Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market
Be Well Hospitals - a multi-specialty secondary healthcare chain of hospitals is set up in the suburbs, industrial towns and district headquarters of the South Indian state of Tamil Nadu. The hospital chain co-founded by Dr. C.J.Vetrievel in 2011, fulfills the need of quality healthcare services in secondary healthcare market segment. They provide access to high-quality primary and secondary healthcare services at affordable price to the semi-urban and rural population through their chain of multi-specialty hospitals. In the four and half years, since its founding, Be Well has set up eight hospitals with a combined capacity of more than 280 beds and has treated close to 500,000 patients. The case describes Be Well's operations and the marketing initiatives it deployed to increase the adoption of its service concept in a two -tiered market. it provides information about the content of Be Well's past advertising communications and the media choices it made to build its brand. The management is grappling with the dilemma of brand building and educating potential customers about the high quality of care available at Be Well in a format that had a smaller footprint than its big city rivals. A complicating factor is creating a three-tier market with the limited resources in a setting where the customers are used to a two-tier service structure. They face a resource allocation challenge with regard to the mix of media-based and non-media based communication platforms. The management needs to decided on the choice of service attributes or dimensions around which the Be Well brand to be built and whether to focus on local branding of each hospital or develop a unified and common brand across all its facilities in the state.
Authors :: Piyush Kumar, Sonia Mehrotra, Geetika Shah
Swot Analysis of "Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market" written by Piyush Kumar, Sonia Mehrotra, Geetika Shah includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospitals Tier facing as an external strategic factors. Some of the topics covered in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market case study are - Strategic Management Strategies, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing household debt because of falling income levels, increasing energy prices, supply chains are disrupted by pandemic , there is backlash against globalization, wage bills are increasing,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospitals Tier, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospitals Tier 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market can be done for the following purposes –
1. Strategic planning using facts provided in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market case study
2. Improving business portfolio management of Hospitals Tier
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hospitals Tier
Strengths Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospitals Tier in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market Harvard Business Review case study are -
Organizational Resilience of Hospitals Tier
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hospitals Tier does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Hospitals Tier 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 Strategy & Execution industry
– Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market firm has clearly differentiated products in the market place. This has enabled Hospitals Tier to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Hospitals Tier to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Hospitals Tier 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Hospitals Tier is one of the leading recruiters in the industry. Managers in the Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Hospitals Tier 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 Hospitals Tier is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Hospitals Tier has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hospitals Tier 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.
High brand equity
– Hospitals Tier has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospitals Tier to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Hospitals Tier is one of the most innovative firm in sector. Manager in Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Hospitals Tier in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Hospitals Tier is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Hospitals Tier digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospitals Tier 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market are -
Capital Spending Reduction
– Even during the low interest decade, Hospitals Tier 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market, in the dynamic environment Hospitals Tier has struggled to respond to the nimble upstart competition. Hospitals Tier has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market HBR case study mentions - Hospitals Tier 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.
Products dominated business model
– Even though Hospitals Tier 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 - Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Hospitals Tier has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Hospitals Tier 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.
Slow decision making process
– As mentioned earlier in the report, Hospitals Tier 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. Hospitals Tier 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.
Increasing silos among functional specialists
– The organizational structure of Hospitals Tier is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Hospitals Tier needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hospitals Tier to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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 operating costs
– Compare to the competitors, firm in the HBR case study Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Hospitals Tier 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Piyush Kumar, Sonia Mehrotra, Geetika Shah suggests that, Hospitals Tier 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.
Opportunities Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market | 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospitals Tier is facing challenges because of the dominance of functional experts in the organization. Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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.
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 Hospitals Tier in the consumer business. Now Hospitals Tier can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Hospitals Tier has opened avenues for new revenue streams for the organization in the industry. This can help Hospitals Tier to build a more holistic ecosystem as suggested in the Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market case study. Hospitals Tier can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Hospitals Tier can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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, Hospitals Tier can use these opportunities to build new business models that can help the communities that Hospitals Tier operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hospitals Tier 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 Hospitals Tier to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Hospitals Tier 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, Hospitals Tier 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.
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. Hospitals Tier can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hospitals Tier can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Hospitals Tier can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Hospitals Tier can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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.
Developing new processes and practices
– Hospitals Tier can develop new processes and procedures in Strategy & Execution 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.
Threats Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market are -
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. Hospitals Tier needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hospitals Tier with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Hospitals Tier high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hospitals Tier 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market .
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 Hospitals Tier business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Hospitals Tier 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. Hospitals Tier can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Hospitals Tier 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 Strategy & Execution industry regulations.
Increasing wage structure of Hospitals Tier
– 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 Hospitals Tier.
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 Hospitals Tier.
Stagnating economy with rate increase
– Hospitals Tier 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.
Shortening product life cycle
– it is one of the major threat that Hospitals Tier is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Hospitals Tier has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Hospitals Tier needs to keep up with the evolution of technology in the Strategy & Execution 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.
Weighted SWOT Analysis of Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market 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 Hospitals Tier needs to make to build a sustainable competitive advantage.
