Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears
Set in early October 2017, this case follows Utz Claassen, the founder and chairman of Syntellix - a medical parts company that specialised in the research, development and sales of bio-absorbable, metallic implants. Syntellix was founded in 2008 as a spin-off from the special research division at the University of Hanover in Germany with the intention of translating the institute's theoretical knowledge of magnesium-based biodegradable implants into viable medical applications. After the successful completion of animal testing in 2010, the company began human clinical studies of its patented MAGNEZIX? alloy used in compression screws, pins and plates for the treatment of bone fractures, which had traditionally relied on steel and titanium parts. After more than five years of meticulous hard work, by 2017 MAGNEZIX? medical screws and pins have met CE-approval for human use in 30 countries. The product officially launched in Germany in September 2013. And by the end of 2016, about 25,000 successful implants had taken place across Europe, Asia, Africa and the Middle East. In March 2017, Syntellix AG founded Syntellix Asia based in Singapore, where it received venture financing and government support to make inroads into the booming Asian healthcare sector. Despite such success, the biggest operational difficulty Syntellix has is to continue making its way in a market dominated by gigantic players with huge resources, infrastructure and relationship network.
Authors :: Adam Tatarynowicz, Havovi Joshi, Christopher Dula
Swot Analysis of "Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears" written by Adam Tatarynowicz, Havovi Joshi, Christopher Dula includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Syntellix Implants facing as an external strategic factors. Some of the topics covered in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study are - Strategic Management Strategies, Disruptive innovation, Entrepreneurship and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears casestudy better are - – technology disruption, talent flight as more people leaving formal jobs, increasing energy prices, increasing transportation and logistics costs, increasing commodity prices, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
increasing household debt because of falling income levels, wage bills are increasing, etc
Introduction to SWOT Analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Syntellix Implants, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Syntellix Implants 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears can be done for the following purposes –
1. Strategic planning using facts provided in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study
2. Improving business portfolio management of Syntellix Implants
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 Syntellix Implants
Strengths Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Syntellix Implants in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study are -
Analytics focus
– Syntellix Implants 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 Adam Tatarynowicz, Havovi Joshi, Christopher Dula 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.
Organizational Resilience of Syntellix Implants
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Syntellix Implants does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Innovation & Entrepreneurship field
– Syntellix Implants 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 Syntellix Implants in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Syntellix Implants 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Syntellix Implants is one of the most innovative firm in sector. Manager in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Syntellix Implants has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Syntellix Implants to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Syntellix Implants has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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.
Operational resilience
– The operational resilience strategy in the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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
- Syntellix Implants 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 Syntellix Implants is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Syntellix Implants is one of the leading recruiters in the industry. Managers in the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Syntellix Implants has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Syntellix Implants 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Syntellix Implants digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Syntellix Implants 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, in the dynamic environment Syntellix Implants has struggled to respond to the nimble upstart competition. Syntellix Implants has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Syntellix Implants 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.
Slow decision making process
– As mentioned earlier in the report, Syntellix Implants 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. Syntellix Implants 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.
Interest costs
– Compare to the competition, Syntellix Implants 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.
Increasing silos among functional specialists
– The organizational structure of Syntellix Implants is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Syntellix Implants needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Syntellix Implants to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears can leverage the sales team experience to cultivate customer relationships as Syntellix Implants is planning to shift buying processes online.
Need for greater diversity
– Syntellix Implants 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Syntellix Implants is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, is just above the industry average. Syntellix Implants 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.
High cash cycle compare to competitors
Syntellix Implants 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.
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 Syntellix Implants supply chain. Even after few cautionary changes mentioned in the HBR case study - Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Syntellix Implants vulnerable to further global disruptions in South East Asia.
Opportunities Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears | 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
Loyalty marketing
– Syntellix Implants 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.
Better consumer reach
– The expansion of the 5G network will help Syntellix Implants to increase its market reach. Syntellix Implants will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Syntellix Implants 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.
Leveraging digital technologies
– Syntellix Implants 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, Syntellix Implants 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.
Buying journey improvements
– Syntellix Implants can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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.
Learning at scale
– Online learning technologies has now opened space for Syntellix Implants 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.
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. Syntellix Implants can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Syntellix Implants can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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 Syntellix Implants in the consumer business. Now Syntellix Implants 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 Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Syntellix Implants 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 Syntellix Implants 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 Innovation & Entrepreneurship segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Syntellix Implants 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.
Threats Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears are -
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.
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 Syntellix Implants.
Shortening product life cycle
– it is one of the major threat that Syntellix Implants is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Syntellix Implants 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. Syntellix Implants can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Syntellix Implants with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Syntellix Implants will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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. Syntellix Implants needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Syntellix Implants 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.
Increasing wage structure of Syntellix Implants
– 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 Syntellix Implants.
Regulatory challenges
– Syntellix Implants 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.
Consumer confidence and its impact on Syntellix Implants 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.
Stagnating economy with rate increase
– Syntellix Implants 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.
Weighted SWOT Analysis of Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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 Syntellix Implants needs to make to build a sustainable competitive advantage.
