Remicade/Simponi: Confidential Instructions for Johnson & Johnson SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Remicade/Simponi: Confidential Instructions for Johnson & Johnson
This two-party negotiation exercise features a real-life dispute between Merck and Johnson & Johnson regarding European distribution rights to two highly lucrative drugs.
Swot Analysis of "Remicade/Simponi: Confidential Instructions for Johnson & Johnson" written by Guhan Subramanian, Rhea Ghosh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Johnson Simponi facing as an external strategic factors. Some of the topics covered in Remicade/Simponi: Confidential Instructions for Johnson & Johnson case study are - Strategic Management Strategies, Growth strategy, Managing uncertainty, Negotiations, Pricing, Risk management and Communication.
Some of the macro environment factors that can be used to understand the Remicade/Simponi: Confidential Instructions for Johnson & Johnson casestudy better are - – talent flight as more people leaving formal jobs, 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, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization,
increasing commodity prices, technology disruption, etc
Introduction to SWOT Analysis of Remicade/Simponi: Confidential Instructions for Johnson & Johnson
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Remicade/Simponi: Confidential Instructions for Johnson & Johnson case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Johnson Simponi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Johnson Simponi 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson can be done for the following purposes –
1. Strategic planning using facts provided in Remicade/Simponi: Confidential Instructions for Johnson & Johnson case study
2. Improving business portfolio management of Johnson Simponi
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Johnson Simponi
Strengths Remicade/Simponi: Confidential Instructions for Johnson & Johnson | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Johnson Simponi in Remicade/Simponi: Confidential Instructions for Johnson & Johnson Harvard Business Review case study are -
Learning organization
- Johnson Simponi 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 Johnson Simponi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Remicade/Simponi: Confidential Instructions for Johnson & Johnson Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Johnson Simponi is present in almost all the verticals within the industry. This has provided firm in Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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.
Operational resilience
– The operational resilience strategy in the Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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.
Cross disciplinary teams
– Horizontal connected teams at the Johnson Simponi 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.
Successful track record of launching new products
– Johnson Simponi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Johnson Simponi 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
– Johnson Simponi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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.
Low bargaining power of suppliers
– Suppliers of Johnson Simponi in the sector have low bargaining power. Remicade/Simponi: Confidential Instructions for Johnson & Johnson has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Johnson Simponi to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Communication field
– Johnson Simponi 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 Johnson Simponi in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Johnson Simponi is one of the most innovative firm in sector. Manager in Remicade/Simponi: Confidential Instructions for Johnson & Johnson Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Johnson Simponi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Johnson Simponi 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.
Analytics focus
– Johnson Simponi 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 Guhan Subramanian, Rhea Ghosh 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.
Superior customer experience
– The customer experience strategy of Johnson Simponi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Remicade/Simponi: Confidential Instructions for Johnson & Johnson | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Remicade/Simponi: Confidential Instructions for Johnson & Johnson are -
Skills based hiring
– The stress on hiring functional specialists at Johnson Simponi 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Johnson Simponi 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson, is just above the industry average. Johnson Simponi 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 star products
– The top 2 products and services of the firm as mentioned in the Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Johnson Simponi has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Johnson Simponi is dominated by functional specialists. It is not different from other players in the Communication segment. Johnson Simponi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Johnson Simponi to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Johnson Simponi 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 bargaining power of channel partners
– Because of the regulatory requirements, Guhan Subramanian, Rhea Ghosh suggests that, Johnson Simponi is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Aligning sales with marketing
– It come across in the case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson can leverage the sales team experience to cultivate customer relationships as Johnson Simponi is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Johnson Simponi 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson, in the dynamic environment Johnson Simponi has struggled to respond to the nimble upstart competition. Johnson Simponi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson, it seems that company is thinking about the frontier risks that can impact Communication strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Remicade/Simponi: Confidential Instructions for Johnson & Johnson | 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson are -
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. Johnson Simponi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Johnson Simponi can develop new processes and procedures in Communication 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.
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 Johnson Simponi in the consumer business. Now Johnson Simponi can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Johnson Simponi in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Johnson Simponi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Johnson Simponi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Johnson Simponi has opened avenues for new revenue streams for the organization in the industry. This can help Johnson Simponi to build a more holistic ecosystem as suggested in the Remicade/Simponi: Confidential Instructions for Johnson & Johnson case study. Johnson Simponi can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Johnson Simponi can use these opportunities to build new business models that can help the communities that Johnson Simponi operates in. Secondly it can use opportunities from government spending in Communication sector.
Better consumer reach
– The expansion of the 5G network will help Johnson Simponi to increase its market reach. Johnson Simponi 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Johnson Simponi 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. Johnson Simponi 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.
Using analytics as competitive advantage
– Johnson Simponi 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Johnson Simponi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Johnson Simponi 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Johnson Simponi is facing challenges because of the dominance of functional experts in the organization. Remicade/Simponi: Confidential Instructions for Johnson & Johnson case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Remicade/Simponi: Confidential Instructions for Johnson & Johnson External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson are -
Regulatory challenges
– Johnson Simponi 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 Communication industry regulations.
Increasing wage structure of Johnson Simponi
– 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 Johnson Simponi.
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 Johnson Simponi business can come under increasing regulations regarding data privacy, data security, etc.
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 Johnson Simponi.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Johnson Simponi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Johnson Simponi 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson .
Shortening product life cycle
– it is one of the major threat that Johnson Simponi is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Johnson Simponi in the Communication sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Johnson Simponi 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.
Consumer confidence and its impact on Johnson Simponi demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson, Johnson Simponi may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Weighted SWOT Analysis of Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson 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 Johnson Simponi needs to make to build a sustainable competitive advantage.
