Case Study Description of Narayana Hrudayalaya Heart Hospital, Video
Narayana Hrudayalaya (NH) is one of the world's busiest heart hospitals, where surgeons perform 30-35 complex cardiac surgeries daily. With an average cost of $1,800 per surgery, the hospital treats patients at affordable prices, and does not turn away even the poorest of the poor. The hospital's high volumes provide economies of scale that keep costs low, and offer surgeons greater experience, thereby resulting in high quality. NH utilizes its resources, including its equipment and infrastructure, as well as the time of its doctors and residents, optimally, further pushing costs down. The Yeshasvini insurance scheme, conceptualized by Dr. Devi Shetty, founder of NH, provides members of farming cooperatives access to cashless treatment in over 350 hospitals across the state of Karnataka.
Swot Analysis of "Narayana Hrudayalaya Heart Hospital, Video" written by Tarun Khanna, Tanya Bijlani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nh Hrudayalaya facing as an external strategic factors. Some of the topics covered in Narayana Hrudayalaya Heart Hospital, Video case study are - Strategic Management Strategies, Innovation, International business, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Narayana Hrudayalaya Heart Hospital, Video casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of Narayana Hrudayalaya Heart Hospital, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Narayana Hrudayalaya Heart Hospital, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nh Hrudayalaya, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nh Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital, Video can be done for the following purposes –
1. Strategic planning using facts provided in Narayana Hrudayalaya Heart Hospital, Video case study
2. Improving business portfolio management of Nh Hrudayalaya
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 Nh Hrudayalaya
Strengths Narayana Hrudayalaya Heart Hospital, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nh Hrudayalaya in Narayana Hrudayalaya Heart Hospital, Video Harvard Business Review case study are -
Organizational Resilience of Nh Hrudayalaya
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nh Hrudayalaya does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Nh Hrudayalaya has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nh Hrudayalaya 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.
Effective Research and Development (R&D)
– Nh Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Nh Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital, Video HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Nh Hrudayalaya in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Nh Hrudayalaya is one of the most innovative firm in sector. Manager in Narayana Hrudayalaya Heart Hospital, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Nh Hrudayalaya is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Nh Hrudayalaya digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nh Hrudayalaya 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.
Ability to recruit top talent
– Nh Hrudayalaya is one of the leading recruiters in the industry. Managers in the Narayana Hrudayalaya Heart Hospital, Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Nh Hrudayalaya has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Narayana Hrudayalaya Heart Hospital, Video 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.
High brand equity
– Nh Hrudayalaya has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nh Hrudayalaya to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Narayana Hrudayalaya Heart Hospital, Video firm has clearly differentiated products in the market place. This has enabled Nh Hrudayalaya to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nh Hrudayalaya to invest into research and development (R&D) and innovation.
Weaknesses Narayana Hrudayalaya Heart Hospital, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Narayana Hrudayalaya Heart Hospital, Video are -
No frontier risks strategy
– After analyzing the HBR case study Narayana Hrudayalaya Heart Hospital, Video, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Narayana Hrudayalaya Heart Hospital, Video 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 Nh Hrudayalaya has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nh Hrudayalaya is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Narayana Hrudayalaya Heart Hospital, Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Nh Hrudayalaya products
– To increase the profitability and margins on the products, Nh Hrudayalaya needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Narayana Hrudayalaya Heart Hospital, Video, is just above the industry average. Nh Hrudayalaya 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nh Hrudayalaya 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.
Increasing silos among functional specialists
– The organizational structure of Nh Hrudayalaya is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Nh Hrudayalaya needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nh Hrudayalaya to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Nh Hrudayalaya 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.
Aligning sales with marketing
– It come across in the case study Narayana Hrudayalaya Heart Hospital, Video 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 Narayana Hrudayalaya Heart Hospital, Video can leverage the sales team experience to cultivate customer relationships as Nh Hrudayalaya is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Nh Hrudayalaya, firm in the HBR case study Narayana Hrudayalaya Heart Hospital, Video needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Nh Hrudayalaya has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Narayana Hrudayalaya Heart Hospital, Video | 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 Narayana Hrudayalaya Heart Hospital, Video are -
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. Nh Hrudayalaya can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Nh Hrudayalaya can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Narayana Hrudayalaya Heart Hospital, Video 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nh Hrudayalaya can use these opportunities to build new business models that can help the communities that Nh Hrudayalaya operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Nh Hrudayalaya has opened avenues for new revenue streams for the organization in the industry. This can help Nh Hrudayalaya to build a more holistic ecosystem as suggested in the Narayana Hrudayalaya Heart Hospital, Video case study. Nh Hrudayalaya can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Nh Hrudayalaya 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 Nh Hrudayalaya 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, Nh Hrudayalaya is facing challenges because of the dominance of functional experts in the organization. Narayana Hrudayalaya Heart Hospital, Video 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nh Hrudayalaya can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Nh Hrudayalaya 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. Nh Hrudayalaya 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.
Developing new processes and practices
– Nh Hrudayalaya 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nh Hrudayalaya 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.
Using analytics as competitive advantage
– Nh Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital, Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nh Hrudayalaya 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, Nh Hrudayalaya 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, Narayana Hrudayalaya Heart Hospital, Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Narayana Hrudayalaya Heart Hospital, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Narayana Hrudayalaya Heart Hospital, Video are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nh Hrudayalaya 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Narayana Hrudayalaya Heart Hospital, Video, Nh Hrudayalaya 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 .
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 Nh Hrudayalaya in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Nh Hrudayalaya has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Nh Hrudayalaya 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, Nh Hrudayalaya 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 Narayana Hrudayalaya Heart Hospital, Video .
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 Nh Hrudayalaya.
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. Nh Hrudayalaya needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Nh Hrudayalaya 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. Nh Hrudayalaya can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Nh Hrudayalaya business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Nh Hrudayalaya 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.
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. Nh Hrudayalaya 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
– Nh Hrudayalaya 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.
Consumer confidence and its impact on Nh Hrudayalaya 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.
Weighted SWOT Analysis of Narayana Hrudayalaya Heart Hospital, Video 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 Narayana Hrudayalaya Heart Hospital, Video 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 Narayana Hrudayalaya Heart Hospital, Video 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 Narayana Hrudayalaya Heart Hospital, Video 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 Narayana Hrudayalaya Heart Hospital, Video 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 Nh Hrudayalaya needs to make to build a sustainable competitive advantage.
