Case Study Description of Ekohealth: Developing Price Structures
Founded in 2011 in Mumbai, India, Ekohealth Management Consultants Private Limited helped its subscribing members by negotiating bulk discounts with hospitals for all planned surgeries and reducing their monthly bills by suggesting low-cost generic drugs rather than expensive brand names. It ensured ethical health care practices by removing the referral fees doctors routinely demanded from hospitals, pathology clinics, pharmaceutical companies and other medical professionals in exchange for directing patients to them. The company had entered fiscal year 2013/14 with a high momentum and envisioned recording revenue of INR28.3 million by the end of the year. The existing price metric involved a single price point: the annual membership fee of INR1,500 for up to five members of a family. The company has plans to move into other Indian cities by mid-2014. Is the single price metric appropriate for these new markets? Neeraj Pandey and Gaganpreet Singh are affiliated with National Institute of Industrial Engineering (NITIE).
Swot Analysis of "Ekohealth: Developing Price Structures" written by Neeraj Pandey, Gaganpreet Singh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ekohealth Metric facing as an external strategic factors. Some of the topics covered in Ekohealth: Developing Price Structures case study are - Strategic Management Strategies, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Ekohealth: Developing Price Structures casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, wage bills are increasing, geopolitical disruptions, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Ekohealth: Developing Price Structures
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ekohealth: Developing Price Structures case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ekohealth Metric, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ekohealth Metric 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 Ekohealth: Developing Price Structures can be done for the following purposes –
1. Strategic planning using facts provided in Ekohealth: Developing Price Structures case study
2. Improving business portfolio management of Ekohealth Metric
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 Ekohealth Metric
Strengths Ekohealth: Developing Price Structures | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ekohealth Metric in Ekohealth: Developing Price Structures Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ekohealth Metric in the sector have low bargaining power. Ekohealth: Developing Price Structures has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ekohealth Metric to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Ekohealth Metric has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ekohealth: Developing Price Structures Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Ekohealth Metric 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 Ekohealth: Developing Price Structures HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Ekohealth Metric has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ekohealth Metric 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.
High brand equity
– Ekohealth Metric has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ekohealth Metric to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Ekohealth: Developing Price Structures firm has clearly differentiated products in the market place. This has enabled Ekohealth Metric to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Ekohealth Metric to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Ekohealth Metric is one of the leading recruiters in the industry. Managers in the Ekohealth: Developing Price Structures are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Ekohealth Metric is present in almost all the verticals within the industry. This has provided firm in Ekohealth: Developing Price Structures 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 Sales & Marketing segment
- digital transformation varies from industry to industry. For Ekohealth Metric digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ekohealth Metric 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.
Strong track record of project management
– Ekohealth Metric is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Ekohealth Metric 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.
Cross disciplinary teams
– Horizontal connected teams at the Ekohealth Metric 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.
Weaknesses Ekohealth: Developing Price Structures | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ekohealth: Developing Price Structures are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ekohealth Metric is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ekohealth: Developing Price Structures 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 decision making process
– As mentioned earlier in the report, Ekohealth Metric 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. Ekohealth Metric 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Ekohealth Metric supply chain. Even after few cautionary changes mentioned in the HBR case study - Ekohealth: Developing Price Structures, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ekohealth Metric vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Ekohealth Metric 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ekohealth: Developing Price Structures, is just above the industry average. Ekohealth Metric 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.
Capital Spending Reduction
– Even during the low interest decade, Ekohealth Metric 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.
Aligning sales with marketing
– It come across in the case study Ekohealth: Developing Price Structures 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 Ekohealth: Developing Price Structures can leverage the sales team experience to cultivate customer relationships as Ekohealth Metric is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Ekohealth Metric is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Ekohealth Metric needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ekohealth Metric to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Ekohealth: Developing Price Structures HBR case study mentions - Ekohealth Metric 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ekohealth Metric 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.
Need for greater diversity
– Ekohealth Metric 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 Ekohealth: Developing Price Structures | 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 Ekohealth: Developing Price Structures are -
Learning at scale
– Online learning technologies has now opened space for Ekohealth Metric 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.
Loyalty marketing
– Ekohealth Metric 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.
Using analytics as competitive advantage
– Ekohealth Metric 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 Ekohealth: Developing Price Structures - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ekohealth Metric to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ekohealth Metric 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. Ekohealth Metric 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
– Ekohealth Metric 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ekohealth Metric is facing challenges because of the dominance of functional experts in the organization. Ekohealth: Developing Price Structures 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.
Creating value in data economy
– The success of analytics program of Ekohealth Metric has opened avenues for new revenue streams for the organization in the industry. This can help Ekohealth Metric to build a more holistic ecosystem as suggested in the Ekohealth: Developing Price Structures case study. Ekohealth Metric can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Ekohealth Metric can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ekohealth Metric 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.
Better consumer reach
– The expansion of the 5G network will help Ekohealth Metric to increase its market reach. Ekohealth Metric 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ekohealth Metric 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, Ekohealth: Developing Price Structures, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ekohealth Metric can use these opportunities to build new business models that can help the communities that Ekohealth Metric operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Building a culture of innovation
– managers at Ekohealth Metric 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 Sales & Marketing segment.
Threats Ekohealth: Developing Price Structures External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ekohealth: Developing Price Structures are -
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ekohealth Metric can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Ekohealth Metric 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ekohealth: Developing Price Structures, Ekohealth Metric 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 .
Environmental challenges
– Ekohealth Metric 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. Ekohealth Metric can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Consumer confidence and its impact on Ekohealth Metric 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ekohealth Metric 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ekohealth Metric with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Ekohealth Metric is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ekohealth Metric needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
Increasing wage structure of Ekohealth Metric
– 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 Ekohealth Metric.
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 Ekohealth Metric business can come under increasing regulations regarding data privacy, data security, etc.
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. Ekohealth Metric 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.
Weighted SWOT Analysis of Ekohealth: Developing Price Structures 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 Ekohealth: Developing Price Structures 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 Ekohealth: Developing Price Structures 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 Ekohealth: Developing Price Structures 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 Ekohealth: Developing Price Structures 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 Ekohealth Metric needs to make to build a sustainable competitive advantage.