MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information
This case includes supplements.Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture. MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures. The respective negotiators must develop a way for companies with such divergent cultures to work together. This is a role play case.
Swot Analysis of "MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information" written by Candace Lun, Jeswald Salacuse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Meddevice Lee facing as an external strategic factors. Some of the topics covered in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study are - Strategic Management Strategies, Conflict, Decision making, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, supply chains are disrupted by pandemic ,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Meddevice Lee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information can be done for the following purposes –
1. Strategic planning using facts provided in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study
2. Improving business portfolio management of Meddevice Lee
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 Meddevice Lee
Strengths MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Meddevice Lee in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information Harvard Business Review case study are -
Effective Research and Development (R&D)
– Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information - 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 Meddevice Lee 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.
Highly skilled collaborators
– Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Meddevice Lee 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.
Analytics focus
– Meddevice Lee 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 Candace Lun, Jeswald Salacuse 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.
Operational resilience
– The operational resilience strategy in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
Sustainable margins compare to other players in Strategy & Execution industry
– MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information firm has clearly differentiated products in the market place. This has enabled Meddevice Lee to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Meddevice Lee to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Meddevice Lee in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Meddevice Lee is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Meddevice Lee 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 Meddevice Lee is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Meddevice Lee has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Meddevice Lee 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.
Ability to lead change in Strategy & Execution field
– Meddevice Lee 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 Meddevice Lee in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
Capital Spending Reduction
– Even during the low interest decade, Meddevice Lee 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.
Skills based hiring
– The stress on hiring functional specialists at Meddevice Lee 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.
Increasing silos among functional specialists
– The organizational structure of Meddevice Lee is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Meddevice Lee needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Meddevice Lee 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, Meddevice Lee is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information HBR case study mentions - Meddevice Lee 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.
High operating costs
– Compare to the competitors, firm in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Meddevice Lee 's lucrative customers.
High cash cycle compare to competitors
Meddevice Lee 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it seems that the employees of Meddevice Lee 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 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 Meddevice Lee supply chain. Even after few cautionary changes mentioned in the HBR case study - MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Meddevice Lee vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Meddevice Lee 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. Meddevice Lee 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.
No frontier risks strategy
– After analyzing the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Meddevice Lee 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.
Better consumer reach
– The expansion of the 5G network will help Meddevice Lee to increase its market reach. Meddevice Lee 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.
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. Meddevice Lee can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Meddevice Lee can use these opportunities to build new business models that can help the communities that Meddevice Lee operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Meddevice Lee 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.
Manufacturing automation
– Meddevice Lee can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Building a culture of innovation
– managers at Meddevice Lee 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 Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Meddevice Lee has opened avenues for new revenue streams for the organization in the industry. This can help Meddevice Lee to build a more holistic ecosystem as suggested in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study. Meddevice Lee 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Meddevice Lee can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Meddevice Lee 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Meddevice Lee is facing challenges because of the dominance of functional experts in the organization. MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
Developing new processes and practices
– Meddevice Lee can develop new processes and procedures in Strategy & Execution 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.
Using analytics as competitive advantage
– Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Meddevice Lee to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Meddevice Lee can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Meddevice Lee 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.
Shortening product life cycle
– it is one of the major threat that Meddevice Lee is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Meddevice Lee 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 Meddevice Lee 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.
Technology acceleration in Forth Industrial Revolution
– Meddevice Lee has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Meddevice Lee 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.
High dependence on third party suppliers
– Meddevice Lee 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, Meddevice Lee 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 .
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. Meddevice Lee needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Meddevice Lee 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.
Increasing wage structure of Meddevice Lee
– 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 Meddevice Lee.
Environmental challenges
– Meddevice Lee 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. Meddevice Lee can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 Meddevice Lee needs to make to build a sustainable competitive advantage.