Pulmocit (B): Negotiating Pharmaceutical Products with the Government SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pulmocit (B): Negotiating Pharmaceutical Products with the Government
This is a two-party negotiation between a pharmaceutical company and a government agency to decide if a new medication will be put on the reimbursement list. The pharmaceutical company has a valuable new product, the government has semi-monopolistic power over whether (or not) drugs are listed. The role-play allows participants to negotiate given the inherent value-creation limitations of the setting.
Swot Analysis of "Pulmocit (B): Negotiating Pharmaceutical Products with the Government" written by Horacio Falcao, Rodrigo Gouveia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pharmaceutical Pulmocit facing as an external strategic factors. Some of the topics covered in Pulmocit (B): Negotiating Pharmaceutical Products with the Government case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Pulmocit (B): Negotiating Pharmaceutical Products with the Government casestudy better are - – technology disruption, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing transportation and logistics costs,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of Pulmocit (B): Negotiating Pharmaceutical Products with the Government
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pulmocit (B): Negotiating Pharmaceutical Products with the Government case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pharmaceutical Pulmocit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pharmaceutical Pulmocit 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government can be done for the following purposes –
1. Strategic planning using facts provided in Pulmocit (B): Negotiating Pharmaceutical Products with the Government case study
2. Improving business portfolio management of Pharmaceutical Pulmocit
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 Pharmaceutical Pulmocit
Strengths Pulmocit (B): Negotiating Pharmaceutical Products with the Government | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pharmaceutical Pulmocit in Pulmocit (B): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study are -
High brand equity
– Pharmaceutical Pulmocit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pharmaceutical Pulmocit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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.
Training and development
– Pharmaceutical Pulmocit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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.
Ability to recruit top talent
– Pharmaceutical Pulmocit is one of the leading recruiters in the industry. Managers in the Pulmocit (B): Negotiating Pharmaceutical Products with the Government are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Pharmaceutical Pulmocit 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 Pharmaceutical Pulmocit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Pharmaceutical Pulmocit 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 Pharmaceutical Pulmocit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pulmocit (B): Negotiating Pharmaceutical Products with the Government Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Pharmaceutical Pulmocit 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
– Pharmaceutical Pulmocit 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 Horacio Falcao, Rodrigo Gouveia 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.
Low bargaining power of suppliers
– Suppliers of Pharmaceutical Pulmocit in the sector have low bargaining power. Pulmocit (B): Negotiating Pharmaceutical Products with the Government has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pharmaceutical Pulmocit to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– Pulmocit (B): Negotiating Pharmaceutical Products with the Government firm has clearly differentiated products in the market place. This has enabled Pharmaceutical Pulmocit to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Pharmaceutical Pulmocit to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Pharmaceutical Pulmocit 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Pharmaceutical Pulmocit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pharmaceutical Pulmocit 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.
Weaknesses Pulmocit (B): Negotiating Pharmaceutical Products with the Government | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pulmocit (B): Negotiating Pharmaceutical Products with the Government are -
Interest costs
– Compare to the competition, Pharmaceutical Pulmocit 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.
Need for greater diversity
– Pharmaceutical Pulmocit 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pulmocit (B): Negotiating Pharmaceutical Products with the Government, is just above the industry average. Pharmaceutical Pulmocit 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.
Slow to strategic competitive environment developments
– As Pulmocit (B): Negotiating Pharmaceutical Products with the Government HBR case study mentions - Pharmaceutical Pulmocit 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.
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 Pharmaceutical Pulmocit supply chain. Even after few cautionary changes mentioned in the HBR case study - Pulmocit (B): Negotiating Pharmaceutical Products with the Government, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pharmaceutical Pulmocit vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Pharmaceutical Pulmocit 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.
Skills based hiring
– The stress on hiring functional specialists at Pharmaceutical Pulmocit 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pulmocit (B): Negotiating Pharmaceutical Products with the Government, it seems that the employees of Pharmaceutical Pulmocit 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.
Products dominated business model
– Even though Pharmaceutical Pulmocit 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 - Pulmocit (B): Negotiating Pharmaceutical Products with the Government should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pharmaceutical Pulmocit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pulmocit (B): Negotiating Pharmaceutical Products with the Government can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pharmaceutical Pulmocit has relatively successful track record of launching new products.
Opportunities Pulmocit (B): Negotiating Pharmaceutical Products with the Government | 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government are -
Using analytics as competitive advantage
– Pharmaceutical Pulmocit 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pharmaceutical Pulmocit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Pharmaceutical Pulmocit 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pharmaceutical Pulmocit 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.
Developing new processes and practices
– Pharmaceutical Pulmocit 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.
Buying journey improvements
– Pharmaceutical Pulmocit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pharmaceutical Pulmocit can use these opportunities to build new business models that can help the communities that Pharmaceutical Pulmocit operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Pharmaceutical Pulmocit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Pharmaceutical Pulmocit in the consumer business. Now Pharmaceutical Pulmocit can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Pharmaceutical Pulmocit 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 Pharmaceutical Pulmocit 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.
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 Pharmaceutical Pulmocit 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.
Learning at scale
– Online learning technologies has now opened space for Pharmaceutical Pulmocit 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.
Loyalty marketing
– Pharmaceutical Pulmocit 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.
Threats Pulmocit (B): Negotiating Pharmaceutical Products with the Government External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pulmocit (B): Negotiating Pharmaceutical Products with the Government are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pharmaceutical Pulmocit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Pharmaceutical Pulmocit 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 acceleration in Forth Industrial Revolution
– Pharmaceutical Pulmocit has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Pharmaceutical Pulmocit needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Pharmaceutical Pulmocit 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 Pharmaceutical Pulmocit 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.
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 wage structure of Pharmaceutical Pulmocit
– 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 Pharmaceutical Pulmocit.
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 Pharmaceutical Pulmocit in the Leadership & Managing People 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 Pharmaceutical Pulmocit.
Environmental challenges
– Pharmaceutical Pulmocit 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. Pharmaceutical Pulmocit can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– Pharmaceutical Pulmocit 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pharmaceutical Pulmocit 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government .
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. Pharmaceutical Pulmocit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pulmocit (B): Negotiating Pharmaceutical Products with the Government 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 Pharmaceutical Pulmocit needs to make to build a sustainable competitive advantage.