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 - – central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing transportation and logistics costs, there is backlash against globalization, technology disruption, there is increasing trade war between United States & China,
increasing energy prices, talent flight as more people leaving formal jobs, 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 -
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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Endius Davison digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Endius Davison 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.
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.
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.
Learning organization
- Endius Davison 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 Endius Davison is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Endius Inc.: Alternatives for Developing a New Medical Device Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Ability to recruit top talent
– Endius Davison is one of the leading recruiters in the industry. Managers in the Endius Inc.: Alternatives for Developing a New Medical Device are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Strong track record of project management
– Endius Davison is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Endius Davison 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 Julie H. Hertenstein, Marjorie B. Platt 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.
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.
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.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Endius Inc.: Alternatives for Developing a New Medical Device, it seems that the employees of Endius Davison don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Julie H. Hertenstein, Marjorie B. Platt suggests that, Endius Davison 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Endius Davison 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 operating costs
– Compare to the competitors, firm in the HBR case study Endius Inc.: Alternatives for Developing a New Medical Device 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 Endius Davison 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Endius Inc.: Alternatives for Developing a New Medical Device, in the dynamic environment Endius Davison has struggled to respond to the nimble upstart competition. Endius Davison has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Endius Davison is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Endius Davison needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Endius Davison to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Endius Inc.: Alternatives for Developing a New Medical Device HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Endius Davison has relatively successful track record of launching new products.
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.
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.
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 -
Better consumer reach
– The expansion of the 5G network will help Endius Davison to increase its market reach. Endius Davison 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.
Manufacturing automation
– Endius Davison can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
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.
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.
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 Endius Davison 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.
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.
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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Endius Davison can use these opportunities to build new business models that can help the communities that Endius Davison operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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.
Buying journey improvements
– Endius Davison can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Endius Inc.: Alternatives for Developing a New Medical Device 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 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 -
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 .
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.
Increasing wage structure of Endius Davison
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Endius Davison.
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.
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.
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.
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 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Endius Davison 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. Endius Davison 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.
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.
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.
