Endius Inc.: Alternatives for Developing a New Medical Device SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Endius Inc.: Alternatives for Developing a New Medical Device
Endius Inc. is a start-up company entering the medical products market. Endius has developed a design and a working prototype for a new and promising endoscopic surgical instrument--steerable surgical forceps. Endius recently hired a new president, Tom Davison, who is determined to move Endius from the research and development phase into product commercialization and launch. To do so, he needs to achieve two related objectives: complete development of a technically and financially viable product and secure funding to address the cash burn typical of a start-up firm. Davison is seriously considering two product development alternatives: developing the steerable forceps using an in-house staff or partnering with an outside product development consultancy that he used previously.
Authors :: Julie H. Hertenstein, Marjorie B. Platt
Swot Analysis of "Endius Inc.: Alternatives for Developing a New Medical Device" written by Julie H. Hertenstein, Marjorie B. Platt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Endius Davison facing as an external strategic factors. Some of the topics covered in Endius Inc.: Alternatives for Developing a New Medical Device case study are - Strategic Management Strategies, Decision making, Design, Financial analysis, Operations management, Product development, Venture capital and Technology & Operations.
Some of the macro environment factors that can be used to understand the Endius Inc.: Alternatives for Developing a New Medical Device casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Endius Inc.: Alternatives for Developing a New Medical Device
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Endius Inc.: Alternatives for Developing a New Medical Device case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Endius Davison, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device can be done for the following purposes –
1. Strategic planning using facts provided in Endius Inc.: Alternatives for Developing a New Medical Device case study
2. Improving business portfolio management of Endius Davison
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 Endius Davison
Strengths Endius Inc.: Alternatives for Developing a New Medical Device | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Endius Davison in Endius Inc.: Alternatives for Developing a New Medical Device Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– Endius Inc.: Alternatives for Developing a New Medical Device firm has clearly differentiated products in the market place. This has enabled Endius Davison to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Endius Davison to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Endius Davison has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Endius Inc.: Alternatives for Developing a New Medical Device 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.
Successful track record of launching new products
– Endius Davison has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Endius Davison 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)
– Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Endius Inc.: Alternatives for Developing a New Medical Device 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.
High switching costs
– The high switching costs that Endius Davison 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.
Diverse revenue streams
– Endius Davison is present in almost all the verticals within the industry. This has provided firm in Endius Inc.: Alternatives for Developing a New Medical Device 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.
Cross disciplinary teams
– Horizontal connected teams at the Endius Davison 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.
Ability to lead change in Technology & Operations field
– Endius Davison 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 Endius Davison in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Endius Davison has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Endius Davison to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Endius Davison
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Endius Davison does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Endius Inc.: Alternatives for Developing a New Medical Device | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Endius Inc.: Alternatives for Developing a New Medical Device are -
Interest costs
– Compare to the competition, Endius Davison 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Endius Davison 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.
Need for greater diversity
– Endius Davison 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.
Lack of clear differentiation of Endius Davison products
– To increase the profitability and margins on the products, Endius Davison needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Endius Davison supply chain. Even after few cautionary changes mentioned in the HBR case study - Endius Inc.: Alternatives for Developing a New Medical Device, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Endius Davison vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Endius Davison is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Endius Inc.: Alternatives for Developing a New Medical Device can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Inc.: Alternatives for Developing a New Medical Device can leverage the sales team experience to cultivate customer relationships as Endius Davison is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Endius Inc.: Alternatives for Developing a New Medical Device HBR case study mentions - Endius Davison 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.
Products dominated business model
– Even though Endius Davison 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 - Endius Inc.: Alternatives for Developing a New Medical Device should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Endius Inc.: Alternatives for Developing a New Medical Device, is just above the industry average. Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device, 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.
Opportunities Endius Inc.: Alternatives for Developing a New Medical Device | 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 Endius Inc.: Alternatives for Developing a New Medical Device are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Endius Davison 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, Endius Inc.: Alternatives for Developing a New Medical Device, 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
– Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Endius Davison to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Endius Davison 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Endius Davison 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 Endius Davison in the consumer business. Now Endius Davison can target international markets with far fewer capital restrictions requirements than the existing system.
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. Endius Davison can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Endius Davison 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. Endius Davison 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 Endius Davison 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Endius Davison to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Endius Davison to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Endius Davison is facing challenges because of the dominance of functional experts in the organization. Endius Inc.: Alternatives for Developing a New Medical Device 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
– Endius Davison 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.
Learning at scale
– Online learning technologies has now opened space for Endius Davison 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
– Endius Davison 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.
Threats Endius Inc.: Alternatives for Developing a New Medical Device External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Endius Inc.: Alternatives for Developing a New Medical Device are -
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 Endius Davison.
Consumer confidence and its impact on Endius Davison 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.
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 Endius Davison in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Endius Davison 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.
Environmental challenges
– Endius Davison 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. Endius Davison can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Endius Davison can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Endius Davison business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Endius Davison 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.
Stagnating economy with rate increase
– Endius Davison 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Endius Inc.: Alternatives for Developing a New Medical Device, Endius Davison 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 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. Endius Davison needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Endius Davison is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Endius Davison 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 Endius Inc.: Alternatives for Developing a New Medical Device .
Weighted SWOT Analysis of Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Davison needs to make to build a sustainable competitive advantage.