Ono Pharmaceutical Co (OPHLY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
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 inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing commodity prices, geopolitical disruptions, technology disruption, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, etc
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 -
Digital Transformation in industry
- digital transformation varies from industry to industry. For Ono Pharmaceutical Co digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ono Pharmaceutical Co 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.
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.
Successful track record of launching new products
– Ono Pharmaceutical Co has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ono Pharmaceutical Co 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.
High switching costs
– The high switching costs that Ono Pharmaceutical Co 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.
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.
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.
Highly skilled collaborators
– Ono Pharmaceutical Co has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Ono Pharmaceutical Co have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Ono Pharmaceutical Co in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Ono Pharmaceutical Co is one of the most innovative firm in sector.
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.
Analytics focus
– 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.
Learning organization
- Ono Pharmaceutical Co 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 Ono Pharmaceutical Co is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Ono Pharmaceutical Co emphasize – knowledge, initiative, and innovation.
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 -
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.
Slow to strategic competitive environment developments
– As Ono Pharmaceutical Co is one of the leading players in the industry, it 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.
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.
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.
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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Ono Pharmaceutical Co 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.
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.
Slow decision making process
– As mentioned earlier in the report, Ono Pharmaceutical Co has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ono Pharmaceutical Co even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
Capital Spending Reduction
– Even during the low interest decade, Ono Pharmaceutical Co has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 -
Manufacturing automation
– Ono Pharmaceutical Co can use the latest technology developments to improve its manufacturing and designing process in sector. 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ono Pharmaceutical Co 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 Ono Pharmaceutical Co to hire the very best people irrespective of their geographical location.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Ono Pharmaceutical Co can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ono Pharmaceutical Co in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Ono Pharmaceutical Co has opened avenues for new revenue streams for the organization in industry. This can help Ono Pharmaceutical Co to build a more holistic ecosystem for Ono Pharmaceutical Co products in the industry by providing – data insight services, data privacy related products, data based consulting services, 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.
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 -
High dependence on third party suppliers
– Ono Pharmaceutical Co 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.
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.
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, 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.
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 Ono Pharmaceutical Co in the sector and impact the bottomline of the organization.
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.
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. Ono Pharmaceutical Co 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.
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.
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.
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.
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.
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.
Consumer confidence and its impact on Ono Pharmaceutical Co 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 industry and other sectors.
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.