Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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 - – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, there is backlash against globalization, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, 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 -
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.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China firm has clearly differentiated products in the market place. This has enabled Medicare Proactive to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Medicare Proactive to invest into research and development (R&D) and innovation.
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.
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.
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.
Effective Research and Development (R&D)
– Medicare Proactive 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Medicare Proactive
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Medicare Proactive does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Analytics focus
– Medicare Proactive 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 Andrew Lee, Gilbert Wong 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.
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 -
Capital Spending Reduction
– Even during the low interest decade, Medicare Proactive 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.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, is just above the industry average. Medicare Proactive 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.
Increasing silos among functional specialists
– The organizational structure of Medicare Proactive is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Medicare Proactive needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Medicare Proactive to focus more on services rather than just following the product 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Medicare Proactive 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. Medicare Proactive 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.
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.
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 Medicare Proactive supply chain. Even after few cautionary changes mentioned in the HBR case study - Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Medicare Proactive vulnerable to further global disruptions in South East Asia.
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 -
Creating value in data economy
– The success of analytics program of Medicare Proactive has opened avenues for new revenue streams for the organization in the industry. This can help Medicare Proactive to build a more holistic ecosystem as suggested in the Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China case study. Medicare Proactive can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Medicare Proactive can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
Manufacturing automation
– Medicare Proactive 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.
Better consumer reach
– The expansion of the 5G network will help Medicare Proactive to increase its market reach. Medicare Proactive 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.
Using analytics as competitive advantage
– Medicare Proactive 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Medicare Proactive to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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 -
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.
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.
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 Medicare Proactive in the Strategy & Execution sector and impact the bottomline 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 Medicare Proactive.
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.
Increasing wage structure of Medicare Proactive
– 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 Medicare Proactive.
Environmental challenges
– Medicare Proactive 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. Medicare Proactive can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, Medicare Proactive 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 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.
Regulatory challenges
– Medicare Proactive 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.
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.