Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing
Siemens Medical Solutions (SMS) offered innovative products and systems, clinical solutions, and services for medical professionals. Its latest project, transforming a hospital to digital records and processes, was experiencing serious delays that had damaged the relationship with the client. Management believed the underlying problem was that SMS was not using the correct approach to organization and processes for solutions marketing. The executives in charge of on-time completion and successful delivery of the project must now agree on a different recommendation.
Authors :: Mohanbir Sawhney, Shankar Balakrishnan, Maryam Balali, Brit Gould
Swot Analysis of "Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing" written by Mohanbir Sawhney, Shankar Balakrishnan, Maryam Balali, Brit Gould includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Solutions Sms facing as an external strategic factors. Some of the topics covered in Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing case study are - Strategic Management Strategies, International business, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing casestudy better are - – wage bills are increasing, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Solutions Sms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Solutions Sms 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 Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing can be done for the following purposes –
1. Strategic planning using facts provided in Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing case study
2. Improving business portfolio management of Solutions Sms
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Solutions Sms
Strengths Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Solutions Sms in Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing Harvard Business Review case study are -
High brand equity
– Solutions Sms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Solutions Sms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Solutions Sms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Solutions Sms in the sector have low bargaining power. Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Solutions Sms to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Solutions Sms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Solutions Sms 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.
Sustainable margins compare to other players in Organizational Development industry
– Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing firm has clearly differentiated products in the market place. This has enabled Solutions Sms to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Solutions Sms to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Solutions Sms is one of the leading recruiters in the industry. Managers in the Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Solutions Sms is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Solutions Sms has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Organizational Development field
– Solutions Sms is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Solutions Sms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
Diverse revenue streams
– Solutions Sms is present in almost all the verticals within the industry. This has provided firm in Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing case study 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Solutions Sms digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Solutions Sms 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.
Weaknesses Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing, in the dynamic environment Solutions Sms has struggled to respond to the nimble upstart competition. Solutions Sms has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing that the firm 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 in the case Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing can leverage the sales team experience to cultivate customer relationships as Solutions Sms is planning to shift buying processes online.
Interest costs
– Compare to the competition, Solutions Sms has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
No frontier risks strategy
– After analyzing the HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. 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.
Skills based hiring
– The stress on hiring functional specialists at Solutions Sms 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Solutions Sms has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Solutions Sms is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Solutions Sms needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Solutions Sms to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Solutions Sms, firm in the HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing, is just above the industry average. Solutions Sms 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.
Lack of clear differentiation of Solutions Sms products
– To increase the profitability and margins on the products, Solutions Sms needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Solutions Sms 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.
Opportunities Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Solutions Sms can use these opportunities to build new business models that can help the communities that Solutions Sms operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Learning at scale
– Online learning technologies has now opened space for Solutions Sms to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Solutions Sms 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Solutions Sms can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Solutions Sms can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Solutions Sms 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.
Using analytics as competitive advantage
– Solutions Sms has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Solutions Sms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Solutions Sms can develop new processes and procedures in Organizational Development 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Solutions Sms 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. Solutions Sms 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.
Better consumer reach
– The expansion of the 5G network will help Solutions Sms to increase its market reach. Solutions Sms 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.
Manufacturing automation
– Solutions Sms can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. 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.
Creating value in data economy
– The success of analytics program of Solutions Sms has opened avenues for new revenue streams for the organization in the industry. This can help Solutions Sms to build a more holistic ecosystem as suggested in the Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing case study. Solutions Sms can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Solutions Sms 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 Organizational Development segment.
Threats Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing are -
Regulatory challenges
– Solutions Sms needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
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 Solutions Sms.
Increasing wage structure of Solutions Sms
– 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 Solutions Sms.
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. Solutions Sms needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Solutions Sms in the Organizational Development industry. The Organizational Development 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 Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Solutions Sms can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Solutions Sms 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.
Shortening product life cycle
– it is one of the major threat that Solutions Sms is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Solutions Sms 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 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.
Stagnating economy with rate increase
– Solutions Sms 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 field.
Consumer confidence and its impact on Solutions Sms 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 the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Solutions Sms 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 prominent markets illustrated in HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing .
Weighted SWOT Analysis of Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing 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 the case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing 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 the Harvard case study Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing 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 Siemens Medical Solutions: Creating a Customer-Focused Organization for Solutions Marketing is 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 Solutions Sms needs to make to build a sustainable competitive advantage.
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