OUTLOOK THERAPEUTICS (OTLK) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for OUTLOOK THERAPEUTICS (United States)

Based on various researches at Oak Spring University , OUTLOOK THERAPEUTICS is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing energy prices, talent flight as more people leaving formal jobs, etc

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Introduction to SWOT Analysis of OUTLOOK THERAPEUTICS

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that OUTLOOK THERAPEUTICS can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the OUTLOOK THERAPEUTICS, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which OUTLOOK THERAPEUTICS 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of OUTLOOK THERAPEUTICS can be done for the following purposes –
1. Strategic planning of OUTLOOK THERAPEUTICS
2. Improving business portfolio management of OUTLOOK THERAPEUTICS
3. Assessing feasibility of the new initiative in United States
4. Making a Biotechnology & Drugs sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of OUTLOOK THERAPEUTICS

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Strengths of OUTLOOK THERAPEUTICS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of OUTLOOK THERAPEUTICS are -

High switching costs

– The high switching costs that OUTLOOK THERAPEUTICS 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.

Organizational Resilience of OUTLOOK THERAPEUTICS

– The covid-19 pandemic has put organizational resilience at the centre of everthing OUTLOOK THERAPEUTICS does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Operational resilience

– The operational resilience strategy of OUTLOOK THERAPEUTICS comprises – understanding the underlying the factors in the Biotechnology & Drugs 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.

Ability to lead change in Biotechnology & Drugs

– OUTLOOK THERAPEUTICS is one of the leading players in the Biotechnology & Drugs industry in United States. Over the years it has not only transformed the business landscape in the Biotechnology & Drugs industry in United States but also across the existing markets. The ability to lead change has enabled OUTLOOK THERAPEUTICS in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Training and development

– OUTLOOK THERAPEUTICS has one of the best training and development program in Healthcare 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.

Sustainable margins compare to other players in Biotechnology & Drugs industry

– OUTLOOK THERAPEUTICS has clearly differentiated products in the market place. This has enabled OUTLOOK THERAPEUTICS to fetch slight price premium compare to the competitors in the Biotechnology & Drugs industry. The sustainable margins have also helped OUTLOOK THERAPEUTICS to invest into research and development (R&D) and innovation.

Highly skilled collaborators

– OUTLOOK THERAPEUTICS has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Biotechnology & Drugs industry. Secondly the value chain collaborators of OUTLOOK THERAPEUTICS have helped the firm to develop new products and bring them quickly to the marketplace.

Innovation driven organization

– OUTLOOK THERAPEUTICS is one of the most innovative firm in Biotechnology & Drugs sector.

Superior customer experience

– The customer experience strategy of OUTLOOK THERAPEUTICS in Biotechnology & Drugs industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– OUTLOOK THERAPEUTICS is present in almost all the verticals within the Biotechnology & Drugs industry. This has provided OUTLOOK THERAPEUTICS 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.

Successful track record of launching new products

– OUTLOOK THERAPEUTICS has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. OUTLOOK THERAPEUTICS 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.

Digital Transformation in Biotechnology & Drugs industry

- digital transformation varies from industry to industry. For OUTLOOK THERAPEUTICS digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. OUTLOOK THERAPEUTICS 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.

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Weaknesses of OUTLOOK THERAPEUTICS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of OUTLOOK THERAPEUTICS are -

High operating costs

– Compare to the competitors, OUTLOOK THERAPEUTICS has high operating costs in the Biotechnology & Drugs industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract OUTLOOK THERAPEUTICS lucrative customers.

Compensation and incentives

– The revenue per employee of OUTLOOK THERAPEUTICS is just above the Biotechnology & Drugs 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.

No frontier risks strategy

– From the 10K / annual statement of OUTLOOK THERAPEUTICS, it seems that company is thinking out the frontier risks that can impact Biotechnology & Drugs industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Ability to respond to the competition

– As the decision making is very deliberative at OUTLOOK THERAPEUTICS, in the dynamic environment of Biotechnology & Drugs industry it has struggled to respond to the nimble upstart competition. OUTLOOK THERAPEUTICS has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Workers concerns about automation

– As automation is fast increasing in the Biotechnology & Drugs industry, OUTLOOK THERAPEUTICS 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.

Skills based hiring in Biotechnology & Drugs industry

– The stress on hiring functional specialists at OUTLOOK THERAPEUTICS 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.

Capital Spending Reduction

– Even during the low interest decade, OUTLOOK THERAPEUTICS 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 Biotechnology & Drugs industry using digital technology.

