Case Study Description of Cytyc: Transforming Cervical Cancer Testing
The case relates the growth story of a transformative medical diagnostics company as it moves from idea to maturity at a critical time when leaders must determine what to do about the falling stock price. As the case unfolds, it shows how an idea for transforming cervical cancer testing was converted to a proof-of-concept, followed by years of scientific and technological research to create products. The case portrays gaining FDA approval while short on resources, persuading skeptical insurers to pay for a new diagnostic test, and managing the challenges of subsequent growth, profit, and maturity while facing the emergence of new technologies and competitors. Students are asked to adopt the role of a newly hired vice president of business development to decide how to address the company's situation. They must identify and frame the problem, generate alternatives and evaluate them critically, then prepare recommendations for an upcoming board meeting. Students take into account industry and company data as well as strategic realities. They examine what makes creating, growing, and managing a science- and medicine-based company different from doing so with other technology companies, especially consumer hardware and software with which students tend to be most familiar. Color printing of the case is recommended for clear interpretation of exhibits.
Swot Analysis of "Cytyc: Transforming Cervical Cancer Testing" written by Gaurab Bhardwaj, Matthew Regele includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cervical Maturity facing as an external strategic factors. Some of the topics covered in Cytyc: Transforming Cervical Cancer Testing case study are - Strategic Management Strategies, Entrepreneurship, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Cytyc: Transforming Cervical Cancer Testing casestudy better are - – central banks are concerned over increasing inflation, there is backlash against globalization, increasing commodity prices, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Cytyc: Transforming Cervical Cancer Testing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cytyc: Transforming Cervical Cancer Testing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cervical Maturity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cervical Maturity 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 Cytyc: Transforming Cervical Cancer Testing can be done for the following purposes –
1. Strategic planning using facts provided in Cytyc: Transforming Cervical Cancer Testing case study
2. Improving business portfolio management of Cervical Maturity
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 Cervical Maturity
Strengths Cytyc: Transforming Cervical Cancer Testing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cervical Maturity in Cytyc: Transforming Cervical Cancer Testing Harvard Business Review case study are -
Analytics focus
– Cervical Maturity 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 Gaurab Bhardwaj, Matthew Regele 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.
Cross disciplinary teams
– Horizontal connected teams at the Cervical Maturity 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.
Strong track record of project management
– Cervical Maturity is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Cervical Maturity is present in almost all the verticals within the industry. This has provided firm in Cytyc: Transforming Cervical Cancer Testing 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Cytyc: Transforming Cervical Cancer Testing firm has clearly differentiated products in the market place. This has enabled Cervical Maturity to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cervical Maturity to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Cervical Maturity has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cervical Maturity 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.
Effective Research and Development (R&D)
– Cervical Maturity 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 Cytyc: Transforming Cervical Cancer Testing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Cervical Maturity is one of the leading recruiters in the industry. Managers in the Cytyc: Transforming Cervical Cancer Testing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Cervical Maturity
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cervical Maturity does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Cervical Maturity in the sector have low bargaining power. Cytyc: Transforming Cervical Cancer Testing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cervical Maturity to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Cytyc: Transforming Cervical Cancer Testing 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.
Highly skilled collaborators
– Cervical Maturity 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 Cytyc: Transforming Cervical Cancer Testing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Cytyc: Transforming Cervical Cancer Testing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cytyc: Transforming Cervical Cancer Testing are -
Slow decision making process
– As mentioned earlier in the report, Cervical Maturity 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. Cervical Maturity 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cervical Maturity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cytyc: Transforming Cervical Cancer Testing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Cervical Maturity 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 - Cytyc: Transforming Cervical Cancer Testing should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Cytyc: Transforming Cervical Cancer Testing 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 Cytyc: Transforming Cervical Cancer Testing can leverage the sales team experience to cultivate customer relationships as Cervical Maturity is planning to shift buying processes online.
High cash cycle compare to competitors
Cervical Maturity 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.
Increasing silos among functional specialists
– The organizational structure of Cervical Maturity is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cervical Maturity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cervical Maturity to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Gaurab Bhardwaj, Matthew Regele suggests that, Cervical Maturity 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.
Low market penetration in new markets
– Outside its home market of Cervical Maturity, firm in the HBR case study Cytyc: Transforming Cervical Cancer Testing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Cytyc: Transforming Cervical Cancer Testing 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 Cervical Maturity 's lucrative customers.
Need for greater diversity
– Cervical Maturity 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cervical Maturity 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.
Opportunities Cytyc: Transforming Cervical Cancer Testing | 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 Cytyc: Transforming Cervical Cancer Testing are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cervical Maturity 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 Cervical Maturity to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Cervical Maturity 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 Cytyc: Transforming Cervical Cancer Testing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cervical Maturity to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Cervical Maturity 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 Cervical Maturity can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Cervical Maturity to increase its market reach. Cervical Maturity 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cervical Maturity can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Cytyc: Transforming Cervical Cancer Testing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cervical Maturity 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cervical Maturity 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.
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 Cervical Maturity 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.
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. Cervical Maturity can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Cervical Maturity in the consumer business. Now Cervical Maturity can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Cervical Maturity has opened avenues for new revenue streams for the organization in the industry. This can help Cervical Maturity to build a more holistic ecosystem as suggested in the Cytyc: Transforming Cervical Cancer Testing case study. Cervical Maturity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Cervical Maturity has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Cytyc: Transforming Cervical Cancer Testing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cytyc: Transforming Cervical Cancer Testing are -
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 Cervical Maturity business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cytyc: Transforming Cervical Cancer Testing, Cervical Maturity 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cervical Maturity with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Cervical Maturity
– 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 Cervical Maturity.
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. Cervical Maturity 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.
Environmental challenges
– Cervical Maturity 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. Cervical Maturity can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Cervical Maturity in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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. Cervical Maturity can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Cervical Maturity 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.
Stagnating economy with rate increase
– Cervical Maturity 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cervical Maturity 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 acceleration in Forth Industrial Revolution
– Cervical Maturity has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Cervical Maturity 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.
Weighted SWOT Analysis of Cytyc: Transforming Cervical Cancer Testing 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 Cytyc: Transforming Cervical Cancer Testing 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 Cytyc: Transforming Cervical Cancer Testing 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 Cytyc: Transforming Cervical Cancer Testing 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 Cytyc: Transforming Cervical Cancer Testing 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 Cervical Maturity needs to make to build a sustainable competitive advantage.