WellSpace Treatment Centers for Complementary and Alternative Medicine (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of WellSpace Treatment Centers for Complementary and Alternative Medicine (A)
How should WellSpace, a venture capital-backed purveyor of alternative health services, expand? Although it was nearing breakeven in its first location, the right business model remained unclear.
Authors :: Regina E. Herzlinger, Jun Huangpu, Bing Lin
Swot Analysis of "WellSpace Treatment Centers for Complementary and Alternative Medicine (A)" written by Regina E. Herzlinger, Jun Huangpu, Bing Lin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wellspace Purveyor facing as an external strategic factors. Some of the topics covered in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) case study are - Strategic Management Strategies, Entrepreneurial management, Innovation, Venture capital and Strategy & Execution.
Some of the macro environment factors that can be used to understand the WellSpace Treatment Centers for Complementary and Alternative Medicine (A) casestudy better are - – wage bills are increasing, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing energy prices,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of WellSpace Treatment Centers for Complementary and Alternative Medicine (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wellspace Purveyor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wellspace Purveyor 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) can be done for the following purposes –
1. Strategic planning using facts provided in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) case study
2. Improving business portfolio management of Wellspace Purveyor
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 Wellspace Purveyor
Strengths WellSpace Treatment Centers for Complementary and Alternative Medicine (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wellspace Purveyor in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) Harvard Business Review case study are -
Highly skilled collaborators
– Wellspace Purveyor 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Wellspace Purveyor 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, Jun Huangpu, Bing Lin 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.
Organizational Resilience of Wellspace Purveyor
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wellspace Purveyor does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Wellspace Purveyor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wellspace Purveyor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Wellspace Purveyor 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.
Ability to recruit top talent
– Wellspace Purveyor is one of the leading recruiters in the industry. Managers in the WellSpace Treatment Centers for Complementary and Alternative Medicine (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Wellspace Purveyor 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.
Learning organization
- Wellspace Purveyor 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 Wellspace Purveyor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Wellspace Purveyor in the sector have low bargaining power. WellSpace Treatment Centers for Complementary and Alternative Medicine (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wellspace Purveyor to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Wellspace Purveyor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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.
Strong track record of project management
– Wellspace Purveyor is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– WellSpace Treatment Centers for Complementary and Alternative Medicine (A) firm has clearly differentiated products in the market place. This has enabled Wellspace Purveyor to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Wellspace Purveyor to invest into research and development (R&D) and innovation.
Weaknesses WellSpace Treatment Centers for Complementary and Alternative Medicine (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WellSpace Treatment Centers for Complementary and Alternative Medicine (A) are -
Skills based hiring
– The stress on hiring functional specialists at Wellspace Purveyor 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.
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 Wellspace Purveyor supply chain. Even after few cautionary changes mentioned in the HBR case study - WellSpace Treatment Centers for Complementary and Alternative Medicine (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wellspace Purveyor vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As WellSpace Treatment Centers for Complementary and Alternative Medicine (A) HBR case study mentions - Wellspace Purveyor 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.
Capital Spending Reduction
– Even during the low interest decade, Wellspace Purveyor 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.
No frontier risks strategy
– After analyzing the HBR case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A), 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wellspace Purveyor 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.
Aligning sales with marketing
– It come across in the case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) can leverage the sales team experience to cultivate customer relationships as Wellspace Purveyor is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wellspace Purveyor is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 Wellspace Purveyor 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Wellspace Purveyor 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. Wellspace Purveyor 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.
Lack of clear differentiation of Wellspace Purveyor products
– To increase the profitability and margins on the products, Wellspace Purveyor needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities WellSpace Treatment Centers for Complementary and Alternative Medicine (A) | 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) are -
Building a culture of innovation
– managers at Wellspace Purveyor 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wellspace Purveyor is facing challenges because of the dominance of functional experts in the organization. WellSpace Treatment Centers for Complementary and Alternative Medicine (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Wellspace Purveyor to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Wellspace Purveyor can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wellspace Purveyor 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.
Better consumer reach
– The expansion of the 5G network will help Wellspace Purveyor to increase its market reach. Wellspace Purveyor 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wellspace Purveyor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Wellspace Purveyor 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.
Loyalty marketing
– Wellspace Purveyor 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.
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 Wellspace Purveyor in the consumer business. Now Wellspace Purveyor can target international markets with far fewer capital restrictions requirements than the existing system.
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. Wellspace Purveyor can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wellspace Purveyor 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 Wellspace Purveyor to hire the very best people irrespective of their geographical location.
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. Wellspace Purveyor 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. Wellspace Purveyor 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.
Threats WellSpace Treatment Centers for Complementary and Alternative Medicine (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wellspace Purveyor with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A), Wellspace Purveyor 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. Wellspace Purveyor needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Wellspace Purveyor in the Strategy & Execution sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wellspace Purveyor 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.
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. Wellspace Purveyor 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
– Wellspace Purveyor 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.
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.
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 Wellspace Purveyor.
Technology acceleration in Forth Industrial Revolution
– Wellspace Purveyor has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Wellspace Purveyor 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wellspace Purveyor 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) .
Increasing wage structure of Wellspace Purveyor
– 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 Wellspace Purveyor.
Stagnating economy with rate increase
– Wellspace Purveyor 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.
Weighted SWOT Analysis of WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 Wellspace Purveyor needs to make to build a sustainable competitive advantage.
