Deregulation and Regulatory Backlash in Health Care SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Deregulation and Regulatory Backlash in Health Care
The American health care system is undergoing a market and organizational transformation analogous to the deregulation of the transportation, communication, utility, and finance industries, with price competition replacing rate controls, new entrants displacing organizational incumbents, innovation disrupting stability, and individual choice supplanting governmental oversight. These turbulent changes are generating uncertainty, hostility, and a backlash towards re-regulation. This article compares the evolution of the health care sector with the experiences of other deregulated industries, highlighting four effects that cut across all sectors. Deregulation and the role of price competition has led everywhere to: lower costs, due to better capacity utilization and improved productivity; increased differentiation of prices and products, moving away from the one-size-fits-all patterns characteristic of regulated industries; dynamic changes in both market and organizational structures, culminating in consolidation into multi-product, geographically diversified firms; and political backlash, fueled by uncertainty, organized producer groups, and selected groups of consumers who do not benefit from the overall cost and product improvements.
Swot Analysis of "Deregulation and Regulatory Backlash in Health Care" written by James C. Robinson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Backlash Deregulation facing as an external strategic factors. Some of the topics covered in Deregulation and Regulatory Backlash in Health Care case study are - Strategic Management Strategies, Regulation and Technology & Operations.
Some of the macro environment factors that can be used to understand the Deregulation and Regulatory Backlash in Health Care casestudy better are - – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Deregulation and Regulatory Backlash in Health Care
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Deregulation and Regulatory Backlash in Health Care case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Backlash Deregulation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Backlash Deregulation 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 Deregulation and Regulatory Backlash in Health Care can be done for the following purposes –
1. Strategic planning using facts provided in Deregulation and Regulatory Backlash in Health Care case study
2. Improving business portfolio management of Backlash Deregulation
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Backlash Deregulation
Strengths Deregulation and Regulatory Backlash in Health Care | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Backlash Deregulation in Deregulation and Regulatory Backlash in Health Care Harvard Business Review case study are -
Analytics focus
– Backlash Deregulation 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 James C. Robinson 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Backlash Deregulation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Backlash Deregulation 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.
Training and development
– Backlash Deregulation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Deregulation and Regulatory Backlash in Health Care 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.
Low bargaining power of suppliers
– Suppliers of Backlash Deregulation in the sector have low bargaining power. Deregulation and Regulatory Backlash in Health Care has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Backlash Deregulation to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Deregulation and Regulatory Backlash in Health Care 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.
Learning organization
- Backlash Deregulation 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 Backlash Deregulation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Deregulation and Regulatory Backlash in Health Care Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Backlash Deregulation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Backlash Deregulation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Backlash Deregulation 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.
Diverse revenue streams
– Backlash Deregulation is present in almost all the verticals within the industry. This has provided firm in Deregulation and Regulatory Backlash in Health Care 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.
Innovation driven organization
– Backlash Deregulation is one of the most innovative firm in sector. Manager in Deregulation and Regulatory Backlash in Health Care Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Backlash Deregulation is one of the leading recruiters in the industry. Managers in the Deregulation and Regulatory Backlash in Health Care are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Backlash Deregulation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Backlash Deregulation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Deregulation and Regulatory Backlash in Health Care | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Deregulation and Regulatory Backlash in Health Care are -
Interest costs
– Compare to the competition, Backlash Deregulation 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Deregulation and Regulatory Backlash in Health Care, is just above the industry average. Backlash Deregulation 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.
No frontier risks strategy
– After analyzing the HBR case study Deregulation and Regulatory Backlash in Health Care, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
High bargaining power of channel partners
– Because of the regulatory requirements, James C. Robinson suggests that, Backlash Deregulation 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 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 Backlash Deregulation supply chain. Even after few cautionary changes mentioned in the HBR case study - Deregulation and Regulatory Backlash in Health Care, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Backlash Deregulation vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Backlash Deregulation products
– To increase the profitability and margins on the products, Backlash Deregulation needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Backlash Deregulation, firm in the HBR case study Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care 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 Backlash Deregulation 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Backlash Deregulation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Deregulation and Regulatory Backlash in Health Care, in the dynamic environment Backlash Deregulation has struggled to respond to the nimble upstart competition. Backlash Deregulation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care can leverage the sales team experience to cultivate customer relationships as Backlash Deregulation is planning to shift buying processes online.
Opportunities Deregulation and Regulatory Backlash in Health Care | 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 Deregulation and Regulatory Backlash in Health Care are -
Developing new processes and practices
– Backlash Deregulation can develop new processes and procedures in Technology & Operations 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.
Learning at scale
– Online learning technologies has now opened space for Backlash Deregulation 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.
Leveraging digital technologies
– Backlash Deregulation 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Backlash Deregulation 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, Deregulation and Regulatory Backlash in Health Care, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Backlash Deregulation 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 Deregulation and Regulatory Backlash in Health Care - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Backlash Deregulation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Backlash Deregulation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Deregulation and Regulatory Backlash in Health Care 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Backlash Deregulation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Backlash Deregulation in the consumer business. Now Backlash Deregulation can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Backlash Deregulation 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. Backlash Deregulation 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Backlash Deregulation is facing challenges because of the dominance of functional experts in the organization. Deregulation and Regulatory Backlash in Health Care 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.
Loyalty marketing
– Backlash Deregulation 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.
Creating value in data economy
– The success of analytics program of Backlash Deregulation has opened avenues for new revenue streams for the organization in the industry. This can help Backlash Deregulation to build a more holistic ecosystem as suggested in the Deregulation and Regulatory Backlash in Health Care case study. Backlash Deregulation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Backlash Deregulation 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 Technology & Operations segment.
Threats Deregulation and Regulatory Backlash in Health Care External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Deregulation and Regulatory Backlash in Health Care are -
High dependence on third party suppliers
– Backlash Deregulation 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.
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.
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 Backlash Deregulation in the Technology & Operations 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. Backlash Deregulation needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Backlash Deregulation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Backlash Deregulation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Backlash Deregulation in the Technology & Operations industry. The Technology & Operations 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
– Backlash Deregulation 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 Technology & Operations industry regulations.
Technology acceleration in Forth Industrial Revolution
– Backlash Deregulation has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Backlash Deregulation needs to keep up with the evolution of technology in the Technology & Operations 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 Backlash Deregulation 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.
Stagnating economy with rate increase
– Backlash Deregulation 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Backlash Deregulation 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 Deregulation and Regulatory Backlash in Health Care .
Weighted SWOT Analysis of Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care 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 Deregulation and Regulatory Backlash in Health Care 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 Backlash Deregulation needs to make to build a sustainable competitive advantage.
