Napo Pharmaceuticals: Pivot to Animal Health (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Napo Pharmaceuticals: Pivot to Animal Health (B)
University of California, Berkeley-Haas collectionSupplement for B5784
Authors :: Kristiana Raube
Topics :: Leadership & Managing People
Tags :: Joint ventures, Research & development, Social responsibility, Venture capital, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Napo Pharmaceuticals: Pivot to Animal Health (B)" written by Kristiana Raube includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that B5784 Napo facing as an external strategic factors. Some of the topics covered in Napo Pharmaceuticals: Pivot to Animal Health (B) case study are - Strategic Management Strategies, Joint ventures, Research & development, Social responsibility, Venture capital and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Napo Pharmaceuticals: Pivot to Animal Health (B) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, supply chains are disrupted by pandemic ,
talent flight as more people leaving formal jobs, geopolitical disruptions, etc
Introduction to SWOT Analysis of Napo Pharmaceuticals: Pivot to Animal Health (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Napo Pharmaceuticals: Pivot to Animal Health (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the B5784 Napo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which B5784 Napo 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 Napo Pharmaceuticals: Pivot to Animal Health (B) can be done for the following purposes –
1. Strategic planning using facts provided in Napo Pharmaceuticals: Pivot to Animal Health (B) case study
2. Improving business portfolio management of B5784 Napo
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 B5784 Napo
Strengths Napo Pharmaceuticals: Pivot to Animal Health (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of B5784 Napo in Napo Pharmaceuticals: Pivot to Animal Health (B) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of B5784 Napo in the sector have low bargaining power. Napo Pharmaceuticals: Pivot to Animal Health (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps B5784 Napo to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– B5784 Napo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. B5784 Napo 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.
Diverse revenue streams
– B5784 Napo is present in almost all the verticals within the industry. This has provided firm in Napo Pharmaceuticals: Pivot to Animal Health (B) 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
– B5784 Napo 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 Napo Pharmaceuticals: Pivot to Animal Health (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– B5784 Napo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled B5784 Napo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Napo Pharmaceuticals: Pivot to Animal Health (B) firm has clearly differentiated products in the market place. This has enabled B5784 Napo to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped B5784 Napo to invest into research and development (R&D) and innovation.
Innovation driven organization
– B5784 Napo is one of the most innovative firm in sector. Manager in Napo Pharmaceuticals: Pivot to Animal Health (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– B5784 Napo 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 Napo Pharmaceuticals: Pivot to Animal Health (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Leadership & Managing People field
– B5784 Napo 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 B5784 Napo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Napo Pharmaceuticals: Pivot to Animal Health (B) 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.
Strong track record of project management
– B5784 Napo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For B5784 Napo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. B5784 Napo 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.
Weaknesses Napo Pharmaceuticals: Pivot to Animal Health (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Napo Pharmaceuticals: Pivot to Animal Health (B) are -
Skills based hiring
– The stress on hiring functional specialists at B5784 Napo 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.
Capital Spending Reduction
– Even during the low interest decade, B5784 Napo 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.
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 B5784 Napo supply chain. Even after few cautionary changes mentioned in the HBR case study - Napo Pharmaceuticals: Pivot to Animal Health (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left B5784 Napo vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Napo Pharmaceuticals: Pivot to Animal Health (B) 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 B5784 Napo 's lucrative customers.
Products dominated business model
– Even though B5784 Napo 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 - Napo Pharmaceuticals: Pivot to Animal Health (B) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, B5784 Napo 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.
Workers concerns about automation
– As automation is fast increasing in the segment, B5784 Napo 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Napo Pharmaceuticals: Pivot to Animal Health (B) 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 B5784 Napo has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Napo Pharmaceuticals: Pivot to Animal Health (B) HBR case study mentions - B5784 Napo 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 B5784 Napo is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. B5784 Napo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help B5784 Napo to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Napo Pharmaceuticals: Pivot to Animal Health (B) 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 Napo Pharmaceuticals: Pivot to Animal Health (B) can leverage the sales team experience to cultivate customer relationships as B5784 Napo is planning to shift buying processes online.
Opportunities Napo Pharmaceuticals: Pivot to Animal Health (B) | 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 Napo Pharmaceuticals: Pivot to Animal Health (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, B5784 Napo is facing challenges because of the dominance of functional experts in the organization. Napo Pharmaceuticals: Pivot to Animal Health (B) 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.
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. B5784 Napo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– B5784 Napo 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.
Manufacturing automation
– B5784 Napo 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, B5784 Napo can use these opportunities to build new business models that can help the communities that B5784 Napo operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, B5784 Napo can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Napo Pharmaceuticals: Pivot to Animal Health (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– B5784 Napo 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 Napo Pharmaceuticals: Pivot to Animal Health (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help B5784 Napo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– B5784 Napo 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, B5784 Napo 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.
Building a culture of innovation
– managers at B5784 Napo 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for B5784 Napo 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 B5784 Napo to hire the very best people irrespective of their geographical location.
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. B5784 Napo 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. B5784 Napo 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects B5784 Napo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Napo Pharmaceuticals: Pivot to Animal Health (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Napo Pharmaceuticals: Pivot to Animal Health (B) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Napo Pharmaceuticals: Pivot to Animal Health (B), B5784 Napo 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 .
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.
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. B5784 Napo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. B5784 Napo 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents B5784 Napo 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 B5784 Napo business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– B5784 Napo 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.
Environmental challenges
– B5784 Napo 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. B5784 Napo can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for B5784 Napo 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.
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. B5784 Napo needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– B5784 Napo 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.
Regulatory challenges
– B5784 Napo 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.
Increasing wage structure of B5784 Napo
– 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 B5784 Napo.
Weighted SWOT Analysis of Napo Pharmaceuticals: Pivot to Animal Health (B) 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 Napo Pharmaceuticals: Pivot to Animal Health (B) 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 Napo Pharmaceuticals: Pivot to Animal Health (B) 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 Napo Pharmaceuticals: Pivot to Animal Health (B) 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 Napo Pharmaceuticals: Pivot to Animal Health (B) 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 B5784 Napo needs to make to build a sustainable competitive advantage.