MassMEDIC: The Massachusetts Medical Device Industry Council SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MassMEDIC: The Massachusetts Medical Device Industry Council
Set in 2004, as Massachusetts Medical Device Industry Council (MassMEDIC) President Tom Sommer contemplates the future direction of a successful medical device cluster association. Focuses on the formation of cluster organizations and their roles and effectiveness, highlighting the importance of these organizations in enabling cross-cluster collaboration between firms, universities, regulators and other government officials, and other institutions. Details the events that led to the formation of MassMEDIC and the initial challenges the organization faced. Discusses the evolution of MassMEDIC's activities, from its formation in 1996 through 2004, and the views of different MassMEDIC stakeholders on the future direction of the organization. Provides detailed data about MassMEDIC and the Massachusetts medical device cluster to enable an evaluation of results and inform future direction.
Authors :: Willis Emmons, Michael E. Porter, Spencer Wallace
Swot Analysis of "MassMEDIC: The Massachusetts Medical Device Industry Council" written by Willis Emmons, Michael E. Porter, Spencer Wallace includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Massmedic Cluster facing as an external strategic factors. Some of the topics covered in MassMEDIC: The Massachusetts Medical Device Industry Council case study are - Strategic Management Strategies, Competition, Economic development, Networking, Operations management, Policy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MassMEDIC: The Massachusetts Medical Device Industry Council casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs,
increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of MassMEDIC: The Massachusetts Medical Device Industry Council
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MassMEDIC: The Massachusetts Medical Device Industry Council case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Massmedic Cluster, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Massmedic Cluster 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 MassMEDIC: The Massachusetts Medical Device Industry Council can be done for the following purposes –
1. Strategic planning using facts provided in MassMEDIC: The Massachusetts Medical Device Industry Council case study
2. Improving business portfolio management of Massmedic Cluster
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 Massmedic Cluster
Strengths MassMEDIC: The Massachusetts Medical Device Industry Council | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Massmedic Cluster in MassMEDIC: The Massachusetts Medical Device Industry Council Harvard Business Review case study are -
Strong track record of project management
– Massmedic Cluster is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– MassMEDIC: The Massachusetts Medical Device Industry Council firm has clearly differentiated products in the market place. This has enabled Massmedic Cluster to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Massmedic Cluster to invest into research and development (R&D) and innovation.
Training and development
– Massmedic Cluster has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MassMEDIC: The Massachusetts Medical Device Industry Council 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.
Learning organization
- Massmedic Cluster 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 Massmedic Cluster is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MassMEDIC: The Massachusetts Medical Device Industry Council Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Massmedic Cluster 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 MassMEDIC: The Massachusetts Medical Device Industry Council HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Massmedic Cluster is one of the leading recruiters in the industry. Managers in the MassMEDIC: The Massachusetts Medical Device Industry Council are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Massmedic Cluster digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Massmedic Cluster 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.
High brand equity
– Massmedic Cluster has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Massmedic Cluster to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Massmedic Cluster
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Massmedic Cluster does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Massmedic Cluster 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 Willis Emmons, Michael E. Porter, Spencer Wallace 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.
Innovation driven organization
– Massmedic Cluster is one of the most innovative firm in sector. Manager in MassMEDIC: The Massachusetts Medical Device Industry Council Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Massmedic Cluster in the sector have low bargaining power. MassMEDIC: The Massachusetts Medical Device Industry Council has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Massmedic Cluster to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses MassMEDIC: The Massachusetts Medical Device Industry Council | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MassMEDIC: The Massachusetts Medical Device Industry Council are -
Slow decision making process
– As mentioned earlier in the report, Massmedic Cluster 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. Massmedic Cluster 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Massmedic Cluster 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.
Low market penetration in new markets
– Outside its home market of Massmedic Cluster, firm in the HBR case study MassMEDIC: The Massachusetts Medical Device Industry Council needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Massmedic Cluster 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.
High cash cycle compare to competitors
Massmedic Cluster 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Massmedic Cluster is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MassMEDIC: The Massachusetts Medical Device Industry Council 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 operating costs
– Compare to the competitors, firm in the HBR case study MassMEDIC: The Massachusetts Medical Device Industry Council 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 Massmedic Cluster 's lucrative customers.
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 Massmedic Cluster supply chain. Even after few cautionary changes mentioned in the HBR case study - MassMEDIC: The Massachusetts Medical Device Industry Council, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Massmedic Cluster vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Massmedic Cluster has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - MassMEDIC: The Massachusetts Medical Device Industry Council should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Willis Emmons, Michael E. Porter, Spencer Wallace suggests that, Massmedic Cluster 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MassMEDIC: The Massachusetts Medical Device Industry Council, it seems that the employees of Massmedic Cluster don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities MassMEDIC: The Massachusetts Medical Device Industry Council | 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 MassMEDIC: The Massachusetts Medical Device Industry Council are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Massmedic Cluster 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
– Massmedic Cluster 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.
Manufacturing automation
– Massmedic Cluster 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.
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 Massmedic Cluster in the consumer business. Now Massmedic Cluster can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Massmedic Cluster is facing challenges because of the dominance of functional experts in the organization. MassMEDIC: The Massachusetts Medical Device Industry Council 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Massmedic Cluster in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Massmedic Cluster 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.
Using analytics as competitive advantage
– Massmedic Cluster 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 MassMEDIC: The Massachusetts Medical Device Industry Council - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Massmedic Cluster to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Massmedic Cluster 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.
Building a culture of innovation
– managers at Massmedic Cluster 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.
Buying journey improvements
– Massmedic Cluster can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MassMEDIC: The Massachusetts Medical Device Industry Council 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.
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. Massmedic Cluster can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Massmedic Cluster to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats MassMEDIC: The Massachusetts Medical Device Industry Council External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MassMEDIC: The Massachusetts Medical Device Industry Council are -
Environmental challenges
– Massmedic Cluster 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. Massmedic Cluster can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Massmedic Cluster 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.
Regulatory challenges
– Massmedic Cluster 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.
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 Massmedic Cluster business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Massmedic Cluster 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 MassMEDIC: The Massachusetts Medical Device Industry Council .
Shortening product life cycle
– it is one of the major threat that Massmedic Cluster is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Massmedic Cluster 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.
Consumer confidence and its impact on Massmedic Cluster 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.
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. Massmedic Cluster needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Massmedic Cluster 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MassMEDIC: The Massachusetts Medical Device Industry Council, Massmedic Cluster 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 .
Weighted SWOT Analysis of MassMEDIC: The Massachusetts Medical Device Industry Council 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 MassMEDIC: The Massachusetts Medical Device Industry Council 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 MassMEDIC: The Massachusetts Medical Device Industry Council 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 MassMEDIC: The Massachusetts Medical Device Industry Council 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 MassMEDIC: The Massachusetts Medical Device Industry Council 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 Massmedic Cluster needs to make to build a sustainable competitive advantage.