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 - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing energy prices, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, 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 -
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.
Low bargaining power of suppliers
– Suppliers of Commercializing Diagnostic in the sector have low bargaining power. EXACT Sciences Corp.: Commercializing a Diagnostic Test has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Commercializing Diagnostic to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Commercializing Diagnostic 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Commercializing Diagnostic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Commercializing Diagnostic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Operational resilience
– The operational resilience strategy in the EXACT Sciences Corp.: Commercializing a Diagnostic Test 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.
Learning organization
- Commercializing Diagnostic 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 Commercializing Diagnostic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EXACT Sciences Corp.: Commercializing a Diagnostic Test Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Sustainable margins compare to other players in Technology & Operations industry
– EXACT Sciences Corp.: Commercializing a Diagnostic Test firm has clearly differentiated products in the market place. This has enabled Commercializing Diagnostic to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Commercializing Diagnostic to invest into research and development (R&D) and innovation.
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.
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.
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.
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 -
Need for greater diversity
– Commercializing Diagnostic 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.
Low market penetration in new markets
– Outside its home market of Commercializing Diagnostic, firm in the HBR case study EXACT Sciences Corp.: Commercializing a Diagnostic Test needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Commercializing Diagnostic needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
Aligning sales with marketing
– It come across in the case study EXACT Sciences Corp.: Commercializing a Diagnostic Test 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 EXACT Sciences Corp.: Commercializing a Diagnostic Test can leverage the sales team experience to cultivate customer relationships as Commercializing Diagnostic is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As EXACT Sciences Corp.: Commercializing a Diagnostic Test HBR case study mentions - Commercializing Diagnostic 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.
Skills based hiring
– The stress on hiring functional specialists at Commercializing Diagnostic 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.
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.
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.
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 -
Leveraging digital technologies
– Commercializing Diagnostic 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Commercializing Diagnostic 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.
Learning at scale
– Online learning technologies has now opened space for Commercializing Diagnostic 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
– 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.
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.
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.
Building a culture of innovation
– managers at Commercializing Diagnostic 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.
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.
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.
Creating value in data economy
– The success of analytics program of Commercializing Diagnostic has opened avenues for new revenue streams for the organization in the industry. This can help Commercializing Diagnostic to build a more holistic ecosystem as suggested in the EXACT Sciences Corp.: Commercializing a Diagnostic Test case study. Commercializing Diagnostic can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Commercializing Diagnostic 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.
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.
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.
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 -
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.
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.
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.
Environmental challenges
– Commercializing Diagnostic 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. Commercializing Diagnostic can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
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.
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.
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.
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.
Stagnating economy with rate increase
– Commercializing Diagnostic 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.
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 .
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. Commercializing Diagnostic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 .
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.