Swot Analysis of "Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)"" written by Regina E. Herzlinger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Medcath Corporation facing as an external strategic factors. Some of the topics covered in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" case study are - Strategic Management Strategies, Innovation, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" casestudy better are - – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
competitive advantages are harder to sustain because of technology dispersion, technology disruption, etc
Introduction to SWOT Analysis of Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Medcath Corporation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Medcath Corporation 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" can be done for the following purposes –
1. Strategic planning using facts provided in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" case study
2. Improving business portfolio management of Medcath Corporation
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Medcath Corporation
Strengths Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Medcath Corporation in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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.
High switching costs
– The high switching costs that Medcath Corporation 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Medcath Corporation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Medcath Corporation 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" firm has clearly differentiated products in the market place. This has enabled Medcath Corporation to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Medcath Corporation to invest into research and development (R&D) and innovation.
Learning organization
- Medcath Corporation 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 Medcath Corporation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Medcath Corporation is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Regina E. Herzlinger can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Innovation driven organization
– Medcath Corporation is one of the most innovative firm in sector. Manager in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Medcath Corporation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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.
Successful track record of launching new products
– Medcath Corporation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Medcath Corporation 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
– Medcath Corporation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Medcath Corporation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Medcath Corporation 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Medcath Corporation 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" are -
Lack of clear differentiation of Medcath Corporation products
– To increase the profitability and margins on the products, Medcath Corporation needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Medcath Corporation supply chain. Even after few cautionary changes mentioned in the HBR case study - Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Medcath Corporation vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Medcath Corporation has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)", is just above the industry average. Medcath Corporation 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.
Products dominated business model
– Even though Medcath Corporation 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 - Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" can leverage the sales team experience to cultivate customer relationships as Medcath Corporation is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" HBR case study mentions - Medcath Corporation 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.
Slow decision making process
– As mentioned earlier in the report, Medcath Corporation 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. Medcath Corporation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)", in the dynamic environment Medcath Corporation has struggled to respond to the nimble upstart competition. Medcath Corporation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Medcath Corporation, firm in the HBR case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Medcath Corporation 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.
Opportunities Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" | 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" are -
Buying journey improvements
– Medcath Corporation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Medcath Corporation in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Medcath Corporation is facing challenges because of the dominance of functional experts in the organization. Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Medcath Corporation 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, Medcath Corporation 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, Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Medcath Corporation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Medcath Corporation 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. Medcath Corporation 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.
Leveraging digital technologies
– Medcath Corporation 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.
Using analytics as competitive advantage
– Medcath Corporation 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Medcath Corporation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Medcath Corporation can use these opportunities to build new business models that can help the communities that Medcath Corporation operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Medcath Corporation 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 Medcath Corporation to hire the very best people irrespective of their geographical location.
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 Medcath Corporation in the consumer business. Now Medcath Corporation can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Medcath Corporation 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.
Threats Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Medcath Corporation 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" .
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 Medcath Corporation business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Medcath Corporation
– 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 Medcath Corporation.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Medcath Corporation in the Strategy & Execution industry. The Strategy & Execution 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Medcath Corporation 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 Medcath Corporation in the Strategy & Execution 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. Medcath Corporation needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Medcath Corporation 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 Strategy & Execution industry regulations.
Stagnating economy with rate increase
– Medcath Corporation can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Medcath Corporation 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)", Medcath Corporation may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology acceleration in Forth Industrial Revolution
– Medcath Corporation has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Medcath Corporation needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Supplement to "MedCath Corporation (A)" and "MedCath Corporation (B)" 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 Medcath Corporation needs to make to build a sustainable competitive advantage.