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 - – increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing energy prices,
competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, 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 -
Effective Research and Development (R&D)
– Wellspace Purveyor 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Wellspace Purveyor is one of the most innovative firm in sector. Manager in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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
– 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.
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.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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.
Diverse revenue streams
– Wellspace Purveyor is present in almost all the verticals within the industry. This has provided firm in WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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.
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.
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.
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.
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 -
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.
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 dependence on star products
– The top 2 products and services of the firm as mentioned in the WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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 Wellspace Purveyor has relatively successful track record of launching new products.
Need for greater diversity
– Wellspace Purveyor has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study WellSpace Treatment Centers for Complementary and Alternative Medicine (A), is just above the industry average. Wellspace Purveyor 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.
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 -
Manufacturing automation
– Wellspace Purveyor 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.
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.
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.
Using analytics as competitive advantage
– Wellspace Purveyor 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 WellSpace Treatment Centers for Complementary and Alternative Medicine (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wellspace Purveyor to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wellspace Purveyor 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, WellSpace Treatment Centers for Complementary and Alternative Medicine (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Buying journey improvements
– Wellspace Purveyor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. WellSpace Treatment Centers for Complementary and Alternative Medicine (A) 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.
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.
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.
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.
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 -
High dependence on third party suppliers
– Wellspace Purveyor 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.
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.
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.
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.
Environmental challenges
– Wellspace Purveyor 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. Wellspace Purveyor can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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.
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.
Consumer confidence and its impact on Wellspace Purveyor 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.
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.
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.
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 Wellspace Purveyor business can come under increasing regulations regarding data privacy, data security, etc.
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.