HealthCare.gov: The Crash and the Fix (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HealthCare.gov: The Crash and the Fix (A)
A review of the process utilized by the Obama administration to create the Health Care.gov exchange and the problems that resulted from the implementation effort. There is a B case that provides the follow on strategy and processes utilized to get the site up and running after the initial failures of implementation.
Authors :: Leonard A. Schlesinger, Paras D. Bhayani
Swot Analysis of "HealthCare.gov: The Crash and the Fix (A)" written by Leonard A. Schlesinger, Paras D. Bhayani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Utilized Care.gov facing as an external strategic factors. Some of the topics covered in HealthCare.gov: The Crash and the Fix (A) case study are - Strategic Management Strategies, Innovation, Internet, IT, Regulation, Strategy execution and Organizational Development.
Some of the macro environment factors that can be used to understand the HealthCare.gov: The Crash and the Fix (A) casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, geopolitical disruptions,
increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of HealthCare.gov: The Crash and the Fix (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HealthCare.gov: The Crash and the Fix (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Utilized Care.gov, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Utilized Care.gov 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 HealthCare.gov: The Crash and the Fix (A) can be done for the following purposes –
1. Strategic planning using facts provided in HealthCare.gov: The Crash and the Fix (A) case study
2. Improving business portfolio management of Utilized Care.gov
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 Utilized Care.gov
Strengths HealthCare.gov: The Crash and the Fix (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Utilized Care.gov in HealthCare.gov: The Crash and the Fix (A) Harvard Business Review case study are -
Learning organization
- Utilized Care.gov is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Utilized Care.gov is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HealthCare.gov: The Crash and the Fix (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Utilized Care.gov has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Utilized Care.gov to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Utilized Care.gov in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Utilized Care.gov has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in HealthCare.gov: The Crash and the Fix (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Utilized Care.gov is present in almost all the verticals within the industry. This has provided firm in HealthCare.gov: The Crash and the Fix (A) 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.
Low bargaining power of suppliers
– Suppliers of Utilized Care.gov in the sector have low bargaining power. HealthCare.gov: The Crash and the Fix (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Utilized Care.gov to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Utilized Care.gov is one of the most innovative firm in sector. Manager in HealthCare.gov: The Crash and the Fix (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Organizational Development industry
– HealthCare.gov: The Crash and the Fix (A) firm has clearly differentiated products in the market place. This has enabled Utilized Care.gov to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Utilized Care.gov to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Utilized Care.gov 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 Utilized Care.gov
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Utilized Care.gov does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Utilized Care.gov is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Organizational Development field
– Utilized Care.gov 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 Utilized Care.gov in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses HealthCare.gov: The Crash and the Fix (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HealthCare.gov: The Crash and the Fix (A) are -
Interest costs
– Compare to the competition, Utilized Care.gov 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.
Aligning sales with marketing
– It come across in the case study HealthCare.gov: The Crash and the Fix (A) 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 HealthCare.gov: The Crash and the Fix (A) can leverage the sales team experience to cultivate customer relationships as Utilized Care.gov is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Utilized Care.gov is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HealthCare.gov: The Crash and the Fix (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Utilized Care.gov products
– To increase the profitability and margins on the products, Utilized Care.gov needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Utilized Care.gov has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, firm in the HBR case study HealthCare.gov: The Crash and the Fix (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Utilized Care.gov 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Utilized Care.gov has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Utilized Care.gov even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Utilized Care.gov 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Utilized Care.gov 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.
No frontier risks strategy
– After analyzing the HBR case study HealthCare.gov: The Crash and the Fix (A), 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.
Low market penetration in new markets
– Outside its home market of Utilized Care.gov, firm in the HBR case study HealthCare.gov: The Crash and the Fix (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities HealthCare.gov: The Crash and the Fix (A) | 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 HealthCare.gov: The Crash and the Fix (A) are -
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. Utilized Care.gov 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. Utilized Care.gov 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.
Developing new processes and practices
– Utilized Care.gov 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Utilized Care.gov 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.
Leveraging digital technologies
– Utilized Care.gov can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Utilized Care.gov can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Utilized Care.gov can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Utilized Care.gov 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 HealthCare.gov: The Crash and the Fix (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Utilized Care.gov to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Utilized Care.gov has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Utilized Care.gov can use these opportunities to build new business models that can help the communities that Utilized Care.gov 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 Utilized Care.gov 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.
Creating value in data economy
– The success of analytics program of Utilized Care.gov has opened avenues for new revenue streams for the organization in the industry. This can help Utilized Care.gov to build a more holistic ecosystem as suggested in the HealthCare.gov: The Crash and the Fix (A) case study. Utilized Care.gov can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Utilized Care.gov can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HealthCare.gov: The Crash and the Fix (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Utilized Care.gov is facing challenges because of the dominance of functional experts in the organization. HealthCare.gov: The Crash and the Fix (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats HealthCare.gov: The Crash and the Fix (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HealthCare.gov: The Crash and the Fix (A) are -
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 Utilized Care.gov business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Utilized Care.gov 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.
Stagnating economy with rate increase
– Utilized Care.gov 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.
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 Utilized Care.gov.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Utilized Care.gov 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.
Shortening product life cycle
– it is one of the major threat that Utilized Care.gov is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Utilized Care.gov with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Utilized Care.gov in the Organizational Development sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Utilized Care.gov 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.
Increasing wage structure of Utilized Care.gov
– 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 Utilized Care.gov.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HealthCare.gov: The Crash and the Fix (A), Utilized Care.gov may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Utilized Care.gov 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 HealthCare.gov: The Crash and the Fix (A) .
Weighted SWOT Analysis of HealthCare.gov: The Crash and the Fix (A) 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 HealthCare.gov: The Crash and the Fix (A) 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 HealthCare.gov: The Crash and the Fix (A) 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 HealthCare.gov: The Crash and the Fix (A) 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 HealthCare.gov: The Crash and the Fix (A) 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 Utilized Care.gov needs to make to build a sustainable competitive advantage.