Recovering Abandoned Compounds Through Expanded External IP Licensing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings,
increasing commodity prices, increasing energy prices, 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 -
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.
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.
Learning organization
- Compounds Abandoned 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 Compounds Abandoned is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Recovering Abandoned Compounds Through Expanded External IP Licensing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Low bargaining power of suppliers
– Suppliers of Compounds Abandoned in the sector have low bargaining power. Recovering Abandoned Compounds Through Expanded External IP Licensing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Compounds Abandoned to manage not only supply disruptions but also source products at highly competitive prices.
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.
Effective Research and Development (R&D)
– Compounds Abandoned 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 Recovering Abandoned Compounds Through Expanded External IP Licensing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Operational resilience
– The operational resilience strategy in the Recovering Abandoned Compounds Through Expanded External IP Licensing 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Recovering Abandoned Compounds Through Expanded External IP Licensing firm has clearly differentiated products in the market place. This has enabled Compounds Abandoned to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Compounds Abandoned to invest into research and development (R&D) and innovation.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Recovering Abandoned Compounds Through Expanded External IP Licensing, in the dynamic environment Compounds Abandoned has struggled to respond to the nimble upstart competition. Compounds Abandoned has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Compounds Abandoned is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Recovering Abandoned Compounds Through Expanded External IP Licensing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
High cash cycle compare to competitors
Compounds Abandoned has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Recovering Abandoned Compounds Through Expanded External IP Licensing HBR case study mentions - Compounds Abandoned 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Recovering Abandoned Compounds Through Expanded External IP Licensing, it seems that the employees of Compounds Abandoned 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.
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.
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.
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 -
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Compounds Abandoned 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
– Compounds Abandoned 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.
Building a culture of innovation
– managers at Compounds Abandoned 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.
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.
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.
Loyalty marketing
– Compounds Abandoned 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Compounds Abandoned can use these opportunities to build new business models that can help the communities that Compounds Abandoned operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Compounds Abandoned 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.
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.
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 -
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.
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.
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 .
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 Compounds Abandoned.
Shortening product life cycle
– it is one of the major threat that Compounds Abandoned is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Compounds Abandoned 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.
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.
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.
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.
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.
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 .
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.