The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services

The existing U.S. health care system is complex. Most individuals have health insurance coverage provided by various third-party payers. The payers include employers, health insurance carriers, and government-sponsored programs, such as nationally administered Medicare and Medicaid, which is offered by all 50 states with some support from the federal government. Each payer's program varies in terms of the health services covered as well as the amount of the cost of care allocated back to the individual in the form of visit copayments, individual deductibles, and other cost-sharing strategies. These offerings are administered by various health plans and many payers offer multiple administrative alternatives. For example, Medicare is administered nationally, but there are multiple "Medicare Advantage" alternatives available as well as the basic program offering. In addition, there are numerous Medicare supplemental plans available to increase the benefits for the individual recipient. Founded in 2014, DPC Concentric Health System's (DPC Concentric's) mission is to identify the people, strategies, and capital needed to help the U.S. health care system heal itself. Based on continuous improvement design driven by continuous learning, DPC Concentric's human capital/technology initiatives deploy the power of entrepreneurial physicians in a free market. This social entrepreneurial approach responds distinctly to the incumbent relationship infrastructure of "fee-for-service" third-party reimbursement at the provider and self-funded payer levels. The DPC Concentric continuous-improvement infrastructure becomes practical, achievable, and self-perpetuating as incumbent leadership commits to catalyzing outcome-based health care solutions. It is distinctly relationship based, providing incumbent advisers ample opportunity to lead as continuous-improvement consultants to physicians and employers.

Authors :: Bala Mulloth, A. Jefferson Ellington, Art Taft

Topics :: Innovation & Entrepreneurship

Tags :: IT, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services" written by Bala Mulloth, A. Jefferson Ellington, Art Taft includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dpc Health facing as an external strategic factors. Some of the topics covered in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services case study are - Strategic Management Strategies, IT and Innovation & Entrepreneurship.

Some of the macro environment factors that can be used to understand the The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services casestudy better are - – wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, technology disruption, etc

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Introduction to SWOT Analysis of The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dpc Health, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dpc Health 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services can be done for the following purposes –
1. Strategic planning using facts provided in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services case study
2. Improving business portfolio management of Dpc Health
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dpc Health

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Strengths The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Dpc Health in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services Harvard Business Review case study are -

Analytics focus

– Dpc Health 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 Bala Mulloth, A. Jefferson Ellington, Art Taft 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.

Innovation driven organization

– Dpc Health is one of the most innovative firm in sector. Manager in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Dpc Health digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dpc Health 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.

Strong track record of project management

– Dpc Health 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 recruit top talent

– Dpc Health is one of the leading recruiters in the industry. Managers in the The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

High switching costs

– The high switching costs that Dpc Health 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.

Operational resilience

– The operational resilience strategy in the The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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.

Superior customer experience

– The customer experience strategy of Dpc Health in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to lead change in Innovation & Entrepreneurship field

– Dpc Health 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 Dpc Health in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services firm has clearly differentiated products in the market place. This has enabled Dpc Health to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Dpc Health to invest into research and development (R&D) and innovation.

Diverse revenue streams

– Dpc Health is present in almost all the verticals within the industry. This has provided firm in The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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.

Cross disciplinary teams

– Horizontal connected teams at the Dpc Health 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.

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Weaknesses The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services, in the dynamic environment Dpc Health has struggled to respond to the nimble upstart competition. Dpc Health has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services, it seems that the employees of Dpc Health 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.

Aligning sales with marketing

– It come across in the case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services can leverage the sales team experience to cultivate customer relationships as Dpc Health is planning to shift buying processes online.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dpc Health is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High bargaining power of channel partners

– Because of the regulatory requirements, Bala Mulloth, A. Jefferson Ellington, Art Taft suggests that, Dpc Health 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.

High cash cycle compare to competitors

Dpc Health 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.

Lack of clear differentiation of Dpc Health products

– To increase the profitability and margins on the products, Dpc Health needs to provide more differentiated products than what it is currently offering in the marketplace.

Slow decision making process

– As mentioned earlier in the report, Dpc Health has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Dpc Health even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

No frontier risks strategy

– After analyzing the HBR case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.

Need for greater diversity

– Dpc Health 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 Dpc Health, firm in the HBR case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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Opportunities The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services | 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 Dpc Health in the consumer business. Now Dpc Health can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Dpc Health 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dpc Health to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Learning at scale

– Online learning technologies has now opened space for Dpc Health 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Dpc Health in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Loyalty marketing

– Dpc Health 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dpc Health 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 Dpc Health to hire the very best people irrespective of their geographical location.

Developing new processes and practices

– Dpc Health can develop new processes and procedures in Innovation & Entrepreneurship 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Dpc Health 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.

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 Dpc Health 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Dpc Health is facing challenges because of the dominance of functional experts in the organization. The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dpc Health can use these opportunities to build new business models that can help the communities that Dpc Health operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Dpc Health can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Dpc Health can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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Threats The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dpc Health with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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. Dpc Health needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

Environmental challenges

– Dpc Health 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. Dpc Health can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

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 Dpc Health.

Easy access to finance

– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Dpc Health can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

Shortening product life cycle

– it is one of the major threat that Dpc Health is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Stagnating economy with rate increase

– Dpc Health 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Dpc Health in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.

Regulatory challenges

– Dpc Health 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 Innovation & Entrepreneurship industry regulations.

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 Dpc Health business can come under increasing regulations regarding data privacy, data security, etc.

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 Dpc Health in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

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.

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Weighted SWOT Analysis of The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 The DPC Concentric Health Relationship Platform: Catalyzing Social Entrepreneurship in Health Care Services 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 Dpc Health needs to make to build a sustainable competitive advantage.

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