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SWOT Analysis. Business Basics

Every company at some point in development requires an assessment of its future strategies. Strategic management is a type of planning that allows developing a structured approach to competition for resources and customers (Segal-Horn, 2004). Every strategic step should be assessed based on profits, customer satisfaction, and cost reduction (Burba & Gray, 2014). Moreover, to make reasonable choices, a company needs to evaluate strengths, weaknesses, opportunities, and threats (SWOT) for its business to identify future directions (Trevor, 2018). Although a SWOT analysis can be easily performed, more than 30% of the companies do not use it (“Are CCOs using the right metrics,” 2013). Novartis is a successful pharmaceutical company, but the global market’s dynamic nature requires constant strategy assessment. The SWOT analysis of Novartis revealed such strengths as location and innovative approach, weaknesses as the history of lawsuits, opportunities as new technologies and increased demand, and threats as international competitors.

Novartis’ success can be attributed to effective strategic management, which involves evaluating robust and weak sides. The strengths of Novartis include location and focus on innovations. Its initial location was favorable because of the presence of developed chemical and pharmacologic companies in Switzerland, which simplified the search of experts in the field (Jones, 2019). Novartis’ weakness is that its reputation was affected by several lawsuits related to patenting and data accuracy (Jones, 2019). Continuous evaluation of the strong and weak sides can help Novartis to improve.

As a successful company, Novartis possesses growth options and has threats to its business. This company’s opportunities include accelerating biotechnology development rates and increasing demand for drugs and vaccines, but other companies also have the same options. Although benign competition is profitable, an excessive rivalry is often destructive for the industry (Porter, 2008). Therefore, Novartis needs to monitor its competitors’ strategies, and it should focus more on investing in research and innovations to widen its brand portfolio and reduce costs.

Overall, SWOT analysis is an essential part of strategic management. SWOT analysis of Novartis pharmacologic company identified that it has a favorable location and innovative policies. Still, the company should work on improving its reputation in the patent acquisition and accurate data representation. The opportunities for this company include substantial growth in product demand and biotechnology development. Finally, Novartis should monitor such threats as competitors’ strategies and adjust its management accordingly.


Are CCOs using the right metrics? (2013). Compliance Week, 12–13. Web.

Burba, D., & Gray, S. (2014). Sustained momentum. PM Network, 28(5), 40–46. Web.

Jones, L. (2019). Marketing benchmark series: Novartis pharmaceuticals. Orientation Marketing. Web.

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78.

Segal-Horn, S. (2004). The modern roots of strategic management. European Business Journal, 16(4), 133–142. Retrieved April 14, 2021 from

Trevor, W. (2018). Business Basics: Using a SWOT analysis. Excelsior College. Web.

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