Thomas Medical Systems Outsourcing Policy (C) 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 (C)
A large medical electronics firm's policy could not be applied as easily as the company expected. Some adjustments were necessary--depending on the items purchased, existing relationships with suppliers, and the availability of alternative suppliers. A 1999 EFMD award winner.
Authors :: Thomas E. Vollmann, Denyse Julien, Carlos Cordon
Swot Analysis of "Thomas Medical Systems Outsourcing Policy (C)" written by Thomas E. Vollmann, Denyse Julien, Carlos Cordon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Suppliers Medical facing as an external strategic factors. Some of the topics covered in Thomas Medical Systems Outsourcing Policy (C) 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 (C) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Thomas Medical Systems Outsourcing Policy (C)
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 (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Suppliers Medical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Suppliers Medical 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in Thomas Medical Systems Outsourcing Policy (C) case study
2. Improving business portfolio management of Suppliers Medical
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 Suppliers Medical
Strengths Thomas Medical Systems Outsourcing Policy (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Suppliers Medical in Thomas Medical Systems Outsourcing Policy (C) Harvard Business Review case study are -
High switching costs
– The high switching costs that Suppliers Medical 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.
Innovation driven organization
– Suppliers Medical is one of the most innovative firm in sector. Manager in Thomas Medical Systems Outsourcing Policy (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Suppliers Medical is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Suppliers Medical 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 (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Suppliers Medical
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Suppliers Medical does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Suppliers Medical 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 Thomas E. Vollmann, Denyse Julien, Carlos Cordon 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.
Learning organization
- Suppliers Medical 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 Suppliers Medical is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Thomas Medical Systems Outsourcing Policy (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Suppliers Medical in the sector have low bargaining power. Thomas Medical Systems Outsourcing Policy (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Suppliers Medical to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Suppliers Medical 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 Thomas Medical Systems Outsourcing Policy (C) - 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 Thomas Medical Systems Outsourcing Policy (C) 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.
Sustainable margins compare to other players in Technology & Operations industry
– Thomas Medical Systems Outsourcing Policy (C) firm has clearly differentiated products in the market place. This has enabled Suppliers Medical to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Suppliers Medical to invest into research and development (R&D) and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Suppliers Medical digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Suppliers Medical 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 Thomas Medical Systems Outsourcing Policy (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Thomas Medical Systems Outsourcing Policy (C) are -
Increasing silos among functional specialists
– The organizational structure of Suppliers Medical is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Suppliers Medical needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Suppliers Medical to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Suppliers Medical 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Thomas Medical Systems Outsourcing Policy (C) 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 Suppliers Medical 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Thomas Medical Systems Outsourcing Policy (C) 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 Thomas Medical Systems Outsourcing Policy (C) can leverage the sales team experience to cultivate customer relationships as Suppliers Medical is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Thomas Medical Systems Outsourcing Policy (C), it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Thomas Medical Systems Outsourcing Policy (C) 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 Suppliers Medical has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Thomas Medical Systems Outsourcing Policy (C), it seems that the employees of Suppliers Medical 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Thomas Medical Systems Outsourcing Policy (C), is just above the industry average. Suppliers Medical 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.
Capital Spending Reduction
– Even during the low interest decade, Suppliers Medical 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.
Slow to strategic competitive environment developments
– As Thomas Medical Systems Outsourcing Policy (C) HBR case study mentions - Suppliers Medical 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.
Low market penetration in new markets
– Outside its home market of Suppliers Medical, firm in the HBR case study Thomas Medical Systems Outsourcing Policy (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Thomas Medical Systems Outsourcing Policy (C) | 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 (C) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Suppliers Medical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Suppliers Medical can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Suppliers Medical 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.
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 Suppliers Medical 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.
Using analytics as competitive advantage
– Suppliers Medical 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 (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Suppliers Medical to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Suppliers Medical can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Buying journey improvements
– Suppliers Medical can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Thomas Medical Systems Outsourcing Policy (C) 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.
Creating value in data economy
– The success of analytics program of Suppliers Medical has opened avenues for new revenue streams for the organization in the industry. This can help Suppliers Medical to build a more holistic ecosystem as suggested in the Thomas Medical Systems Outsourcing Policy (C) case study. Suppliers Medical can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Suppliers Medical is facing challenges because of the dominance of functional experts in the organization. Thomas Medical Systems Outsourcing Policy (C) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Suppliers Medical 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Suppliers Medical 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 (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Suppliers Medical 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Suppliers Medical 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 Suppliers Medical to hire the very best people irrespective of their geographical location.
Threats Thomas Medical Systems Outsourcing Policy (C) 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 (C) 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 Thomas Medical Systems Outsourcing Policy (C), Suppliers Medical 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 .
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 Suppliers Medical.
Stagnating economy with rate increase
– Suppliers Medical 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.
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. Suppliers Medical needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Suppliers Medical 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. Suppliers Medical can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Suppliers Medical is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Suppliers Medical business can come under increasing regulations regarding data privacy, data security, etc.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Suppliers Medical with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Suppliers Medical
– 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 Suppliers Medical.
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. Suppliers Medical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Suppliers Medical has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Suppliers Medical needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Suppliers Medical 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 Thomas Medical Systems Outsourcing Policy (C) 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 (C) 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 (C) 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 (C) 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 (C) 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 Suppliers Medical needs to make to build a sustainable competitive advantage.