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 - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, wage bills are increasing, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
increasing commodity prices, central banks are concerned over increasing inflation, 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 -
Organizational Resilience of Johnson Simponi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Johnson Simponi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Johnson Simponi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Johnson Simponi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
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.
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.
High switching costs
– The high switching costs that Johnson Simponi 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.
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.
Highly skilled collaborators
– Johnson Simponi 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 Remicade/Simponi: Confidential Instructions for Johnson & Johnson HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
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.
Need for greater diversity
– Johnson Simponi 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.
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.
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.
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.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson, it seems that the employees of Johnson Simponi 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.
Low market penetration in new markets
– Outside its home market of Johnson Simponi, firm in the HBR case study Remicade/Simponi: Confidential Instructions for Johnson & Johnson needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Remicade/Simponi: Confidential Instructions for Johnson & Johnson HBR case study mentions - Johnson Simponi 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.
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 -
Building a culture of innovation
– managers at Johnson Simponi 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 Communication segment.
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.
Leveraging digital technologies
– Johnson Simponi can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Johnson Simponi 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 Johnson Simponi 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 Johnson Simponi in the consumer business. Now Johnson Simponi can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Manufacturing automation
– Johnson Simponi can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Johnson Simponi 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, Remicade/Simponi: Confidential Instructions for Johnson & Johnson, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 -
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.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Johnson Simponi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– Johnson Simponi 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. Johnson Simponi can take advantage of this fund but it will also bring new competitors in the Communication industry.
High dependence on third party suppliers
– Johnson Simponi 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Johnson Simponi in the Communication industry. The Communication 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.
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 .
Technology acceleration in Forth Industrial Revolution
– Johnson Simponi has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Johnson Simponi needs to keep up with the evolution of technology in the Communication 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.
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.
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.
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.
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.
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.