CFW Clinics in Kenya: To Profit or Not for Profit SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of CFW Clinics in Kenya: To Profit or Not for Profit
Ten years after having launched a chain of non-profit health clinics, its founder is now debating the merits of scaling the operation by converting to a for-profit enterprise.
Swot Analysis of "CFW Clinics in Kenya: To Profit or Not for Profit" written by V. Kasturi Rangan, Katherine Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Profit Clinics facing as an external strategic factors. Some of the topics covered in CFW Clinics in Kenya: To Profit or Not for Profit case study are - Strategic Management Strategies, Change management, Decision making, Health, Marketing, Social enterprise and Sales & Marketing.
Some of the macro environment factors that can be used to understand the CFW Clinics in Kenya: To Profit or Not for Profit casestudy better are - – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of CFW Clinics in Kenya: To Profit or Not for Profit
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CFW Clinics in Kenya: To Profit or Not for Profit case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Profit Clinics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Profit Clinics 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 CFW Clinics in Kenya: To Profit or Not for Profit can be done for the following purposes –
1. Strategic planning using facts provided in CFW Clinics in Kenya: To Profit or Not for Profit case study
2. Improving business portfolio management of Profit Clinics
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Profit Clinics
Strengths CFW Clinics in Kenya: To Profit or Not for Profit | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Profit Clinics in CFW Clinics in Kenya: To Profit or Not for Profit Harvard Business Review case study are -
Diverse revenue streams
– Profit Clinics is present in almost all the verticals within the industry. This has provided firm in CFW Clinics in Kenya: To Profit or Not for Profit 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.
Operational resilience
– The operational resilience strategy in the CFW Clinics in Kenya: To Profit or Not for Profit 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.
Strong track record of project management
– Profit Clinics 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 recruit top talent
– Profit Clinics is one of the leading recruiters in the industry. Managers in the CFW Clinics in Kenya: To Profit or Not for Profit are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Profit Clinics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Profit Clinics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Profit Clinics are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Superior customer experience
– The customer experience strategy of Profit Clinics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Profit Clinics 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 CFW Clinics in Kenya: To Profit or Not for Profit - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Profit Clinics 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.
High brand equity
– Profit Clinics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Profit Clinics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Profit Clinics in the sector have low bargaining power. CFW Clinics in Kenya: To Profit or Not for Profit has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Profit Clinics to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Profit Clinics 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 CFW Clinics in Kenya: To Profit or Not for Profit HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses CFW Clinics in Kenya: To Profit or Not for Profit | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CFW Clinics in Kenya: To Profit or Not for Profit are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study CFW Clinics in Kenya: To Profit or Not for Profit, in the dynamic environment Profit Clinics has struggled to respond to the nimble upstart competition. Profit Clinics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Profit Clinics is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Profit Clinics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Profit Clinics to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Profit Clinics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CFW Clinics in Kenya: To Profit or Not for Profit can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As CFW Clinics in Kenya: To Profit or Not for Profit HBR case study mentions - Profit Clinics takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Products dominated business model
– Even though Profit Clinics has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - CFW Clinics in Kenya: To Profit or Not for Profit should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Profit Clinics products
– To increase the profitability and margins on the products, Profit Clinics needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study CFW Clinics in Kenya: To Profit or Not for Profit, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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.
Capital Spending Reduction
– Even during the low interest decade, Profit Clinics has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Profit Clinics 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. Profit Clinics 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CFW Clinics in Kenya: To Profit or Not for Profit, it seems that the employees of Profit Clinics don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Kasturi Rangan, Katherine Lee suggests that, Profit Clinics is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities CFW Clinics in Kenya: To Profit or Not for Profit | 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 CFW Clinics in Kenya: To Profit or Not for Profit are -
Learning at scale
– Online learning technologies has now opened space for Profit Clinics 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.
Developing new processes and practices
– Profit Clinics can develop new processes and procedures in Sales & Marketing 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Profit Clinics can use these opportunities to build new business models that can help the communities that Profit Clinics operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Profit Clinics can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, CFW Clinics in Kenya: To Profit or Not for Profit, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Profit Clinics in the consumer business. Now Profit Clinics can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Profit Clinics 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 CFW Clinics in Kenya: To Profit or Not for Profit - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Profit Clinics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Profit Clinics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CFW Clinics in Kenya: To Profit or Not for Profit 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Profit Clinics in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Profit Clinics 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Profit Clinics is facing challenges because of the dominance of functional experts in the organization. CFW Clinics in Kenya: To Profit or Not for Profit 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.
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 Profit Clinics 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.
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. Profit Clinics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Profit Clinics has opened avenues for new revenue streams for the organization in the industry. This can help Profit Clinics to build a more holistic ecosystem as suggested in the CFW Clinics in Kenya: To Profit or Not for Profit case study. Profit Clinics can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats CFW Clinics in Kenya: To Profit or Not for Profit External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CFW Clinics in Kenya: To Profit or Not for Profit are -
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 Profit Clinics in the Sales & Marketing sector and impact the bottomline of the organization.
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 Profit Clinics business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Profit Clinics is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Profit Clinics 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Profit Clinics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Profit Clinics needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Profit Clinics can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CFW Clinics in Kenya: To Profit or Not for Profit, Profit Clinics may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Profit Clinics 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 CFW Clinics in Kenya: To Profit or Not for Profit .
High dependence on third party suppliers
– Profit Clinics 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.
Regulatory challenges
– Profit Clinics 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 Sales & Marketing industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Profit Clinics in the Sales & Marketing industry. The Sales & Marketing 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.
Weighted SWOT Analysis of CFW Clinics in Kenya: To Profit or Not for Profit 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 CFW Clinics in Kenya: To Profit or Not for Profit 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 CFW Clinics in Kenya: To Profit or Not for Profit 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 CFW Clinics in Kenya: To Profit or Not for Profit 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 CFW Clinics in Kenya: To Profit or Not for Profit 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 Profit Clinics needs to make to build a sustainable competitive advantage.
