Case Study Description of ProsFit: A Fitting Solution
This case study features ProsFit, a European start-up company founded in 2013 that used breakthrough technology - Computer Aided Design (CAD) and 3D printing - to transform the way in which sockets for prosthetic limbs are produced. It promised to reduce fitting times considerably, improve comfort and cut production costs, helping to meet growing demand. Companies were registered in Bulgaria and in the UK. Proof of concept was established in April 2014, and ethics approval in the UK was granted. Two successful rounds of fundraising were completed at the time of publication of this case study in late 2015, and there were seven employees. It is a family firm, having been co-founded by father-and-son team Alan and Chris Hutchison. The latter is a double amputee and user of prosthetic limbs. Alan Hutchison is an experienced business developer, with a degree in Engineering Science from the University of Oxford. The decision to start the company stemmed from concern about the pain and discomfort Chris was experiencing with a prosthetic limb fitted traditionally as well as the lengthy time-to-comfort of the fitting process. Software scanning and 3D printing technology replaced the artisanal approach used for sculpting sockets. The company was set up to be both commercial and philanthropic, using profits from developed countries to subsidize sockets in developing nations. First invoices were issued in 2015. The founders estimated they had an18- to 24-month first-mover advantage from mid-2015.
Authors :: Denise H. Kenyon-Rouvinez, Philip Whiteley
Topics :: Strategy & Execution
Tags :: International business, Risk management, Social enterprise, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "ProsFit: A Fitting Solution" written by Denise H. Kenyon-Rouvinez, Philip Whiteley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sockets Prosthetic facing as an external strategic factors. Some of the topics covered in ProsFit: A Fitting Solution case study are - Strategic Management Strategies, International business, Risk management, Social enterprise and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ProsFit: A Fitting Solution casestudy better are - – increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing commodity prices, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of ProsFit: A Fitting Solution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ProsFit: A Fitting Solution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sockets Prosthetic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sockets Prosthetic 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 ProsFit: A Fitting Solution can be done for the following purposes –
1. Strategic planning using facts provided in ProsFit: A Fitting Solution case study
2. Improving business portfolio management of Sockets Prosthetic
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 Sockets Prosthetic
Strengths ProsFit: A Fitting Solution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sockets Prosthetic in ProsFit: A Fitting Solution Harvard Business Review case study are -
High switching costs
– The high switching costs that Sockets Prosthetic 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.
Ability to recruit top talent
– Sockets Prosthetic is one of the leading recruiters in the industry. Managers in the ProsFit: A Fitting Solution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Sockets Prosthetic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Sockets Prosthetic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ProsFit: A Fitting Solution 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.
Innovation driven organization
– Sockets Prosthetic is one of the most innovative firm in sector. Manager in ProsFit: A Fitting Solution 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 Sockets Prosthetic in the sector have low bargaining power. ProsFit: A Fitting Solution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sockets Prosthetic to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Sockets Prosthetic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sockets Prosthetic 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.
Learning organization
- Sockets Prosthetic 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 Sockets Prosthetic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ProsFit: A Fitting Solution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Sockets Prosthetic 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 Denise H. Kenyon-Rouvinez, Philip Whiteley 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.
Ability to lead change in Strategy & Execution field
– Sockets Prosthetic 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 Sockets Prosthetic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Sockets Prosthetic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sockets Prosthetic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Sockets Prosthetic 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 ProsFit: A Fitting Solution HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses ProsFit: A Fitting Solution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ProsFit: A Fitting Solution are -
Capital Spending Reduction
– Even during the low interest decade, Sockets Prosthetic 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 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 Sockets Prosthetic supply chain. Even after few cautionary changes mentioned in the HBR case study - ProsFit: A Fitting Solution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sockets Prosthetic vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Sockets Prosthetic 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.
Products dominated business model
– Even though Sockets Prosthetic 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 - ProsFit: A Fitting Solution should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As ProsFit: A Fitting Solution HBR case study mentions - Sockets Prosthetic 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.
Increasing silos among functional specialists
– The organizational structure of Sockets Prosthetic is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Sockets Prosthetic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sockets Prosthetic to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Sockets Prosthetic, firm in the HBR case study ProsFit: A Fitting Solution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sockets Prosthetic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ProsFit: A Fitting Solution can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ProsFit: A Fitting Solution, is just above the industry average. Sockets Prosthetic 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.
Lack of clear differentiation of Sockets Prosthetic products
– To increase the profitability and margins on the products, Sockets Prosthetic needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Sockets Prosthetic 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. Sockets Prosthetic 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.
Opportunities ProsFit: A Fitting Solution | 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 ProsFit: A Fitting Solution are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Sockets Prosthetic 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.
Learning at scale
– Online learning technologies has now opened space for Sockets Prosthetic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sockets Prosthetic can use these opportunities to build new business models that can help the communities that Sockets Prosthetic operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Sockets Prosthetic 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. Sockets Prosthetic 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.
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. Sockets Prosthetic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Sockets Prosthetic 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.
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. Sockets Prosthetic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Sockets Prosthetic 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 ProsFit: A Fitting Solution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sockets Prosthetic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sockets Prosthetic 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, ProsFit: A Fitting Solution, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Sockets Prosthetic has opened avenues for new revenue streams for the organization in the industry. This can help Sockets Prosthetic to build a more holistic ecosystem as suggested in the ProsFit: A Fitting Solution case study. Sockets Prosthetic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Sockets Prosthetic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ProsFit: A Fitting Solution 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.
Building a culture of innovation
– managers at Sockets Prosthetic 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.
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 Sockets Prosthetic 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 ProsFit: A Fitting Solution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ProsFit: A Fitting Solution are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ProsFit: A Fitting Solution, Sockets Prosthetic 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 .
Stagnating economy with rate increase
– Sockets Prosthetic 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sockets Prosthetic 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 ProsFit: A Fitting Solution .
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 Sockets Prosthetic business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Sockets Prosthetic 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 Sockets Prosthetic 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.
Increasing wage structure of Sockets Prosthetic
– 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 Sockets Prosthetic.
High dependence on third party suppliers
– Sockets Prosthetic 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 Sockets Prosthetic 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sockets Prosthetic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Sockets Prosthetic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Sockets Prosthetic has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Sockets Prosthetic 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 ProsFit: A Fitting Solution 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 ProsFit: A Fitting Solution 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 ProsFit: A Fitting Solution 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 ProsFit: A Fitting Solution 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 ProsFit: A Fitting Solution 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 Sockets Prosthetic needs to make to build a sustainable competitive advantage.
