Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?
Healthware, a digital communication agency specializing in healthcare, is based in Salerno Italy. The firm has 72 employees in two countries as well as clients in 14 countries. The case illustrates the location trade-offs of operating - and growing - a global digital company far from the epicenter of Italian business. The theme is universal. Once the firm is far from a nation's epicenter, a dynamism may be absent but the advantages are quite tangible: lower costs and employee stability. This teaching case is based on actual companies, people, and events, though some details have been dramatized or disguised.
Swot Analysis of "Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?" written by Erran Carmel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Healthware Epicenter facing as an external strategic factors. Some of the topics covered in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? case study are - Strategic Management Strategies, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing energy prices, technology disruption, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
increasing household debt because of falling income levels, geopolitical disruptions, etc
Introduction to SWOT Analysis of Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Healthware Epicenter, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Healthware Epicenter 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? can be done for the following purposes –
1. Strategic planning using facts provided in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? case study
2. Improving business portfolio management of Healthware Epicenter
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 Healthware Epicenter
Strengths Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Healthware Epicenter in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? Harvard Business Review case study are -
Successful track record of launching new products
– Healthware Epicenter has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Healthware Epicenter 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)
– Healthware Epicenter 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Healthware Epicenter in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Healthware Epicenter is present in almost all the verticals within the industry. This has provided firm in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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.
High brand equity
– Healthware Epicenter has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Healthware Epicenter to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Healthware Epicenter is one of the most innovative firm in sector. Manager in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Healthware Epicenter 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 Healthware Epicenter is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Healthware Epicenter 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Healthware Epicenter is one of the leading recruiters in the industry. Managers in the Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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.
Cross disciplinary teams
– Horizontal connected teams at the Healthware Epicenter 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Healthware Epicenter digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Healthware Epicenter 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.
Weaknesses Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? are -
Interest costs
– Compare to the competition, Healthware Epicenter 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.
Lack of clear differentiation of Healthware Epicenter products
– To increase the profitability and margins on the products, Healthware Epicenter needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Healthware Epicenter 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 - Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Healthware Epicenter 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. Healthware Epicenter 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware Epicenter 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Healthware Epicenter is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Healthware Epicenter 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.
No frontier risks strategy
– After analyzing the HBR case study Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?, 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.
Slow to strategic competitive environment developments
– As Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? HBR case study mentions - Healthware Epicenter 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.
Capital Spending Reduction
– Even during the low interest decade, Healthware Epicenter 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 bargaining power of channel partners
– Because of the regulatory requirements, Erran Carmel suggests that, Healthware Epicenter 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.
Opportunities Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? | 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? are -
Leveraging digital technologies
– Healthware Epicenter 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Healthware Epicenter is facing challenges because of the dominance of functional experts in the organization. Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Healthware Epicenter 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Healthware Epicenter 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, Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Healthware Epicenter can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Healthware Epicenter can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Healthware Epicenter 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.
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 Healthware Epicenter in the consumer business. Now Healthware Epicenter can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Healthware Epicenter 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.
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. Healthware Epicenter can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Healthware Epicenter 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. Healthware Epicenter 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Healthware Epicenter in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Buying journey improvements
– Healthware Epicenter can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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.
Threats Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? are -
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
– Healthware Epicenter 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.
Shortening product life cycle
– it is one of the major threat that Healthware Epicenter is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Healthware Epicenter in the Technology & Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm?, Healthware Epicenter may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
High dependence on third party suppliers
– Healthware Epicenter 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Healthware Epicenter with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Healthware Epicenter 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
– Healthware Epicenter 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. Healthware Epicenter can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Healthware Epicenter demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Healthware Epicenter 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Healthware Epicenter.
Regulatory challenges
– Healthware Epicenter 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.
Weighted SWOT Analysis of Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware S.p.A. - From an Underdeveloped Region of Italy - Can it be a Global Firm? 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 Healthware Epicenter needs to make to build a sustainable competitive advantage.
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