EXACT Sciences Corp.: Commercializing a Diagnostic Test SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of EXACT Sciences Corp.: Commercializing a Diagnostic Test
This case addresses the challenges of commercializing molecular diagnostics. Along the way, it explains the technology, payment system, and the measures used to assess the value of a diagnostic test.
Swot Analysis of "EXACT Sciences Corp.: Commercializing a Diagnostic Test" written by Regina E. Herzlinger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Commercializing Diagnostic facing as an external strategic factors. Some of the topics covered in EXACT Sciences Corp.: Commercializing a Diagnostic Test case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the EXACT Sciences Corp.: Commercializing a Diagnostic Test casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, there is backlash against globalization, technology disruption,
digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of EXACT Sciences Corp.: Commercializing a Diagnostic Test
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EXACT Sciences Corp.: Commercializing a Diagnostic Test case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Commercializing Diagnostic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Commercializing Diagnostic 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test can be done for the following purposes –
1. Strategic planning using facts provided in EXACT Sciences Corp.: Commercializing a Diagnostic Test case study
2. Improving business portfolio management of Commercializing Diagnostic
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 Commercializing Diagnostic
Strengths EXACT Sciences Corp.: Commercializing a Diagnostic Test | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Commercializing Diagnostic in EXACT Sciences Corp.: Commercializing a Diagnostic Test Harvard Business Review case study are -
High brand equity
– Commercializing Diagnostic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Commercializing Diagnostic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Commercializing Diagnostic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Commercializing Diagnostic 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.
Successful track record of launching new products
– Commercializing Diagnostic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Commercializing Diagnostic 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.
Innovation driven organization
– Commercializing Diagnostic is one of the most innovative firm in sector. Manager in EXACT Sciences Corp.: Commercializing a Diagnostic Test Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Commercializing Diagnostic 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.
Superior customer experience
– The customer experience strategy of Commercializing Diagnostic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Commercializing Diagnostic 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.
Analytics focus
– Commercializing Diagnostic 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 Regina E. Herzlinger 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.
Strong track record of project management
– Commercializing Diagnostic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Technology & Operations field
– Commercializing Diagnostic 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 Commercializing Diagnostic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Commercializing Diagnostic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in EXACT Sciences Corp.: Commercializing a Diagnostic Test 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.
Highly skilled collaborators
– Commercializing Diagnostic 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses EXACT Sciences Corp.: Commercializing a Diagnostic Test | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EXACT Sciences Corp.: Commercializing a Diagnostic Test are -
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 Commercializing Diagnostic supply chain. Even after few cautionary changes mentioned in the HBR case study - EXACT Sciences Corp.: Commercializing a Diagnostic Test, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Commercializing Diagnostic vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Commercializing Diagnostic 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 - EXACT Sciences Corp.: Commercializing a Diagnostic Test should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Commercializing Diagnostic is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Commercializing Diagnostic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Commercializing Diagnostic to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study EXACT Sciences Corp.: Commercializing a Diagnostic Test, in the dynamic environment Commercializing Diagnostic has struggled to respond to the nimble upstart competition. Commercializing Diagnostic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Commercializing Diagnostic 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 Commercializing Diagnostic 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 Commercializing Diagnostic has relatively successful track record of launching new products.
High cash cycle compare to competitors
Commercializing Diagnostic has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study EXACT Sciences Corp.: Commercializing a Diagnostic Test, is just above the industry average. Commercializing Diagnostic 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study EXACT Sciences Corp.: Commercializing a Diagnostic Test, it seems that the employees of Commercializing Diagnostic 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, Commercializing Diagnostic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study EXACT Sciences Corp.: Commercializing a Diagnostic Test can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities EXACT Sciences Corp.: Commercializing a Diagnostic Test | 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test are -
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 Commercializing Diagnostic in the consumer business. Now Commercializing Diagnostic can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Commercializing Diagnostic is facing challenges because of the dominance of functional experts in the organization. EXACT Sciences Corp.: Commercializing a Diagnostic Test 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.
Manufacturing automation
– Commercializing Diagnostic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Commercializing Diagnostic can use these opportunities to build new business models that can help the communities that Commercializing Diagnostic operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Commercializing Diagnostic 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 Commercializing Diagnostic to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Commercializing Diagnostic 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.
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. Commercializing Diagnostic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Commercializing Diagnostic 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, EXACT Sciences Corp.: Commercializing a Diagnostic Test, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Commercializing Diagnostic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Commercializing Diagnostic 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.
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. Commercializing Diagnostic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Commercializing Diagnostic 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.
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. Commercializing Diagnostic 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. Commercializing Diagnostic 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.
Threats EXACT Sciences Corp.: Commercializing a Diagnostic Test External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EXACT Sciences Corp.: Commercializing a Diagnostic Test are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Commercializing Diagnostic 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.
Increasing wage structure of Commercializing Diagnostic
– 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 Commercializing Diagnostic.
Technology acceleration in Forth Industrial Revolution
– Commercializing Diagnostic has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Commercializing Diagnostic 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Commercializing Diagnostic 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test .
Shortening product life cycle
– it is one of the major threat that Commercializing Diagnostic is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Commercializing Diagnostic 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Commercializing Diagnostic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Commercializing Diagnostic.
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 Commercializing Diagnostic in the Technology & Operations sector and impact the bottomline of the organization.
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 Commercializing Diagnostic business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study EXACT Sciences Corp.: Commercializing a Diagnostic Test, Commercializing Diagnostic 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. Commercializing Diagnostic 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 Commercializing Diagnostic 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.
Weighted SWOT Analysis of EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 Commercializing Diagnostic needs to make to build a sustainable competitive advantage.