Increasing silos among functional specialists

– The organizational structure of OUTLOOK THERAPEUTICS is dominated by functional specialists. It is not different from other players in the Biotechnology & Drugs industry, but OUTLOOK THERAPEUTICS needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help OUTLOOK THERAPEUTICS to focus more on services in the Biotechnology & Drugs industry rather than just following the product oriented approach.

Lack of clear differentiation of OUTLOOK THERAPEUTICS products

– To increase the profitability and margins on the products, OUTLOOK THERAPEUTICS needs to provide more differentiated products than what it is currently offering in the marketplace.

Slow to strategic competitive environment developments

– As OUTLOOK THERAPEUTICS is one of the leading players in the Biotechnology & Drugs industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Biotechnology & Drugs industry in last five years.

Need for greater diversity

– OUTLOOK THERAPEUTICS 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.

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OUTLOOK THERAPEUTICS Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of OUTLOOK THERAPEUTICS are -

Better consumer reach

– The expansion of the 5G network will help OUTLOOK THERAPEUTICS to increase its market reach. OUTLOOK THERAPEUTICS 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Biotechnology & Drugs industry, but it has also influenced the consumer preferences. OUTLOOK THERAPEUTICS can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Creating value in data economy

– The success of analytics program of OUTLOOK THERAPEUTICS has opened avenues for new revenue streams for the organization in Biotechnology & Drugs industry. This can help OUTLOOK THERAPEUTICS to build a more holistic ecosystem for OUTLOOK THERAPEUTICS products in the Biotechnology & Drugs industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 OUTLOOK THERAPEUTICS 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects OUTLOOK THERAPEUTICS 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

– OUTLOOK THERAPEUTICS can use the latest technology developments to improve its manufacturing and designing process in Biotechnology & Drugs 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, OUTLOOK THERAPEUTICS is facing challenges because of the dominance of functional experts in the organization. OUTLOOK THERAPEUTICS can utilize new technology in the field of Biotechnology & Drugs industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Using analytics as competitive advantage

– OUTLOOK THERAPEUTICS has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Biotechnology & Drugs sector. This continuous investment in analytics has enabled OUTLOOK THERAPEUTICS to build a competitive advantage using analytics. The analytics driven competitive advantage can help OUTLOOK THERAPEUTICS to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Lowering marketing communication costs

– 5G expansion will open new opportunities for OUTLOOK THERAPEUTICS in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Biotechnology & Drugs industry, and it will provide faster access to the consumers.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Low interest rates

– Even though inflation is raising its head in most developed economies, OUTLOOK THERAPEUTICS 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Biotechnology & Drugs industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. OUTLOOK THERAPEUTICS can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. OUTLOOK THERAPEUTICS can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Building a culture of innovation

– managers at OUTLOOK THERAPEUTICS 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 Biotechnology & Drugs industry.

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Threats OUTLOOK THERAPEUTICS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of OUTLOOK THERAPEUTICS are -

High dependence on third party suppliers

– OUTLOOK THERAPEUTICS 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.

Technology acceleration in Forth Industrial Revolution

– OUTLOOK THERAPEUTICS has witnessed rapid integration of technology during Covid-19 in the Biotechnology & Drugs industry. As one of the leading players in the industry, OUTLOOK THERAPEUTICS needs to keep up with the evolution of technology in the Biotechnology & Drugs 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.

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.

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 OUTLOOK THERAPEUTICS.

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 OUTLOOK THERAPEUTICS in the Biotechnology & Drugs sector and impact the bottomline of the organization.

Increasing wage structure of OUTLOOK THERAPEUTICS

– 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 OUTLOOK THERAPEUTICS.

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 OUTLOOK THERAPEUTICS business can come under increasing regulations regarding data privacy, data security, etc.

Stagnating economy with rate increase

– OUTLOOK THERAPEUTICS 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 Biotechnology & Drugs industry.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for OUTLOOK THERAPEUTICS in Biotechnology & Drugs industry. The Biotechnology & Drugs 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.

Easy access to finance

– Easy access to finance in Biotechnology & Drugs industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. OUTLOOK THERAPEUTICS can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS prominent markets.

Consumer confidence and its impact on OUTLOOK THERAPEUTICS 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 Biotechnology & Drugs industry and other sectors.

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. OUTLOOK THERAPEUTICS 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.

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Weighted SWOT Analysis of OUTLOOK THERAPEUTICS Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS 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 OUTLOOK THERAPEUTICS needs to make to build a sustainable competitive advantage.

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