Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study Description of Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China
After successfully starting a joint venture with a prestigious hospital in Shanghai, Proactive Medicare, a Hong Kong-based SME, was keen to replicate its success in Beijing. Chronicles the development of the JV in Shanghai from inception to implementation.
Swot Analysis of "Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China" written by Andrew Lee, Gilbert Wong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Medicare Proactive facing as an external strategic factors. Some of the topics covered in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China case study are - Strategic Management Strategies, Networking, Strategic planning, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China casestudy better are - – cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing energy prices, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, wage bills are increasing, etc
Introduction to SWOT Analysis of Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Medicare Proactive, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Medicare Proactive 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China can be done for the following purposes –
1. Strategic planning using facts provided in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China case study
2. Improving business portfolio management of Medicare Proactive
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 Medicare Proactive
Strengths Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Medicare Proactive in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Medicare Proactive 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 Medicare Proactive in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Medicare Proactive is present in almost all the verticals within the industry. This has provided firm in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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.
Cross disciplinary teams
– Horizontal connected teams at the Medicare Proactive 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.
Superior customer experience
– The customer experience strategy of Medicare Proactive in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Medicare Proactive in the sector have low bargaining power. Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Medicare Proactive to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Medicare Proactive is one of the leading recruiters in the industry. Managers in the Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Medicare Proactive 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.
Successful track record of launching new products
– Medicare Proactive has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Medicare Proactive has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Medicare Proactive has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Medicare Proactive to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Medicare Proactive digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Medicare Proactive 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.
Learning organization
- Medicare Proactive 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 Medicare Proactive is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Medicare Proactive is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China are -
High operating costs
– Compare to the competitors, firm in the HBR case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Medicare Proactive 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Medicare Proactive is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China can leverage the sales team experience to cultivate customer relationships as Medicare Proactive is planning to shift buying processes online.
Interest costs
– Compare to the competition, Medicare Proactive 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.
Slow to strategic competitive environment developments
– As Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China HBR case study mentions - Medicare Proactive 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 bargaining power of channel partners
– Because of the regulatory requirements, Andrew Lee, Gilbert Wong suggests that, Medicare Proactive is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Medicare Proactive 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.
Need for greater diversity
– Medicare Proactive 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 Medicare Proactive 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.
Low market penetration in new markets
– Outside its home market of Medicare Proactive, firm in the HBR case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Medicare Proactive products
– To increase the profitability and margins on the products, Medicare Proactive needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China | 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Medicare Proactive 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.
Leveraging digital technologies
– Medicare Proactive 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.
Building a culture of innovation
– managers at Medicare Proactive 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Medicare Proactive 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 Medicare Proactive to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Medicare Proactive in the consumer business. Now Medicare Proactive can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Medicare Proactive 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, Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Medicare Proactive is facing challenges because of the dominance of functional experts in the organization. Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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.
Learning at scale
– Online learning technologies has now opened space for Medicare Proactive 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.
Developing new processes and practices
– Medicare Proactive 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.
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. Medicare Proactive can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Medicare Proactive 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
– Medicare Proactive can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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.
Loyalty marketing
– Medicare Proactive 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.
Threats Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Medicare Proactive 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.
Consumer confidence and its impact on Medicare Proactive 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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Medicare Proactive 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China .
High dependence on third party suppliers
– Medicare Proactive 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Medicare Proactive will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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 Medicare Proactive business can come under increasing regulations regarding data privacy, data security, etc.
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. Medicare Proactive needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Medicare Proactive.
Technology acceleration in Forth Industrial Revolution
– Medicare Proactive has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Medicare Proactive 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.
Stagnating economy with rate increase
– Medicare Proactive 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. Medicare Proactive can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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 Medicare Proactive needs to make to build a sustainable competitive advantage.