SWOT analysis is a strategic planning tool that can be used by Adamas Pharmaceuticals, Inc. managers to do a situational analysis of the firm . It is a useful technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Adamas Pharmaceuticals, Inc. is facing in its current business environment.
The Adamas Pharmaceuticals, Inc. is one of the leading firms in its industry. Adamas Pharmaceuticals, Inc. maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Adamas Pharmaceuticals, Inc. to develop four types of strategies:
The primary purpose of SWOT matrix is to identify the strategies that a company can utilize to exploit external opportunities, counter threats, and build on & protect Adamas Pharmaceuticals, Inc. strengths, and eradicate its weaknesses.
As one of the leading companies in its industry, Adamas Pharmaceuticals, Inc. has numerous strengths that help it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Adamas Pharmaceuticals, Inc. are –
Strong Brand Portfolio – Over the years Adamas Pharmaceuticals, Inc. has invested in building a strong brand portfolio. The SWOT analysis of Adamas Pharmaceuticals, Inc. just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
Strong distribution network – Over the years Adamas Pharmaceuticals, Inc. has built a reliable distribution network that can reach majority of its potential market.
Good Returns on Capital Expenditure – Adamas Pharmaceuticals, Inc. is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
Weakness are the areas where Adamas Pharmaceuticals, Inc. can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Investment in Research and Development is below the fastest growing players in the industry. Even though Adamas Pharmaceuticals, Inc. is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
Limited success outside core business – Even though Adamas Pharmaceuticals, Inc. is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
The profitability ratio and Net Contribution % of Adamas Pharmaceuticals, Inc. are below the industry average.
Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Adamas Pharmaceuticals, Inc. needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
New trends in the consumer behavior can open up new market for the Adamas Pharmaceuticals, Inc. . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Adamas Pharmaceuticals, Inc. to increase its profitability.
The new technology provides an opportunity to Adamas Pharmaceuticals, Inc. to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
New environmental policies – The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Adamas Pharmaceuticals, Inc. to drive home its advantage in new technology and gain market share in the new product category.
Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for Adamas Pharmaceuticals, Inc. in other product categories.
Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Adamas Pharmaceuticals, Inc..
Decreasing cost of transportation because of lower shipping prices can also bring down the cost of Adamas Pharmaceuticals, Inc.’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.
New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for Adamas Pharmaceuticals, Inc.. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Adamas Pharmaceuticals, Inc.
Liability laws in different countries are different and Adamas Pharmaceuticals, Inc. may be exposed to various liability claims given change in policies in those markets.
The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Adamas Pharmaceuticals, Inc.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Adamas Pharmaceuticals, Inc. managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.