Compulsory Licence for Saxagliptin: Protection versus Competition SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Compulsory Licence for Saxagliptin: Protection versus Competition
In June 2015, Lee Pharma Limited, a small Indian pharmaceutical company, filed an application with the Indian Patent Office for a grant of a compulsory licence to manufacture the diabetes drug Saxagliptin on the grounds that the patented version of the drug had not been made available to the public at an affordable price. The granting of a compulsory licence was expected to make the drug more affordable for the general public, but it would also undermine the interests of the patentee, a Western multinational company. If the developed world imposed sanctions against India in retaliation for such a protectionist measure, the flow of trade and foreign capital into the country would be adversely affected. Should the patent office strictly enforce the patent regime, which would encourage higher foreign capital inflows in research and development in the Indian pharmaceutical industry and promote inventions and innovations in the country? Or should it grant the compulsory licence, thereby attaching greater weight to the welfare of India's general public? Veena Keshav Pailwar is affiliated with Institute of Management Technology, Nagpur.
Swot Analysis of "Compulsory Licence for Saxagliptin: Protection versus Competition" written by Veena Keshav Pailwar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Compulsory Licence facing as an external strategic factors. Some of the topics covered in Compulsory Licence for Saxagliptin: Protection versus Competition case study are - Strategic Management Strategies, Globalization, Intellectual property, Manufacturing, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Compulsory Licence for Saxagliptin: Protection versus Competition casestudy better are - – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing commodity prices, cloud computing is disrupting traditional business models, increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Compulsory Licence for Saxagliptin: Protection versus Competition
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Compulsory Licence for Saxagliptin: Protection versus Competition case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Compulsory Licence, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Compulsory Licence 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 Compulsory Licence for Saxagliptin: Protection versus Competition can be done for the following purposes –
1. Strategic planning using facts provided in Compulsory Licence for Saxagliptin: Protection versus Competition case study
2. Improving business portfolio management of Compulsory Licence
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 Compulsory Licence
Strengths Compulsory Licence for Saxagliptin: Protection versus Competition | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Compulsory Licence in Compulsory Licence for Saxagliptin: Protection versus Competition Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Compulsory Licence for Saxagliptin: Protection versus Competition 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.
High switching costs
– The high switching costs that Compulsory Licence 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.
Ability to recruit top talent
– Compulsory Licence is one of the leading recruiters in the industry. Managers in the Compulsory Licence for Saxagliptin: Protection versus Competition are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Compulsory Licence 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 Compulsory Licence in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Compulsory Licence 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 Compulsory Licence for Saxagliptin: Protection versus Competition - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Compulsory Licence is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Veena Keshav Pailwar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Diverse revenue streams
– Compulsory Licence is present in almost all the verticals within the industry. This has provided firm in Compulsory Licence for Saxagliptin: Protection versus Competition 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
– Compulsory Licence 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 Compulsory Licence for Saxagliptin: Protection versus Competition HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Compulsory Licence is one of the most innovative firm in sector. Manager in Compulsory Licence for Saxagliptin: Protection versus Competition Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Compulsory Licence
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Compulsory Licence does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Compulsory Licence has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Compulsory Licence for Saxagliptin: Protection versus Competition 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.
Successful track record of launching new products
– Compulsory Licence has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Compulsory Licence 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 Compulsory Licence for Saxagliptin: Protection versus Competition | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Compulsory Licence for Saxagliptin: Protection versus Competition are -
Workers concerns about automation
– As automation is fast increasing in the segment, Compulsory Licence 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.
Products dominated business model
– Even though Compulsory Licence 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 - Compulsory Licence for Saxagliptin: Protection versus Competition should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Compulsory Licence for Saxagliptin: Protection versus Competition HBR case study mentions - Compulsory Licence 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.
Increasing silos among functional specialists
– The organizational structure of Compulsory Licence is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Compulsory Licence needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Compulsory Licence to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Compulsory Licence for Saxagliptin: Protection versus Competition, is just above the industry average. Compulsory Licence 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 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 Compulsory Licence supply chain. Even after few cautionary changes mentioned in the HBR case study - Compulsory Licence for Saxagliptin: Protection versus Competition, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Compulsory Licence vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence 's lucrative customers.
Need for greater diversity
– Compulsory Licence 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, Compulsory Licence 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 decision making process
– As mentioned earlier in the report, Compulsory Licence 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. Compulsory Licence 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.
High cash cycle compare to competitors
Compulsory Licence 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 Compulsory Licence for Saxagliptin: Protection versus Competition | 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 Compulsory Licence for Saxagliptin: Protection versus Competition are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Compulsory Licence is facing challenges because of the dominance of functional experts in the organization. Compulsory Licence for Saxagliptin: Protection versus Competition 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Compulsory Licence can use these opportunities to build new business models that can help the communities that Compulsory Licence 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 Compulsory Licence 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.
Learning at scale
– Online learning technologies has now opened space for Compulsory Licence 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.
Better consumer reach
– The expansion of the 5G network will help Compulsory Licence to increase its market reach. Compulsory Licence 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.
Building a culture of innovation
– managers at Compulsory Licence 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.
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 Compulsory Licence in the consumer business. Now Compulsory Licence can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Compulsory Licence has opened avenues for new revenue streams for the organization in the industry. This can help Compulsory Licence to build a more holistic ecosystem as suggested in the Compulsory Licence for Saxagliptin: Protection versus Competition case study. Compulsory Licence can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Compulsory Licence 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 Compulsory Licence to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Compulsory Licence 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.
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. Compulsory Licence can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Compulsory Licence 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Compulsory Licence can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Compulsory Licence for Saxagliptin: Protection versus Competition External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Compulsory Licence for Saxagliptin: Protection versus Competition are -
Consumer confidence and its impact on Compulsory Licence 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Compulsory Licence 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.
Regulatory challenges
– Compulsory Licence 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.
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. Compulsory Licence can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Compulsory Licence with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Compulsory Licence business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Compulsory Licence for Saxagliptin: Protection versus Competition, Compulsory Licence may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Shortening product life cycle
– it is one of the major threat that Compulsory Licence is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Compulsory Licence
– 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 Compulsory Licence.
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 Compulsory Licence.
Technology acceleration in Forth Industrial Revolution
– Compulsory Licence has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Compulsory Licence 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.
Stagnating economy with rate increase
– Compulsory Licence 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.
Weighted SWOT Analysis of Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence for Saxagliptin: Protection versus Competition 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 Compulsory Licence needs to make to build a sustainable competitive advantage.