Answered: According to the case study in the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

100%

According to the case study in the image,

What does the SWOT Analysis tell us about the competitive position of Pharmcare with the industry as a whole?
How readily do you think executives of Pharmcare identify the strengths and weaknesses of competitors?
Identify the benefits and dangers (other than those identified in the text) of a SWOT Analysis such as that in the illustration.

Transcribed Image Text:ILLUSTRATION 3.6 (b) Competitor SWOT analyses SWOT analysis of Pharmcare Environmental change (opportunities and threats) ILLUSTRATION Increased integration of healthcare Complex and changing buying structures Informed and passionate patients A SWOT analysis explores the relationship between the environmental influences and the strategic capabilities of an organisation compared with its competitors. Healthcare rationing Overall impact Pharmcare -3 46 -3 -2 -2 Struggling to prove cost-effectiveness of new Big global player suffering fall in share price, low research productivity and post-mega merger bureaucracy Well-known brand, a flexible sales force drugs to new regulators of combined with a new healthcare education department creates positive synergy Weak ICT and lack of integration following mergers means sales, research and admin. are all underperforming Declining performance over time worsened after merger Have yet to get into the groove of patient power fuelled by the internet (a) SWOT analysis for Pharmcare healthcare rationing Environmental change (opportunities and threats) Company W Big pharma with patchy response to change, losirng ground in new areas of competition -4 -4 40 14 4 Increased integration of healthcare New recruits in the ICT department have worked cross-functionally to involve patients ike never before Needs to modernise across the whole Focus is on old-style promotional selling rather than helping doctors control costs through drugs Alliances with equipment manufacturers but little Complex and changing buying structures Traditional sales force not helped by Healthcare rationing Informed patients marketing which can be work done across alliance соmpany unaccommodating of national differences to show dual use of drugs and new surgical techniques + Strengths Flexible sales force Economies of scale Strong brand name Healthcare education department +3 +5 +2 +3 +2 +3 -1 +5 12 +6 3 +2 +3 Patients will fight for advances in treatment Organisation X Partnership between a charity managed by people with venture capital experience and top hospital geneticists +3 +2 +10 Could be the basis Potentially able to deliver rapid advances in genetics-based illnesses Able possibly to bypass these with innovative Innovative drugs can help integrate healthcare through enabling patients areas where little recent to stay at home of a new business model for drug discovery - but all to prove as yet +2 +1 +3 -1 cost-effective drugts) +4 +4 16 progress has been made Weaknesses Limited competences in biotechnology and genetics Ever lower R&D productivity Weak ICT competences Over-reliance on leading product -4 -3 -7 Сompany Y Only develops drugs for less common diseases +3 +2 +1 Freephone call centres for sufferers of less +6 -3 -2 -1 -2 -2 -1 Partnering with big pharma allows the development of drugs discovered by big pharma but not economical for them to develop Focus on small market segments so not as vulnerable to overall market structure, but innovative approach might be risky Innovative use of web to show why products still worthwhile developing even for less common illnesses Novel approach can be considered either risky or a winner, or both! -1 -5 -2 -5 -1 -8 -14 -6 common illnesses Company, like patients, is passionate about its mission -3 Environmental impact scores +9 -6 +9 -5 +9 -13 +10 -12 Questions (b) Competitor SWOT analyses 1 What does the SWOT analysis tell us about the competitive position of Pharmcare with the industry as a whole? 2 How readily do you think executives of Pharmcare identify the strengths and weaknesses of competitors? 3 Identify the benefits and dangers (other than those identified in the text) of a SWOT analysis such as that in the illustration.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.