Swot Analysis of "Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand" written by Nancy Sousa, Richard Demartino, Stanley Widrick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kodak's Imaging facing as an external strategic factors. Some of the topics covered in Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand case study are - Strategic Management Strategies, Health, International business, Marketing, Organizational structure, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand casestudy better are - – geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
supply chains are disrupted by pandemic , increasing commodity prices, etc
Introduction to SWOT Analysis of Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kodak's Imaging, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kodak's Imaging 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand can be done for the following purposes –
1. Strategic planning using facts provided in Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand case study
2. Improving business portfolio management of Kodak's Imaging
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 Kodak's Imaging
Strengths Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kodak's Imaging in Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand Harvard Business Review case study are -
Highly skilled collaborators
– Kodak's Imaging 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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.
Analytics focus
– Kodak's Imaging 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 Nancy Sousa, Richard Demartino, Stanley Widrick 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand firm has clearly differentiated products in the market place. This has enabled Kodak's Imaging to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Kodak's Imaging to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Kodak's Imaging has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Kodak's Imaging 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.
Strong track record of project management
– Kodak's Imaging is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Kodak's Imaging has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kodak's Imaging to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Kodak's Imaging 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 Kodak's Imaging is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Kodak's Imaging 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.
Organizational Resilience of Kodak's Imaging
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kodak's Imaging does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Kodak's Imaging is one of the leading recruiters in the industry. Managers in the Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Imaging in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand are -
Aligning sales with marketing
– It come across in the case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand can leverage the sales team experience to cultivate customer relationships as Kodak's Imaging is planning to shift buying processes online.
Need for greater diversity
– Kodak's Imaging 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.
No frontier risks strategy
– After analyzing the HBR case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand, is just above the industry average. Kodak's Imaging 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.
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 Kodak's Imaging supply chain. Even after few cautionary changes mentioned in the HBR case study - Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kodak's Imaging vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Kodak's Imaging products
– To increase the profitability and margins on the products, Kodak's Imaging needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Kodak's Imaging 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.
Low market penetration in new markets
– Outside its home market of Kodak's Imaging, firm in the HBR case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Nancy Sousa, Richard Demartino, Stanley Widrick suggests that, Kodak's Imaging 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Imaging 's lucrative customers.
Interest costs
– Compare to the competition, Kodak's Imaging 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.
Opportunities Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand | 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand are -
Manufacturing automation
– Kodak's Imaging 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.
Better consumer reach
– The expansion of the 5G network will help Kodak's Imaging to increase its market reach. Kodak's Imaging 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, Kodak's Imaging 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, Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand, 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, Kodak's Imaging 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kodak's Imaging can use these opportunities to build new business models that can help the communities that Kodak's Imaging operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Kodak's Imaging 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.
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. Kodak's Imaging can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Kodak's Imaging has opened avenues for new revenue streams for the organization in the industry. This can help Kodak's Imaging to build a more holistic ecosystem as suggested in the Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand case study. Kodak's Imaging can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Kodak's Imaging can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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.
Leveraging digital technologies
– Kodak's Imaging 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.
Developing new processes and practices
– Kodak's Imaging 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.
Loyalty marketing
– Kodak's Imaging 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kodak's Imaging can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand, Kodak's Imaging 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 .
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.
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. Kodak's Imaging can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Kodak's Imaging in the Strategy & Execution sector and impact the bottomline of the organization.
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. Kodak's Imaging needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Kodak's Imaging 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. Kodak's Imaging can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Kodak's Imaging 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kodak's Imaging with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Stagnating economy with rate increase
– Kodak's Imaging 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.
High dependence on third party suppliers
– Kodak's Imaging 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kodak's Imaging 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.
Regulatory challenges
– Kodak's Imaging 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.
Weighted SWOT Analysis of Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Health Imaging Division in Asia (B): The Crisis in Thailand 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 Kodak's Imaging needs to make to build a sustainable competitive advantage.