Recovering Abandoned Compounds Through Expanded External IP Licensing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
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Case Study SWOT Analysis Solution
Case Study Description of Recovering Abandoned Compounds Through Expanded External IP Licensing
Pharmaceutical drug development costs have risen rapidly over the past twenty years. Yet, the number of new molecular entities being approved has not increased. Most of these costs can be traced to work on compounds that are abandoned before getting to market. As pharmaceutical companies scale back their work in light of deteriorating R&D productivity, significant unmet medical needs remain unaddressed. More extensive external licensing of the IP associated with abandoned compounds could spur recovery and/or redeployment of abandoned compounds to address at least some of these unmetmedical needs. The example of Cubicin is offered as an illustration of thesemore open approaches. This article inductively develops a simple framework to guide companies in the decision of whether and when to license out unused internal IP.
Swot Analysis of "Recovering Abandoned Compounds Through Expanded External IP Licensing" written by Henry Chesbrough, Eric L. Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Compounds Abandoned facing as an external strategic factors. Some of the topics covered in Recovering Abandoned Compounds Through Expanded External IP Licensing case study are - Strategic Management Strategies, Intellectual property, Productivity, Research & development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Recovering Abandoned Compounds Through Expanded External IP Licensing casestudy better are - – there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing energy prices, supply chains are disrupted by pandemic ,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of Recovering Abandoned Compounds Through Expanded External IP Licensing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Recovering Abandoned Compounds Through Expanded External IP Licensing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Compounds Abandoned, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing can be done for the following purposes –
1. Strategic planning using facts provided in Recovering Abandoned Compounds Through Expanded External IP Licensing case study
2. Improving business portfolio management of Compounds Abandoned
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 Compounds Abandoned
Strengths Recovering Abandoned Compounds Through Expanded External IP Licensing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Compounds Abandoned in Recovering Abandoned Compounds Through Expanded External IP Licensing Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Compounds Abandoned digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Compounds Abandoned 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.
Cross disciplinary teams
– Horizontal connected teams at the Compounds Abandoned 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.
High brand equity
– Compounds Abandoned has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Compounds Abandoned to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Compounds Abandoned is present in almost all the verticals within the industry. This has provided firm in Recovering Abandoned Compounds Through Expanded External IP Licensing 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.
Strong track record of project management
– Compounds Abandoned is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Compounds Abandoned is one of the most innovative firm in sector. Manager in Recovering Abandoned Compounds Through Expanded External IP Licensing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Compounds Abandoned 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.
Successful track record of launching new products
– Compounds Abandoned has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Compounds Abandoned 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
– Compounds Abandoned has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Recovering Abandoned Compounds Through Expanded External IP Licensing 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.
Organizational Resilience of Compounds Abandoned
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Compounds Abandoned does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Compounds Abandoned 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 Compounds Abandoned in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Recovering Abandoned Compounds Through Expanded External IP Licensing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Recovering Abandoned Compounds Through Expanded External IP Licensing are -
Workers concerns about automation
– As automation is fast increasing in the segment, Compounds Abandoned 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 operating costs
– Compare to the competitors, firm in the HBR case study Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Compounds Abandoned 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Compounds Abandoned has relatively successful track record of launching new products.
Products dominated business model
– Even though Compounds Abandoned 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 - Recovering Abandoned Compounds Through Expanded External IP Licensing should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry Chesbrough, Eric L. Chen suggests that, Compounds Abandoned 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Recovering Abandoned Compounds Through Expanded External IP Licensing, is just above the industry average. Compounds Abandoned 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.
Need for greater diversity
– Compounds Abandoned 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.
Skills based hiring
– The stress on hiring functional specialists at Compounds Abandoned 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.
No frontier risks strategy
– After analyzing the HBR case study Recovering Abandoned Compounds Through Expanded External IP Licensing, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
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 Compounds Abandoned supply chain. Even after few cautionary changes mentioned in the HBR case study - Recovering Abandoned Compounds Through Expanded External IP Licensing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Compounds Abandoned vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Compounds Abandoned products
– To increase the profitability and margins on the products, Compounds Abandoned needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Recovering Abandoned Compounds Through Expanded External IP Licensing | 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 Recovering Abandoned Compounds Through Expanded External IP Licensing are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Compounds Abandoned 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 Compounds Abandoned to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Compounds Abandoned 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.
Creating value in data economy
– The success of analytics program of Compounds Abandoned has opened avenues for new revenue streams for the organization in the industry. This can help Compounds Abandoned to build a more holistic ecosystem as suggested in the Recovering Abandoned Compounds Through Expanded External IP Licensing case study. Compounds Abandoned can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Compounds Abandoned to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Compounds Abandoned can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Recovering Abandoned Compounds Through Expanded External IP Licensing suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Compounds Abandoned to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Compounds Abandoned 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, Recovering Abandoned Compounds Through Expanded External IP Licensing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Compounds Abandoned 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, Compounds Abandoned is facing challenges because of the dominance of functional experts in the organization. Recovering Abandoned Compounds Through Expanded External IP Licensing 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.
Better consumer reach
– The expansion of the 5G network will help Compounds Abandoned to increase its market reach. Compounds Abandoned 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.
Leveraging digital technologies
– Compounds Abandoned 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Compounds Abandoned 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.
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 Compounds Abandoned in the consumer business. Now Compounds Abandoned can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Recovering Abandoned Compounds Through Expanded External IP Licensing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Recovering Abandoned Compounds Through Expanded External IP Licensing are -
Stagnating economy with rate increase
– Compounds Abandoned 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.
Regulatory challenges
– Compounds Abandoned 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.
High dependence on third party suppliers
– Compounds Abandoned 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.
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. Compounds Abandoned 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.
Environmental challenges
– Compounds Abandoned 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. Compounds Abandoned can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Compounds Abandoned 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing .
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 Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing, Compounds Abandoned 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 .
Increasing wage structure of Compounds Abandoned
– 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 Compounds Abandoned.
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 Compounds Abandoned in the Leadership & Managing People sector and impact the bottomline of the organization.
Consumer confidence and its impact on Compounds Abandoned 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.
Weighted SWOT Analysis of Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Recovering Abandoned Compounds Through Expanded External IP Licensing 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 Compounds Abandoned needs to make to build a sustainable competitive advantage.