Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor
Aravind Eye Care Systems (Aravind) had started setting up vision centers (VC) in 2006 and 51 VCs were operational by March 2015. The location for each VC was chosen to ensure easy access for about 50,000 people across 15 to 20 villages within a 5-7 km radial distance. Each VC had a target of reaching at least 10% of the population, that is, around 5,000 patients, which served as a benchmark for penetration. Consultations related to eye care were provided at the VC. They also dispensed medicines and spectacles. The VC would facilitate arrangements for patients requiring surgeries at the base hospital, including their transport, food and any other reimbursement. Each VC had three key personnel - coordinator, ophthalmic technician, and field worker. The VC was equipped with basic ophthalmic equipment and internet connectivity. The presence of a permanent establishment, in the form of a VC, motivated people in rural areas to seek earlier treatment for vision problems. This helped in eliminating vision care problems and enabled them to get back to earning their livelihoods. The permanent setup also positively influenced the healthcare seeking behavior of the people. Most VCs had performed well, however some VCs were not attracting enough patients, thus not enabling Aravind's classic, volume-driven model, to work and support self-sustainable operations. Thulsiraj, Director of Aravind, was analyzing the performance of all VCs. How should he analyze the performance of VCs from a marketing perspective? Should he change the marketing strategies for those VCs which had attracted a very low number of patients and if yes, how will it be be designed, considering the unique market in which VC operates? Were the VCs innovative in their approach to reach out to patients? Were the VCs self-sustainable? What parameters should he use to evaluate the performance of VCs? How should he increase the number of patients at VCs?
Swot Analysis of "Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor" written by Shainesh G, Suhruta Kulkarni includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vcs Vc facing as an external strategic factors. Some of the topics covered in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor case study are - Strategic Management Strategies, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor casestudy better are - – technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, there is backlash against globalization,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vcs Vc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vcs Vc 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor can be done for the following purposes –
1. Strategic planning using facts provided in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor case study
2. Improving business portfolio management of Vcs Vc
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 Vcs Vc
Strengths Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vcs Vc in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Vcs Vc 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.
Strong track record of project management
– Vcs Vc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Vcs Vc in the sector have low bargaining power. Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vcs Vc to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor firm has clearly differentiated products in the market place. This has enabled Vcs Vc to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Vcs Vc to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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.
Organizational Resilience of Vcs Vc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vcs Vc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Vcs Vc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vcs Vc 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
– Vcs Vc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vcs Vc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Vcs Vc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vcs Vc 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.
Training and development
– Vcs Vc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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.
Ability to lead change in Sales & Marketing field
– Vcs Vc 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 Vcs Vc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Vcs Vc is present in almost all the verticals within the industry. This has provided firm in Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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.
Weaknesses Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor are -
Interest costs
– Compare to the competition, Vcs Vc 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Shainesh G, Suhruta Kulkarni suggests that, Vcs Vc 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.
Lack of clear differentiation of Vcs Vc products
– To increase the profitability and margins on the products, Vcs Vc needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Vcs Vc is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Vcs Vc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vcs Vc to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Vcs Vc 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.
Products dominated business model
– Even though Vcs Vc 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 - Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor, is just above the industry average. Vcs Vc 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor, in the dynamic environment Vcs Vc has struggled to respond to the nimble upstart competition. Vcs Vc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Vcs Vc is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor, it seems that the employees of Vcs Vc 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.
Opportunities Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor | 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor are -
Better consumer reach
– The expansion of the 5G network will help Vcs Vc to increase its market reach. Vcs Vc 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vcs Vc is facing challenges because of the dominance of functional experts in the organization. Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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.
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 Vcs Vc in the consumer business. Now Vcs Vc can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vcs Vc 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vcs Vc 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, Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Vcs Vc can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Using analytics as competitive advantage
– Vcs Vc 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vcs Vc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vcs Vc to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Vcs Vc to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Vcs Vc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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.
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. Vcs Vc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vcs Vc 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.
Building a culture of innovation
– managers at Vcs Vc 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.
Leveraging digital technologies
– Vcs Vc 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.
Threats Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor are -
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.
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. Vcs Vc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Vcs Vc 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.
Stagnating economy with rate increase
– Vcs Vc 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 Vcs Vc.
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.
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 Vcs Vc business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Vcs Vc 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Vcs Vc 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor .
Consumer confidence and its impact on Vcs Vc 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 wage structure of Vcs Vc
– 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 Vcs Vc.
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 Vcs Vc in the Sales & Marketing sector and impact the bottomline of the organization.
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. Vcs Vc needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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 Aravind Eye Care's Vision Centers - Reaching Out to the Rural Poor 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 Vcs Vc needs to make to build a sustainable competitive advantage.