Thomas Medical Systems Outsourcing Policy (Abridged) (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Thomas Medical Systems Outsourcing Policy (Abridged) (A)
A large medical electronics firm is refining its outsourcing policies and the new ways in which it needs to work with its suppliers. The firm begins with an objective to purchase assemblies instead of components. This objective evolves until the supplier takes over a large part of the engineering design as well as the product database creation and maintenance. Many problems are encountered, but the product comes to market and is successful. A 1999 EFMD award winner.
Authors :: Thomas E. Vollmann, Denyse Julien, Carlos Cordon, Petri Lehtivaara
Swot Analysis of "Thomas Medical Systems Outsourcing Policy (Abridged) (A)" written by Thomas E. Vollmann, Denyse Julien, Carlos Cordon, Petri Lehtivaara includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Outsourcing Objective facing as an external strategic factors. Some of the topics covered in Thomas Medical Systems Outsourcing Policy (Abridged) (A) case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Thomas Medical Systems Outsourcing Policy (Abridged) (A) casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Thomas Medical Systems Outsourcing Policy (Abridged) (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Thomas Medical Systems Outsourcing Policy (Abridged) (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Outsourcing Objective, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Outsourcing Objective 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) can be done for the following purposes –
1. Strategic planning using facts provided in Thomas Medical Systems Outsourcing Policy (Abridged) (A) case study
2. Improving business portfolio management of Outsourcing Objective
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 Outsourcing Objective
Strengths Thomas Medical Systems Outsourcing Policy (Abridged) (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Outsourcing Objective in Thomas Medical Systems Outsourcing Policy (Abridged) (A) Harvard Business Review case study are -
Diverse revenue streams
– Outsourcing Objective is present in almost all the verticals within the industry. This has provided firm in Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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.
Strong track record of project management
– Outsourcing Objective is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Outsourcing Objective has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Outsourcing Objective 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.
Ability to lead change in Technology & Operations field
– Outsourcing Objective 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 Outsourcing Objective in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Outsourcing Objective has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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.
Ability to recruit top talent
– Outsourcing Objective is one of the leading recruiters in the industry. Managers in the Thomas Medical Systems Outsourcing Policy (Abridged) (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Outsourcing Objective 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Outsourcing Objective in the sector have low bargaining power. Thomas Medical Systems Outsourcing Policy (Abridged) (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Outsourcing Objective to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Outsourcing Objective 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 Outsourcing Objective is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Thomas Medical Systems Outsourcing Policy (Abridged) (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Outsourcing Objective in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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.
Innovation driven organization
– Outsourcing Objective is one of the most innovative firm in sector. Manager in Thomas Medical Systems Outsourcing Policy (Abridged) (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Thomas Medical Systems Outsourcing Policy (Abridged) (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Thomas Medical Systems Outsourcing Policy (Abridged) (A) are -
Skills based hiring
– The stress on hiring functional specialists at Outsourcing Objective has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Outsourcing Objective 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 Outsourcing Objective products
– To increase the profitability and margins on the products, Outsourcing Objective needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Thomas Medical Systems Outsourcing Policy (Abridged) (A), is just above the industry average. Outsourcing Objective 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Outsourcing Objective is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 operating costs
– Compare to the competitors, firm in the HBR case study Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Outsourcing Objective 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Thomas Medical Systems Outsourcing Policy (Abridged) (A), in the dynamic environment Outsourcing Objective has struggled to respond to the nimble upstart competition. Outsourcing Objective has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Thomas Medical Systems Outsourcing Policy (Abridged) (A) HBR case study mentions - Outsourcing Objective 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Thomas E. Vollmann, Denyse Julien, Carlos Cordon, Petri Lehtivaara suggests that, Outsourcing Objective 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.
Interest costs
– Compare to the competition, Outsourcing Objective 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.
Capital Spending Reduction
– Even during the low interest decade, Outsourcing Objective 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.
Opportunities Thomas Medical Systems Outsourcing Policy (Abridged) (A) | 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) are -
Leveraging digital technologies
– Outsourcing Objective can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Outsourcing Objective 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.
Creating value in data economy
– The success of analytics program of Outsourcing Objective has opened avenues for new revenue streams for the organization in the industry. This can help Outsourcing Objective to build a more holistic ecosystem as suggested in the Thomas Medical Systems Outsourcing Policy (Abridged) (A) case study. Outsourcing Objective can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Outsourcing Objective in the consumer business. Now Outsourcing Objective can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Outsourcing Objective 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, Thomas Medical Systems Outsourcing Policy (Abridged) (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Outsourcing Objective 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.
Manufacturing automation
– Outsourcing Objective 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Outsourcing Objective 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.
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. Outsourcing Objective can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Outsourcing Objective is facing challenges because of the dominance of functional experts in the organization. Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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
– Outsourcing Objective 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Outsourcing Objective 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, Outsourcing Objective can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Outsourcing Objective can use these opportunities to build new business models that can help the communities that Outsourcing Objective operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Threats Thomas Medical Systems Outsourcing Policy (Abridged) (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Thomas Medical Systems Outsourcing Policy (Abridged) (A) are -
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. Outsourcing Objective can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Outsourcing Objective 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.
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 Outsourcing Objective 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A), Outsourcing Objective 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 .
Stagnating economy with rate increase
– Outsourcing Objective 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.
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. Outsourcing Objective 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.
Consumer confidence and its impact on Outsourcing Objective 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.
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.
Shortening product life cycle
– it is one of the major threat that Outsourcing Objective is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Outsourcing Objective.
High dependence on third party suppliers
– Outsourcing Objective 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.
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 Outsourcing Objective business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Thomas Medical Systems Outsourcing Policy (Abridged) (A) 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 Outsourcing Objective needs to make to build a sustainable competitive advantage.
