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 - – central banks are concerned over increasing inflation, increasing energy prices, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
geopolitical disruptions, increasing household debt because of falling income levels, 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 -
Highly skilled collaborators
– Medicare Proactive 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 Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
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.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China 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.
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.
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.
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.
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 -
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 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.
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.
No frontier risks strategy
– After analyzing the HBR case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, 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 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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Medicare Proactive 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Proactive Medicare Enterprise (HK) Ltd.: Providing Healthcare in Mainland China, in the dynamic environment Medicare Proactive has struggled to respond to the nimble upstart competition. Medicare Proactive has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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 -
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 Medicare Proactive 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.
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.
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.
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.
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.
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.
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.
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.
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. Medicare Proactive 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. Medicare Proactive 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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Medicare Proactive with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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.