Case Study Description of Glenmark Generics Inc.: Launch @ Risk
The U.S.-based executive vice-president (EVP) of Glenmark Generics Inc., the subsidiary of an Indian generic manufacturer, is weighing his options on whether or not to proceed with what is known as a Launch @ Risk in the U.S. market. Defined as a "risk taken by a generic company when it puts a product on the market before resolving outstanding patent lawsuits against it," Launch @ Risk is a widely acknowledged route to gain an entry into the world's largest and most profitable pharmaceutical market. The focal product is the generic version of a hypertension drug whose patent is set to expire in 2015. Glenmark Generics has just secured approval from the U.S. Food and Drugs Administration (FDA) to launch a low-cost generic version of the patented drug but the FDA approval is being contested in a court of law by the patent holder. While awaiting the court's ruling, the EVP must evaluate his company's options and decide whether to proceed, in the interim, with the product launch.
Swot Analysis of "Glenmark Generics Inc.: Launch @ Risk" written by Peter C Bell, Ramasastry Chandrasekhar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Glenmark Generic facing as an external strategic factors. Some of the topics covered in Glenmark Generics Inc.: Launch @ Risk case study are - Strategic Management Strategies, Marketing, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Glenmark Generics Inc.: Launch @ Risk casestudy better are - – there is backlash against globalization, increasing commodity prices, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing energy prices, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Glenmark Generics Inc.: Launch @ Risk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Glenmark Generics Inc.: Launch @ Risk case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Glenmark Generic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Glenmark Generic 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 Glenmark Generics Inc.: Launch @ Risk can be done for the following purposes –
1. Strategic planning using facts provided in Glenmark Generics Inc.: Launch @ Risk case study
2. Improving business portfolio management of Glenmark Generic
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 Glenmark Generic
Strengths Glenmark Generics Inc.: Launch @ Risk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Glenmark Generic in Glenmark Generics Inc.: Launch @ Risk Harvard Business Review case study are -
High brand equity
– Glenmark Generic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Glenmark Generic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Glenmark Generics Inc.: Launch @ Risk 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.
Innovation driven organization
– Glenmark Generic is one of the most innovative firm in sector. Manager in Glenmark Generics Inc.: Launch @ Risk Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Glenmark Generic is one of the leading recruiters in the industry. Managers in the Glenmark Generics Inc.: Launch @ Risk are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Glenmark Generic in the sector have low bargaining power. Glenmark Generics Inc.: Launch @ Risk has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Glenmark Generic to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Glenmark Generic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Glenmark Generic 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
- Glenmark Generic 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 Glenmark Generic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Glenmark Generics Inc.: Launch @ Risk Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Glenmark Generic 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 Glenmark Generic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– Glenmark Generics Inc.: Launch @ Risk firm has clearly differentiated products in the market place. This has enabled Glenmark Generic to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Glenmark Generic to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Glenmark Generic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Glenmark Generic 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.
Training and development
– Glenmark Generic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Glenmark Generics Inc.: Launch @ Risk 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.
Weaknesses Glenmark Generics Inc.: Launch @ Risk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Glenmark Generics Inc.: Launch @ Risk are -
Increasing silos among functional specialists
– The organizational structure of Glenmark Generic is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Glenmark Generic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Glenmark Generic to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generic has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Glenmark Generic, firm in the HBR case study Glenmark Generics Inc.: Launch @ Risk needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Glenmark Generic 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 cash cycle compare to competitors
Glenmark Generic 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.
Capital Spending Reduction
– Even during the low interest decade, Glenmark Generic has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Glenmark Generics Inc.: Launch @ Risk, it seems that the employees of Glenmark Generic 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.
Slow to strategic competitive environment developments
– As Glenmark Generics Inc.: Launch @ Risk HBR case study mentions - Glenmark Generic 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.
Products dominated business model
– Even though Glenmark Generic has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Glenmark Generics Inc.: Launch @ Risk should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Glenmark Generic 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Glenmark Generics Inc.: Launch @ Risk, is just above the industry average. Glenmark Generic 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.
Opportunities Glenmark Generics Inc.: Launch @ Risk | 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 Glenmark Generics Inc.: Launch @ Risk are -
Better consumer reach
– The expansion of the 5G network will help Glenmark Generic to increase its market reach. Glenmark Generic 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Glenmark Generic 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
– Glenmark Generic 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 Glenmark Generic 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.
Learning at scale
– Online learning technologies has now opened space for Glenmark Generic to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Glenmark Generic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Glenmark Generic is facing challenges because of the dominance of functional experts in the organization. Glenmark Generics Inc.: Launch @ Risk 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.
Using analytics as competitive advantage
– Glenmark Generic 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 Glenmark Generics Inc.: Launch @ Risk - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Glenmark Generic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Glenmark Generic 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Glenmark Generic 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 Glenmark Generic to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Glenmark Generic in the consumer business. Now Glenmark Generic can target international markets with far fewer capital restrictions requirements than the existing system.
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. Glenmark Generic 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. Glenmark Generic 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.
Buying journey improvements
– Glenmark Generic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Glenmark Generics Inc.: Launch @ Risk 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.
Threats Glenmark Generics Inc.: Launch @ Risk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Glenmark Generics Inc.: Launch @ Risk are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Glenmark Generic 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 Glenmark Generics Inc.: Launch @ Risk .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Glenmark Generic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Glenmark Generic has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Glenmark Generic 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. Glenmark Generic 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 Glenmark Generic 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.
Shortening product life cycle
– it is one of the major threat that Glenmark Generic 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 Glenmark Generic 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 Glenmark Generic in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Glenmark Generic needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Glenmark Generic 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 Glenmark Generic 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
– Glenmark Generic 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
– Glenmark Generic 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.
Weighted SWOT Analysis of Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generics Inc.: Launch @ Risk 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 Glenmark Generic needs to make to build a sustainable competitive advantage.
