Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry
By the mid-2000s, no segment of the $180 billion global medical device industry was as dynamic as the market for drug eluting stents (DESs). In the United States, which accounted for nearly three-quarters of the total DES market, only two companies had regulatory approval to sell the small devices: Johnson & Johnson and Boston Scientific. In combination, these two organizations expected 2005 DES sales of approximately $5.5 billion--an increase of 36% from 2004. Forecasts called for the segment to exceed $7 billion by 2008. Driven in part by its size, the DES market was among the most competitive and challenging sectors in the medical device industry. The competitive landscape was marked by intense rivalries and plagued by fierce litigation over intellectual property. Yet, it was also characterized by complex intercompany partnerships, collaboration, and licensing deals. Although DESs had been shown to significantly reduce restenosis rates, new safety concerns were emerging related to the development of life threatening blood clots linked to DESs. Some controversy also existed regarding the cost/benefit of DESs. And product recalls and program failures were common as companies sought to bring new DES technologies to market. Against this backdrop, the segment was characterized by dramatic swings in market share. Despite all of this, the future for DESs looked promising.
Swot Analysis of "Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry" written by Stefanos Zenios, Lyn Denend includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dess Des facing as an external strategic factors. Some of the topics covered in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry case study are - Strategic Management Strategies, Financial markets and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry casestudy better are - – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, technology disruption, wage bills are increasing, cloud computing is disrupting traditional business models, there is backlash against globalization, increasing commodity prices,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dess Des, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry can be done for the following purposes –
1. Strategic planning using facts provided in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry case study
2. Improving business portfolio management of Dess Des
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 Dess Des
Strengths Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dess Des in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dess Des digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dess Des 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.
Highly skilled collaborators
– Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Dess Des has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dess Des 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.
Organizational Resilience of Dess Des
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dess Des does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Dess Des has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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.
Ability to lead change in Strategy & Execution field
– Dess Des 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 Dess Des in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Dess Des is one of the leading recruiters in the industry. Managers in the Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Dess Des is present in almost all the verticals within the industry. This has provided firm in Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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.
Effective Research and Development (R&D)
– Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Dess Des 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 Dess Des in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry firm has clearly differentiated products in the market place. This has enabled Dess Des to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dess Des to invest into research and development (R&D) and innovation.
Weaknesses Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry are -
Skills based hiring
– The stress on hiring functional specialists at Dess Des 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Dess Des 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.
Capital Spending Reduction
– Even during the low interest decade, Dess Des 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.
Increasing silos among functional specialists
– The organizational structure of Dess Des is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Dess Des needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dess Des to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Dess Des 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.
Low market penetration in new markets
– Outside its home market of Dess Des, firm in the HBR case study Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Dess Des 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.
Aligning sales with marketing
– It come across in the case study Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry can leverage the sales team experience to cultivate customer relationships as Dess Des is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry HBR case study mentions - Dess Des 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, Stefanos Zenios, Lyn Denend suggests that, Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry, it seems that the employees of Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry | 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Dess Des can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dess Des is facing challenges because of the dominance of functional experts in the organization. Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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.
Creating value in data economy
– The success of analytics program of Dess Des has opened avenues for new revenue streams for the organization in the industry. This can help Dess Des to build a more holistic ecosystem as suggested in the Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry case study. Dess Des can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Dess Des can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dess Des 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dess Des can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Dess Des 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.
Developing new processes and practices
– Dess Des 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.
Better consumer reach
– The expansion of the 5G network will help Dess Des to increase its market reach. Dess Des 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.
Learning at scale
– Online learning technologies has now opened space for Dess Des 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.
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. Dess Des 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. Dess Des 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.
Using analytics as competitive advantage
– Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dess Des to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Dess Des 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.
Threats Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry are -
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 Dess Des.
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. Dess Des 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.
Stagnating economy with rate increase
– Dess Des 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.
Increasing wage structure of Dess Des
– 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 Dess Des.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dess Des with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Dess Des 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 Dess Des business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Dess Des has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dess Des 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.
Consumer confidence and its impact on Dess Des 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dess Des 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry, Dess Des 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 .
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.
Shortening product life cycle
– it is one of the major threat that Dess Des is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Drug Eluting Stents: A Paradigm Shift in the Medical Device Industry 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 Dess Des needs to make to build a sustainable competitive advantage.
