Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Ono Pharmaceutical Co (United States)
Based on various researches at Oak Spring University , Ono Pharmaceutical Co is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
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Introduction to SWOT Analysis of Ono Pharmaceutical Co
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Ono Pharmaceutical Co can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ono Pharmaceutical Co, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ono Pharmaceutical Co 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 Ono Pharmaceutical Co can be done for the following purposes –
1. Strategic planning of Ono Pharmaceutical Co
2. Improving business portfolio management of Ono Pharmaceutical Co
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ono Pharmaceutical Co
Strengths of Ono Pharmaceutical Co | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ono Pharmaceutical Co are -
– The operational resilience strategy of Ono Pharmaceutical Co 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.
Strong track record of project management in the industry
– Ono Pharmaceutical Co 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
– Ono Pharmaceutical Co is one of the most innovative firm in sector.
Ability to lead change in
– Ono Pharmaceutical Co is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Ono Pharmaceutical Co in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in industry
– Ono Pharmaceutical Co has clearly differentiated products in the market place. This has enabled Ono Pharmaceutical Co to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Ono Pharmaceutical Co to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Ono Pharmaceutical Co has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Ono Pharmaceutical Co staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Ono Pharmaceutical Co has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ono Pharmaceutical Co to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
– Ono Pharmaceutical Co 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 of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Ono Pharmaceutical Co has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – 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
– Ono Pharmaceutical Co is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Ono Pharmaceutical Co 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.
Low bargaining power of suppliers
– Suppliers of Ono Pharmaceutical Co in the sector have low bargaining power. Ono Pharmaceutical Co has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ono Pharmaceutical Co to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Ono Pharmaceutical Co | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ono Pharmaceutical Co are -
Workers concerns about automation
– As automation is fast increasing in the industry, Ono Pharmaceutical Co 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.
Low market penetration in new markets
– Outside its home market of United States, Ono Pharmaceutical Co needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Ono Pharmaceutical Co is dominated by functional specialists. It is not different from other players in the industry, but Ono Pharmaceutical Co needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ono Pharmaceutical Co to focus more on services in the industry rather than just following the product oriented approach.
Aligning sales with marketing
– From the outside it seems that Ono Pharmaceutical Co 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 at Ono Pharmaceutical Co can leverage the sales team experience to cultivate customer relationships as Ono Pharmaceutical Co is planning to shift buying processes online.
Need for greater diversity
– Ono Pharmaceutical Co 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.
Employees’ less understanding of Ono Pharmaceutical Co strategy
– From the outside it seems that the employees of Ono Pharmaceutical Co 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.
Ability to respond to the competition
– As the decision making is very deliberative at Ono Pharmaceutical Co, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Ono Pharmaceutical Co has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Ono Pharmaceutical Co supply chain. Even after few cautionary changes, Ono Pharmaceutical Co is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ono Pharmaceutical Co vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of Ono Pharmaceutical Co is just above the industry average. It 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.
Lack of clear differentiation of Ono Pharmaceutical Co products
– To increase the profitability and margins on the products, Ono Pharmaceutical Co needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on Ono Pharmaceutical Co ‘s star products
– The top 2 products and services of Ono Pharmaceutical Co still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Ono Pharmaceutical Co has relatively successful track record of launching new products.
Ono Pharmaceutical Co Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Ono Pharmaceutical Co are -
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 Ono Pharmaceutical Co 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, Ono Pharmaceutical Co 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.
Better consumer reach
– The expansion of the 5G network will help Ono Pharmaceutical Co to increase its market reach. Ono Pharmaceutical Co 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ono Pharmaceutical Co 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 Ono Pharmaceutical Co to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Ono Pharmaceutical Co in the industry. Now Ono Pharmaceutical Co can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ono Pharmaceutical Co is facing challenges because of the dominance of functional experts in the organization. Ono Pharmaceutical Co can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
– Ono Pharmaceutical Co 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.
Leveraging digital technologies
– Ono Pharmaceutical Co 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.
Developing new processes and practices
– Ono Pharmaceutical Co can develop new processes and procedures in 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ono Pharmaceutical Co can use these opportunities to build new business models that can help the communities that Ono Pharmaceutical Co operates in. Secondly it can use opportunities from government spending in sector.
Using analytics as competitive advantage
– Ono Pharmaceutical Co has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Ono Pharmaceutical Co to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ono Pharmaceutical Co to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ono Pharmaceutical Co can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Ono Pharmaceutical Co 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 industry.
Threats Ono Pharmaceutical Co External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Ono Pharmaceutical Co are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Ono Pharmaceutical Co may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
– Ono Pharmaceutical Co 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 industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Ono Pharmaceutical Co with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Ono Pharmaceutical Co needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ono Pharmaceutical Co 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 Ono Pharmaceutical Co prominent markets.
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 Ono Pharmaceutical Co business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Ono Pharmaceutical Co has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Ono Pharmaceutical Co needs to keep up with the evolution of technology in the 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.
Stagnating economy with rate increase
– Ono Pharmaceutical Co 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 industry.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ono Pharmaceutical Co 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 Ono Pharmaceutical Co
– 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 Ono Pharmaceutical Co.
Shortening product life cycle
– it is one of the major threat that Ono Pharmaceutical Co is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Ono Pharmaceutical Co.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ono Pharmaceutical Co in industry. The 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.
Weighted SWOT Analysis of Ono Pharmaceutical Co Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Ono Pharmaceutical Co 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 Ono Pharmaceutical Co 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 Ono Pharmaceutical Co 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 Ono Pharmaceutical Co 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 Ono Pharmaceutical Co needs to make to build a sustainable competitive advantage.