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 - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing energy prices, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, wage bills are increasing,
customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, 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 -
Effective Research and Development (R&D)
– Syntellix Implants 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Syntellix Implants 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.
Diverse revenue streams
– Syntellix Implants is present in almost all the verticals within the industry. This has provided firm in Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears 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.
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.
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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears firm has clearly differentiated products in the market place. This has enabled Syntellix Implants to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Syntellix Implants to invest into research and development (R&D) and innovation.
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.
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.
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.
Strong track record of project management
– Syntellix Implants 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
– 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.
Superior customer experience
– The customer experience strategy of Syntellix Implants in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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 -
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Adam Tatarynowicz, Havovi Joshi, Christopher Dula suggests that, Syntellix Implants 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, it seems that the employees of Syntellix Implants 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.
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.
Low market penetration in new markets
– Outside its home market of Syntellix Implants, firm in the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, 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.
Capital Spending Reduction
– Even during the low interest decade, Syntellix Implants 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.
Skills based hiring
– The stress on hiring functional specialists at Syntellix Implants 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.
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.
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.
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 -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Syntellix Implants 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 Syntellix Implants to hire the very best people irrespective of their geographical location.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Syntellix Implants can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Creating value in data economy
– The success of analytics program of Syntellix Implants has opened avenues for new revenue streams for the organization in the industry. This can help Syntellix Implants to build a more holistic ecosystem as suggested in the Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears case study. Syntellix Implants can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
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 Syntellix Implants 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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Syntellix Implants can use these opportunities to build new business models that can help the communities that Syntellix Implants operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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.
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 -
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. Syntellix Implants can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Syntellix Implants 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 Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears .
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.
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.
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 Syntellix Implants in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Syntellix: Disrupting the Medical Implant Titans with a Screw that Disappears, Syntellix Implants may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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.
High dependence on third party suppliers
– Syntellix Implants 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.
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.
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.