 Botswana Merck's 's lucrative customers.
Interest costs
– Compare to the competition, Botswana Merck's 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.
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 Botswana Merck's supply chain. Even after few cautionary changes mentioned in the HBR case study - Merck Global Health Initiatives (B): Botswana, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Botswana Merck's vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Botswana Merck's 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.
Capital Spending Reduction
– Even during the low interest decade, Botswana Merck's 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.
Lack of clear differentiation of Botswana Merck's products
– To increase the profitability and margins on the products, Botswana Merck's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Botswana Merck's 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.
Aligning sales with marketing
– It come across in the case study Merck Global Health Initiatives (B): Botswana 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 Merck Global Health Initiatives (B): Botswana can leverage the sales team experience to cultivate customer relationships as Botswana Merck's is planning to shift buying processes online.
Opportunities Merck Global Health Initiatives (B): Botswana | 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 Merck Global Health Initiatives (B): Botswana are -
Learning at scale
– Online learning technologies has now opened space for Botswana Merck's 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.
Creating value in data economy
– The success of analytics program of Botswana Merck's has opened avenues for new revenue streams for the organization in the industry. This can help Botswana Merck's to build a more holistic ecosystem as suggested in the Merck Global Health Initiatives (B): Botswana case study. Botswana Merck's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Botswana Merck's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Botswana Merck's 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 Botswana Merck's 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.
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. Botswana Merck's 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. Botswana Merck's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Botswana Merck's can use these opportunities to build new business models that can help the communities that Botswana Merck's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Botswana Merck's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Merck Global Health Initiatives (B): Botswana 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.
Using analytics as competitive advantage
– Botswana Merck's 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 Merck Global Health Initiatives (B): Botswana - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Botswana Merck's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Botswana Merck's to increase its market reach. Botswana Merck's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Botswana Merck's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Botswana Merck's is facing challenges because of the dominance of functional experts in the organization. Merck Global Health Initiatives (B): Botswana 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.
Loyalty marketing
– Botswana Merck's 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.
Threats Merck Global Health Initiatives (B): Botswana External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Merck Global Health Initiatives (B): Botswana are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Botswana Merck's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Botswana Merck's
– 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 Botswana Merck's.
High dependence on third party suppliers
– Botswana Merck's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Botswana Merck's 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.
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 Botswana Merck's.
Consumer confidence and its impact on Botswana Merck's 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. Botswana Merck's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Botswana Merck's business can come under increasing regulations regarding data privacy, data security, etc.
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 Botswana Merck's in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– Botswana Merck's 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.
Shortening product life cycle
– it is one of the major threat that Botswana Merck's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Botswana Merck's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Botswana Merck's has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Botswana Merck's 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.
Weighted SWOT Analysis of Merck Global Health Initiatives (B): Botswana 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 Merck Global Health Initiatives (B): Botswana 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 Merck Global Health Initiatives (B): Botswana 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 Merck Global Health Initiatives (B): Botswana 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 Merck Global Health Initiatives (B): Botswana 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 Botswana Merck's needs to make to build a sustainable competitive advantage.
